Luxembourg vs Ireland domiciled ETF

For residents of the United Arab Emirates.
Post Reply
Topic Author
ags
Posts: 11
Joined: Fri Jan 15, 2021 11:45 pm

Luxembourg vs Ireland domiciled ETF

Post by ags »

I am a NRA (per US tax rules) - Indian resident in UAE. I have been reading up on tax efficient ways of investing in US stocks. While most articles recommend using the Ireland domiciled ETF because of its tax treaty with US that allows dividend WHT @ 15% instead of the usual standard of 30%.

However, in this link https://www.bogleheads.org/wiki/Nonresi ... sset_class, the WHT for dividend is @ 15% even for Luxembourg domiciled ETF.

So should we be indifferent to Luxembourg or Ireland domiciled ETFs for US investments?

Thanks in advance.
AGS
Topic Author
ags
Posts: 11
Joined: Fri Jan 15, 2021 11:45 pm

Re: Luxembourg vs Ireland domiciled ETF

Post by ags »

Apologies - I got the answer to this question in other posts within the forum.

Thanks
AGS
TedSwippet
Posts: 5166
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Luxembourg vs Ireland domiciled ETF

Post by TedSwippet »

Welcome.
ags wrote: Sat Jan 16, 2021 7:20 am Apologies - I got the answer to this question in other posts within the forum.
ags wrote: Sat Jan 16, 2021 12:08 am So should we be indifferent to Luxembourg or Ireland domiciled ETFs for US investments?
The Ireland/Luxembourg trade-off is explained further down the wiki page you mentioned, in the Recommendations explained section. It is also covered in the Domicile page.

Can you say if you found something about these (or other) wiki pages misleading, or if this information was simply a bit difficult to find? If so, maybe I can fix that in the wiki. Thanks.
Topic Author
ags
Posts: 11
Joined: Fri Jan 15, 2021 11:45 pm

Re: Luxembourg vs Ireland domiciled ETF

Post by ags »

Can you say if you found something about these (or other) wiki pages misleading, or if this information was simply a bit difficult to find? If so, maybe I can fix that in the wiki. Thanks.
Thanks very much for your follow up. Both the articles referenced in your response mentions that Luxembourg is subject to 30% WHT. This link https://taxsummaries.pwc.com/united-sta ... ding-taxes states that US Luxembourg has a 15% tax treaty rate. But it was not clear to me as to why Luxembourg domiciled funds did not enjoy this rate.

However a reading of this post viewtopic.php?t=305414 was very useful in clearing my doubts.

Regards
AGS
Post Reply