Stock split tax implications for non-US shareholders

[Tslynk67]

Shares turned-up at KeyTrade in Belgium, options not yet adapted though... (options-chain is though)

 

[Matias]

Saturday a bit after feeling rich for a little bit (shares split and non-split price) the rest of the information was updated as well. Sunday came the updates of my average purchase price however nothing yet in the transactions log. When checking this morning I noticed the transactions now include entries for split deposit of the new shares (5) and split withdrawal for the old share (1), so no naming of dividend in the transaction log, identical terms to the Apple share split.

What is your broker? Nordnet also says split, so far so good..

edit: I now noticed, that you also have Nordnet.

 

[Kpls]

What is your broker? Nordnet also says split, so far so good..

Also Nordnet Finland. Seems good so far, zero price for the new shares and considering dividend normally is taxed immediately I looks good.

 

[Matias]

Just called the Finnish taxation office. Yes, over here it appears to be taxable based on the average price of the "first available exercise date". Also there's a property transfer tax you have to pay (1.6%). 15% of the gains is non-taxable. Exact instructions here.

What I didn't get a clear answer for is whether the value of the new stock is based on the Friday average (you get the shares on Friday) or Monday average (you can't actually sell the shares until Monday). If the former, it's worth selling everything now and buying it back later; if latter, it's worth just paying the tax and keeping the shares. I may have to talk to my broker as well.

Of course it counts as regular capital gains, so you have the rest of the year to figure out how to pay for it (and you could just sell some bad stock and use those losses to offset the gains).

Lets hope taxation officials understood it wrong. The article you referenced points to a situation where company A pays dividends as company B shares..That is of course taxable income.

 

[Kpls]

Lets hope taxation officials understood it wrong. The article you referenced points to a situation where company A pays dividends as company B shares..That is of course taxable income.

Not saying the Finnish tax office/law is always logical, but in a logical way of looking at this there is a big difference between a company paying money or equivalent (e.g. shares it holds) and by that act reducing it's capital/value and a split where there is no difference in the value of the company.

 

[Matias]

Not saying the Finnish tax office/law is always logical, but in a logical way of looking at this there is a big difference between a company paying money or equivalent (e.g. shares it holds) and by that act reducing it's capital/value and a split where there is no difference in the value of the company.

Yes.

I don’t think that there will be taxable income on this. I’ve also seen response (in private Fb group) from tax official where she says that according to her understanding this is not taxable.

As I wrote, I believe the tax official that you spoke with misunderstood you and thought that company is paying dividends as a share of a different company (which is the situation what is described in the instructions that you referenced) or is giving away its old shares.

edit; sorry I mistakenly thought that @Ecyrd post Stock split tax implications for non-US shareholders
was yours.

 

[avoigt]

Hi all, I've been following this thread for a couple of weeks as I was in a similar situation (Tesla and Apple shares, bought in Germany). 2 points:
I use Postbank and all my shares now show the 'after-split' volumes, and no tax deductions. At least not yet... ;-)
Secondly, thank you all for being so open and sharing your experiences - it certainly reassured me in terms of the upcoming split(s). In these times, no matter where you look, it's hard to find such examples of friendly cooperation - it was very refreshing to see in this forum.
Thanks!

It's a great team that has been build over many years. It needs to be said we had heavy fights with trolls and haters who did their best to spoil it. Luckily we have many mature honest people around who dismantled them. It was a fight ongoing for a long time and for a while now (no surprise) all FUDsters are quiet, silent, and hiding somewhere under a rock. I have no doubts they will come back once they find an opportunity.

Waiting for my account to show the correct numbers in Germany hopefully the day after tomorrow.

It hurts to see $ disappear in the account from one day to the other although another massive day gain of +12% happened

 

[Tslynk67]

I asked yesterday about the options being adapted and my bank (Keytrade Belgium) said it would be today - I suspect around 14:45, same time as the shares popped-up yesterday.

Didn't stop me trading the new option-chain yesterday tho'.

 

[bavarian_owner]

Just for your information.
My stocks are at bank ING-Diba germany. No problems at all. Value and stock count were correctly adjusted in time.
I also received a document that states the following:

Die Gesellschaft hat einen Aktiensplit durchgeführt. Wir haben Ihrem
Depot die Splitaktien eingebucht.
Die Einbuchung erfolgte steuerneutral. Das heißt, die ursprünglichen
Anschaffungskosten werden auf die neuen Bestände aufgeteilt.
Das Splitverhältnis lautet 1:4 auf Ihren Bestand vom 28.08.2020 .


So no tax implications, according to above except of the document.

I am happy. Worked as expected.

 

[Shtolik]

Also Nordnet Finland. Seems good so far, zero price for the new shares and considering dividend normally is taxed immediately I looks good.

Degiro has handled it as selling and buying transaction I'll be calling tax office, but I'm afraid there is no way out of paying taxes on the gainz.
Time to move to Nordnet before Tesla split again

 

[Matias]

Degiro has handled it as selling and buying transaction I'll be calling tax office, but I'm afraid there is no way out of paying taxes on the gainz.
Time to move to Nordnet before Tesla split again

I think that is more important to call Degiro so that they handle it correctly as split?

Tax office only sees, what your broker reports them. Degiro should correct this.

 

[Shtolik]

I think that is more important to call Degiro so that they handle it correctly as split?

Tax office only sees, what your broker reports them. Degiro should correct this.

I've written first to degiro of course. Here is their reply:

[Quote="Degiro|]
In our tax report which you will find available on your DEGIRO account, we can unfortunately not take corporate actions such as stock split in to consideration.

We do not report directly to the Finnish tax authorities, we report under CRS. It is therefore the client's responsibility to report to the tax authorities.

As DEGIRO is an execution only broker, we are not allowed to give any advice and we are no tax expert. We therefore have to refer you to a tax adviser regarding advice on how to report to the tax authorities.

You can read more about DEGIRO and tax on our tax page here.
[/quote]

But after talking with tax office representative we agreed that "they only tax if you sell the shares", so we kinda agree that since it's not me who sold it, and transaction marked as "Split" i may just not report it as a selling when filling my tax card. I wish i had it in writing. But that's what i'm [not] going to do. There are enough transaction where i was actually selling shares this year - so they'll get their tax anyway from me