Today I would like to shed some light on the special tax situation of the $TDIV (+0.35%) which result from the fact that it is a Dutch ETF.

One particularly interesting aspect becomes apparent if you have already exhausted your tax-free allowance, as the tax burden is reduced in this case due to the special structure of the ETF.

The ETF deducts a (Dutch) withholding tax of 15% on dividend payments, which may seem disadvantageous at first glance. However, this is precisely where it has a tax advantage: by offsetting this withholding tax against the domestic tax burden and the partial exemption, the effective tax burden is significantly reduced. As a result, investors have to pay less of their distributions than would be the case with comparable ETFs without withholding tax.

Helmut Jonen once wrote more specific figures on this in his story:

"As a result, the tax burden on dividend distributions is not only reduced to 18.46% due to the 30% partial exemption, but even to just 17.63%. This would bring the partial exemption down to 33.15%."