2.2 THE TAX SYSTEM OF YOUR COUNTRYOF RESIDENCE ALSO APPLIES In your country of residence, dividends distributed by TotalEnergies may be taxed. However, a mechanism for preventing double taxation may have been provided for by the tax treaty between France and your country of residence or by the internal regulations. You need to contact the tax authorities of your country of residence or your financial advisor to obtain more information about your particular situation.
A few examples
In Germany: above 801 per year for singles (and 1,602 per year for couples filing a joint income tax return), dividends are taxed at the overall flat rate of 25% (plus church tax, if applicable) or, if you opt to, at your applicable income tax rate.
A 5.5% solidarity surcharge is levied on the 25% withholding tax, representing a global rate of 26.375%. To benefit from the tax exemption on dividends up to 801 or 1,602, as applies, a specific request must be sent to your paying financial institution.
In Belgium: your dividends are taxed at source at the rate of 30%, when the payment is made by a Belgian bank or broker and, in principle, they don t have to be mentioned on your tax return. However, an exemption from withholding tax can be granted for dividends up to 800 per year and per taxpayer. In practice, this exemption up to 800 can then be requested via the annual tax return.
However, in the case of lower income, you can choose to report dividend income in your income tax return to take into account the withholding tax and thereby obtain reimbursement of any excess tax paid. Some types of income must be declared in the tax return, such as dividend income, earned directly outside the country.
N.B. The Belgian tax administration allows individual shareholders to apply for a tax credit equal to 15% of the dividend amount net of French withholding tax. To benefit from this tax credit, you need to report the dividend amount in the relevant page of your tax returns. Note that a new tax treaty signed on November 9, 2021 between France and Belgium deletes this tax credit. This will be applicable only once the new treaty has been approved and ratified by both countries, i.e. at the earliest for French derived dividends distributed as of January 1, 2023.
In the United Kingdom: if your shares are not held in an ISA (Individual Savings Account) or another specific fiscal framework, dividends up to £2,000 per fiscal year are not taxed (i.e. between April 6, 2022 and April 5, 2023). The dividend portion above this threshold is therefore likely to be taxed. However, taxpayers can benefit from an annual tax allowance, which applies to the total taxable income of the year. Depending on your income, the allowance is set at £12,570 for the tax year 2022-2023. If you earn more than £2,000 in dividends, you need to assess your situation and add the dividend portion above £2,000 to your other sources of income. If the total is lower than or equal to £12,570, your income will not be taxed. If the total is higher than £12,570, your income will be taxed. Depending on your situation, the dividends in excess of £2,000 will be taxed at a rate of 8.75%, 33.75% or 39.35%.
In the USA: taxation on the dividends of shares not held in an IRA (Individual Retirement Account) depends on their holding period. Qualified dividends (received from shares held for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date) will be taxable at the preferential rates applicable to long-term capital gains (i.e. 0%, 15% or 20%, depending on the tax bracket). Other dividends are taxed at the ordinary income tax rates (i.e. between 10% and 37%, depending on the tax bracket). Investment income (including dividends) is subject to an additional net investment income tax of 3.8%, if it exceeds certain thresholds.
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