Withholding tax applies because it is levied in the Netherlands. If the tax-free amount is not exhausted, this is a disadvantage; if it is exhausted, it is an advantage (solidarity surcharge is not calculated on the withholding tax, but only on the remainder). I have this in my own custody account, but have the $VWRL for my daughter. Makes more sense here, especially in the savings phase, otherwise you leave too much return.
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@Dividenden_Dompteur Thank you. Honestly. It'll be out for me. My kids have a 1000€ tax-free allowance. Why should I pay withholding tax then?
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•@trade_commander_2498 That's why I have the $VWRL in the distributing version for her. She's still using the tax-free amount for now and when the custody account is transferred to her at 18, it might be a good idea to make a distribution every 3 months so she can see what investing can achieve and doesn't get the idea of throwing the party of her life 😜
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•@Dividenden_Dompteur ah ok. Yes, I have to take the accumulated variant. At Trade Republic you get the TER back or it is invested in the ETF on a monthly basis. There was only the variant to choose from.
But I like your plan.
I also thought that the distribution was an advantage. But not if I still have to pay tax, even though that wouldn't be necessary.
But I like your plan.
I also thought that the distribution was an advantage. But not if I still have to pay tax, even though that wouldn't be necessary.
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@trade_commander_2498 I have my children's custody account with ING, but I can understand the offer from Trade Republic. It's just a question of how long they have this offer. My daughter is 4, so I still have 14 years of investing ahead of me.
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@trade_commander_2498 Just for your information. If the junior custody account is in your child's name, then each of your children has €1,000 + BASIC FREE CONTRIBUTION tax-free. This means around €12,000 per year.
Look for a non-assessment certificate, which you submit to the tax office every 2 years. This allows you to trade significantly more securities for your child without paying taxes :)
Because every natural person is subject to the same basic tax-free amount.
Look for a non-assessment certificate, which you submit to the tax office every 2 years. This allows you to trade significantly more securities for your child without paying taxes :)
Because every natural person is subject to the same basic tax-free amount.
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@BockaufDividenden From a certain amount (<€12,000 p.a.), however, CT is payable for the child.
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@KevinE If you mean contributions to statutory health insurance, then it is from €6,420 or more than €535 per month. That's right, then unfortunately GKV contributions are due ...
Nevertheless, you can still sell €6,419 p.a. tax-free and buy a new one.
And if it's really worth it, then just pay the GKV contribution if you really trade so well for the junior portfolio and make <€12,000 profit p.a.
;)
Nevertheless, you can still sell €6,419 p.a. tax-free and buy a new one.
And if it's really worth it, then just pay the GKV contribution if you really trade so well for the junior portfolio and make <€12,000 profit p.a.
;)
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