If an accumulating fund is domiciled in Ireland going by point 5 here
http://www.revenue.ie/en/tax/dwt/leaflets/dividend-withholding-tax-guidelines.html some holders of the fund will be subject to DWT and some will not.
Luxembourg has the same rules.
Does the fund find a way around the DWT if over 50% of holders are exempt from the DWT or how does this work?
When I asked Interactive Brokers if I would still be subject to the full withholding tax amount they replied
“The tax withholding is based on the company that provides the dividend, not on the individual who receives the dividend.”
which would imply that all holders of the fund are subject to the same level of DWT.
But is this the full level or the reduced level of DWT?
Should all brokers ask non-USA residents to fill in the W-8BEN?
For example when I signed up for Interactive Brokers I was asked to fill in one, but not for Saxo.
Does it make a difference that I’ve submitted the form with one broker but not the other, even though I can buy the same ETF through them?
And is DWT treated exactly the same for bonds as it is for stocks?