WIthholding Tax Calculation

wdding

First of all, I want to thank VidasMatelis and other contributors for the great work put in!
I have a question on the withholding tax calculation. I'm using Excel 2016 version. After I set Calc WHT=Yes in the Account table, and WHTPercent=15 in the Symbol table, it seems no witholding value is deducted from my dividend. Is it my setting was wrong? or the feature is not in yet? Thanks!

Regards
Weidong

VidasMatelis

Hi Widong,

Did you also specify "Yes" value for field "Calc WHT" in Accounts table? If no, please do that and then check "DivGen" worksheet to see if "Gen Div WHT" value is calculated for your selected year/symbol.

wdding

Thanks VidaMatelis for the quick response!
I've set CalcWHT=Yes in Account table. While I checked DivGen, it did calculate WHT correctly. But "Gen Div Cash" value is not reflected in the Dividend column in Holdings tab or values in the Dividends tab. I'm not sure if it's deducted from total value or capital gain/loss calculation?

VidasMatelis

Hi,

Holdings tab should show total dividends amount received - before withholding tax is subtracted.
For my explanation I will assume that you are from Canada:
When you receive dividends - you have to pay tax. For US securities in open accounts (and TFSA) there is withholding tax that is automatically subtracted. For Canadian dividends you will get T5 slip at the end of the year and you will pay taxes before Apr 30 of next year. So at the end for any dividend received you will pay taxes and total amount will depend on your marginal tax rate. So it would be not fair to reduce witholding tax from total dividends received for US securities, but not reduce taxes on Canadian securities that paid dividends.
So idea is - Dividends calculation in PS shows total amount of dividends received. And witholding tax there is just additional calculation that does not increase your total portfolio value because it is deducted automatically.

wdding

Hi VidasMatelis, Thanks for the explanations!