Our Benefits
Main reasons for you to consider IncomeShares ETPs
Potential Tax Advantages
IncomeShares ETPs may be more tax-efficient for non-US investors.
- Keep More of Your Income
Non-US investors can enjoy 0% withholding tax on distributions from Ireland-domiciled ETPs like IncomeShares.
Unlike US-based ETFs, which deduct up to 30% withholding tax (WHT) at source, Irish-domiciled ETPs let you keep your income gross—no tax forms, no waiting for refunds.
- Hassle-Free Tax Reporting
There’s no need to file forms with US tax authorities with Irish-domiciled ETPs. Simply report the income as part of your home-country tax filings.
Tax obligations vary by country. Always consult a professional to understand your specific situation.
| Aspect | IncomeShares ETPs (Domiciled in Europe) | US 40 Act ETFs |
|---|---|---|
| Domicile | Ireland | United States |
| Withholding Tax on Interest Payments / Distributions (at Investor Level) | Typically 0% withholding tax on interest distributions to non-US investors, benefiting from US-Ireland tax treaty (subject to the tax laws of the investor's country). | Up to 30% withholding tax on distributions to non-US investors, unless reduced by a tax treaty (if applicable). |
| Tax Reporting Requirements | Generally simplifies tax reporting for non-US investors, as EU-domiciled ETPs usually do not require filing US tax forms. | Non-US investors must file W-8BEN to potentially reduce the 30% withholding tax rate. |
| Applicability of US Tax Treaties | Benefits from the US-Ireland tax treaty, reducing withholding tax on US dividends to 15%. No additional tax on interest payments. | Withholding tax on dividends and interest can be reduced by a tax treaty (if investor's country has one), but default withholding remains at 30%. |
| Tax Efficiency for Non-US Investors | May offer tax advantages for non-US investors, as distributions are classified as interest payments and are typically free of withholding tax. | Generally less tax-efficient for non-US investors, due to the 30% withholding tax on both dividends and interest distributions. |