As an U.S. investor
RDS.B shares are UK based and therefore no foreign tax withheld, if held in a retirement account such as a ROTH IRA, no taxes due. However, if RDS.B shares are held in a brokerage account you are liable to pay your taxes on dividends received.
RDS.A shares are Dutch based and carries a 15% foreign tax that can be loop-holed by utilizing the U.S. Foreign Tax Exemption agreement as long as the RDS.A shares are held in a brokerage account. If held in a retirement account you loose the ability to use the Foreign Tax Exemption.
If RDS.A shares are held in a retirement account the 15% Dutch tax can be nullified if you take advantage of the Shell Scrip Programme, you have to sign up through your Brokerage and unfortunately not all Brokerages participate in the program.
In short as a U.S. investor it's easier to own RDS.B shares and receive the dividends in cash.
If you decide to drip the divi's you'll end up with RDS.A shares complicating matters whether held in a retirement or non-retirement account. As an investor your foreign tax loop-holes are the RDS Scrip Programme and the U.S. Foreign Tax Exemption, it just depends on your Brokerage and what kind of account used.
RDS.B shares are UK based and therefore no foreign tax withheld, if held in a retirement account such as a ROTH IRA, no taxes due. However, if RDS.B shares are held in a brokerage account you are liable to pay your taxes on dividends received.
RDS.A shares are Dutch based and carries a 15% foreign tax that can be loop-holed by utilizing the U.S. Foreign Tax Exemption agreement as long as the RDS.A shares are held in a brokerage account. If held in a retirement account you loose the ability to use the Foreign Tax Exemption.
If RDS.A shares are held in a retirement account the 15% Dutch tax can be nullified if you take advantage of the Shell Scrip Programme, you have to sign up through your Brokerage and unfortunately not all Brokerages participate in the program.
In short as a U.S. investor it's easier to own RDS.B shares and receive the dividends in cash.
If you decide to drip the divi's you'll end up with RDS.A shares complicating matters whether held in a retirement or non-retirement account. As an investor your foreign tax loop-holes are the RDS Scrip Programme and the U.S. Foreign Tax Exemption, it just depends on your Brokerage and what kind of account used.