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Message
re: XOM or RDS-A
Posted on 1/16/16 at 8:44 am to BayouSizzle
Posted on 1/16/16 at 8:44 am to BayouSizzle
quote:
Key difference is B is permanent establishment in The Netherlands and its dividends tax is key difference. They trade at a delta, and delta is primarily the result of this tax.
RDS-A has the dividend tax withheld. This is the second time recently you've attempted to spread this misinformation. Please stop.
quote:
As easy as A, B see?
Royal Dutch Shell has two classes of share listed on the London stock exchange. One has the ticker "RDSB", and you'll find this ticker quoted in articles here on the Motley Fool. The other class of share has the ticker "RDSA".
The shares carry identical economic rights, but their cash dividends come with different tax implications. The A shares have a Dutch source for tax purposes and are subject to Dutch dividend withholding tax (15%), whereas the B shares have a UK source for tax purposes and are not subject to any withholding tax. Also, cash dividends on the A shares are paid, by default, in euros; cash dividends on the B shares are paid, by default, in pounds sterling.
I've heard of many novice investors over the years -- and some more experienced ones! -- who inadvertently bought the A shares when they'd intended to buy the B shares.
Even if you have RDS-A shares you can write the foreign taxes paid off on your tax return, but if its held in an IRA then you're screwed. US investors should stick with RDS-B in my opinion.
Posted on 1/16/16 at 8:47 am to jturn17
I'm a little confused as to why U.S. based Shell employees are forced to buy A shares as part of the stock plan.
Posted on 1/16/16 at 10:31 am to jturn17
Good post. Main thing is if RDS is in an IRA/401k you want B shares. If not in a protected account the dividend tax goes to the Netherlands with A shares and is written off on US taxes. With B shares you'd pay US dividend taxes only.
Posted on 1/16/16 at 10:55 am to jturn17
quote:
RDS-A has the dividend tax withheld. This is the second time recently you've attempted to spread this misinformation. Please stop.
Apologies, I mistakenly flipped B and A. I posted at beer #6 while changing Pandora stations.
"...attempted to spread this misinformation" (a bit too serious here, my man...relax...no harm intended).
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