When dividends on foreign shares are paid out, withholding tax is usually paid twice: once for the foreign tax and once for the local tax. Unfortunately there’s only one “tax” field in the form.
I also tried to register local taxes via a separate line, but we can’t submit negative values as a dividend.
So… how can we split the local and foreign tax?
This distinction is important because only the local tax needs to be reported on a tax return.
There is no build in possibility since PP doesn’t tread taxes other than as one tax payment.
Thank you for your reaction. This confirms my findings.
I’m considering an additional registration via “Taxes”, but that’s obviously a lot of additional work and the direct link between the foreign and local tax gets lost too.
Portfolio Performance isn’t a tax tool. You already discovered the only possible way (maybe with an additional comment).
Just to be clear, I really like PP and find it very useful to manage my portfolio.
But… taxes have an important impact on dividends and indirectly on the stock performance.
Brokers distinct foreign and local taxes, so it simply would be useful if PP would support this too.
Understandable, but only from your perspective.
PP works for multiple countries, therefore PP can’t handle every country’s local tax rules.
Since PP treats tax as whole there is no impact on performance calculation because:
-10 as such equals -5 (+) -5