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FWIW - all companies listed on the London Stock Exchange are PLC's - Publicly Limited Companies. This is distinct from and not related to US listed LLC's.
I AM NOT A TAX EXPERT!
As you are well aware the IRS wants their money. When I hold a foreign entity in my taxable brokerage account the dividend payments I receive are reduced by the percentage amount of the foreign tax rate. You may/may not get this back as a foreign tax credit at tax filing time depending on all the usual tax nonsense.
In my IRA account (at Fidelity at least) they do not withhold the tax and all declared dividends are added to my balance.
Actually this is something I'd be guessing at - call it intelligent guessing, but still nothing I could say with 100% certainty.
@Mark looks like he's right on the money - that's my understanding as well about PLC - sort of like Corp. in US. That seems to say that there's no especially complex tax stuff like K-1s.
Note that the particular security is an ADR. In essence, a custodian holds shares of Dutch Shell PLC, and you're buying shares of what's essentially a safe deposit box of those shares. My guess is that this doesn't change anything in terms of taxes.
Comments
I AM NOT A TAX EXPERT!
As you are well aware the IRS wants their money. When I hold a foreign entity in my taxable brokerage account the dividend payments I receive are reduced by the percentage amount of the foreign tax rate. You may/may not get this back as a foreign tax credit at tax filing time depending on all the usual tax nonsense.
In my IRA account (at Fidelity at least) they do not withhold the tax and all declared dividends are added to my balance.
This article may be of some use:
http://www.dividend.com/dividend-education/everything-investors-need-to-know-about-foreign-dividend-stocks/
@Mark looks like he's right on the money - that's my understanding as well about PLC - sort of like Corp. in US. That seems to say that there's no especially complex tax stuff like K-1s.
Note that the particular security is an ADR. In essence, a custodian holds shares of Dutch Shell PLC, and you're buying shares of what's essentially a safe deposit box of those shares. My guess is that this doesn't change anything in terms of taxes.