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Old 09-09-2018, 12:27 PM   #111
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kehyi4's Avatar
Join Date: Aug 2010
Posts: 1,318
Sorry for my newbie question.
How is autoreinvestment of dividend implemented to deal with withhold tax of 30% for SG investors?
Reinvestment is done by the fund - the fund's income is pumped into its own NAV (and used to buy more shares that make up the fund). Investors do not get additional units (coz it's not DRP) but each IWDA unit that they already own becomes more valuable (due to increased NAV)

Dividend withholding tax is also paid by the fund out of the fund's income - investors don't need to worry about it as the fund takes care of it. btw, it's 15% for IWDA due to tax treaty between US and Ireland where IWDA is domiciled
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