ETF Name: VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF
Ticker: TDGB
Link: TDGB - JustETF
This is based in Netherlands. Will there be a withholding tax for us in UK?
I’m not 100% sure of the tax implications but I think you would be liable for withholding tax. I’m certain this is the case with French-domiciled ETFs, so I’d imagine it would be due for the Netherlands too.
Generally, you want ETFs that are domiciled in Ireland or Luxembourg.
Companies based in Luxembourg definitely charge the withholding tax; not sure about the ETFs.
I agree about Ireland’s withholding tax situation.
Please could you add TDGB
Available on Trading212
https://www.trading212.com/trading-instruments/invest/TDGB.GB
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Also @ InvestEngine
I’m 99% sure this is subject to withholding tax because it’s domiciled in the Netherlands like VanEck’s global property ETF. I think the rate’s 15% but I’ve plucked that off the top off my head so I may be wrong.
Yes @rehpot - that is correct. There is a withholding tax on dividends with this ETF.
That aside, this ETF has performed admirably when compared against some of it’s peers:
The outsized bounce out of the COVID crash shows a very impressive 3 year return - likely driven by being a bit overweight energy and materials.
I have quite a big holding of TDGB in my AJ Bell SIPP and it would be a welcome addition to my Freetrade ISA.
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Hello @adam
TDGB is available on all platforms including InvestEngine and Trading212.
If it cannot be added then a note from someone at Freetrade would be appreciated.
Thanks
The team has it on the list for next batch additions
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Thank you Adam
@rehpot You are right about withholding tax of 15%
Isn’t it same as withholding tax on USA ETF domiciled in Ireland?
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@rehpot @heather and @SpaceTrader
This is the resource I use when looking up withholding taxes. Yes, even ETF’s are taxed 
…death and taxes…
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As I understand it, Ireland- or Luxembourg-domiciled ETFs are exempt from withholding tax.
That said, the ETFs themselves may pay it on their underlying holdings.
In this case, I think it’s included within an ETF’s transaction costs which is over and above the OCF.
Not sure I understand what you’re saying but how the taxes are taken from your ETF is with the dividend payment itself. Taking the tread topic ETF as example.
The last dividend for TDGB (VanEck Morningstar Developed Markets Dividend Leaders) had its ex-date on 6th December and Payment Date on 13th December. The declared dividend was €0.28.
So, if you for example had 100 shares in this ETF your total dividend would be €28.00 however, on payment date you will not get 28 euros but only €23.80 paid to you in your portfolio with the 15% WHT already taken at source. You receive the Sterling equivalent of the Euro based on exchange rate; so about £20.55-ish
The only deduction from your ETF itself is the investment management and admin costs each year indicated as Total Expense Ratio %. The TER is deducted directly from the ETF rather than being charged separately, and the value and performance of your investment is quoted after this deduction.
The majority of the “big and famous brands” ETF’s are domiciled in Ireland, so no withholding taxes there. Yay!
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The TER does not include some things such as transaction costs, ie broker fees, spreads and taxes, which are paid on the underlying portfolio when rebalancing, for example.
The true total cost also includes other things like tracking difference.
Transaction costs can be difficult to find for an ETF. Taking VMID as one example, its ongoing charge is listed as 0.11% but there are transaction costs of circa 0.24% on top.
Yup. I am aware of this. No such thing as a free lunch in the world of capitalism. Everything has a small fee or charge.
I focused more on trying to answer your question about where the withholding tax are taken from based on how you worded your statement and how I interpreted it. TER and TCO is a separate issue. The emphasis was on withholding tax.