Jump to content

How does Brexit affect Dbx


Spreadsheet Ranger

Recommended Posts

I know there was some talk a while ago on shareforum.com whether it is wise to put money into DBX's due to the fact that you still get taxed on the other side (not sure which portion, either growth or dividends, since its deducted by DBX themselves) vs investing locally and not being taxed on the growth including the dividends.

Link to comment
Share on other sites

@Werner true, post brexit is a good time I suppose.

 

@Sebulba you know what thats a very good point I recall something similar, but I know at the time someone made a compelling enough argument for me to buy it anyway, dammit let me go to twitter and ask a pro quickly I will brb

Join the official JSE Discord Channel

Link to comment
Share on other sites

I know there was some talk a while ago on shareforum.com whether it is wise to put money into DBX's due to the fact that you still get taxed on the other side (not sure which portion, either growth or dividends, since its deducted by DBX themselves) vs investing locally and not being taxed on the growth including the dividends.

 

I read here: https://justonelap.com/etf-dbxwd/

It is listed as an “inward investment” on the JSE. This means that it’s classified as a rand denominated investment, even though it offers a portfolio of only international equity assets. The inward investment categorisation ensures that there are no foreign exchange control restrictions or allowances required, nor any tax clearances for individuals, trusts or corporate investors to invest as much as they wish

 

 

Also tweeted Nerina Visser https://twitter.com/Nerina_Visser/status/747789262544838657

Join the official JSE Discord Channel

Link to comment
Share on other sites

A disadvantage of holding Deutsche Bank MSCI World in a TFSA account is you do not get the full benefit of not having to pay government’s 15% dividend withholding tax.

 

Deutsche Bank’s response to my question on how dividend withholding tax worked on its range of blue-chip exchange-traded funds (ETFs) was: "Section 64 (n) of the Income Tax Act provides for a rebate to be deducted from the local dividends tax payable in respect of a foreign dividend if that dividend was subject to foreign tax."

 

As far as I understand that, it means the dividend taxes are already deducted in the US or wherever, so you do not get as much tax savings from holding them in a TFSA as you would by escaping the full 15% tax on dividends from local companies.

 

Aside from the tax issues, the MSCI World tracker is not particularly attractive from a dividend perspective since its dividend yield is only about 1.7%, placing it fairly low when ranking ETFs by their dividend or interest payouts.

 

I got the above from the Shareforum.com forum. It also refers to the below link

 

http://www.bdlive.co.za/opinion/columnists/2015/08/27/how-to-find-your-perfect-tax-free-saving-fund

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...