By the French government. Starting January 14. It will be 0.2% of the value of the purchases. It applies to all French companies with market value exceeding €1B.
Not just that, if you bought TOT for any of your IRA accounts, they (your brokers) withheld 30% of your dividends from TOT and since they are in IRA accounts, you will have no way to deduct them for your income taxes. Therefore, it basically decrease your yields from TOT by 30%. Also, this dumb 0.2% charge is on both buy and sell orders, that means you will have to pay it twice, unless you buy and sell TOT on the same trading day. With just 100 shares of TOT, this 0.2% will equates to about $ 10.57 (last Friday TOT's closing price of 52.88) which will be more than most trade commission. These French politicians were getting desperate in France since they are now in a pretty bad recession and they are trying to find a quick fix by ripping off the American. They also tried to force their own people to buy only things that were made in France. I sold ALL my TOT shares and started buying US oil company stocks only. Another very interesting tidbit I want to share with everybody is:
If you buy RDS.A, your brokers will withhold 20% from your dividends, but if you buy and hold RDS.B, there is no withholding. If you own RDS.B, you have a choice to receive your dividends in either cash or in RDS.A shares, make sure you get only cash. You can always reinvest your RDS.B dividends via a DRIP program offered by E-Trade or Fidelity to buy more shares. ScottTrade does not offer a DRIP. J
Thanks for the info. I was thinking %5 dividend, PE of 8% at $52 to possibily buy 100 Shares. But I forgot about it being a foreign company and the taxes associated with it until you brought it up
I have TOT in my Ameritrade account which has been withholding 15% of the dividends. The same is true with Scottrade. Ameritrade said that the 0.2% tax on the purchase of TOT, not on the sale. Indeed, TOT should not be held in IRA accounts.
Don't worry about dividend withholding issues. That is a minor issue relative to the fact that the stock price will double over the next 3 years. This stock is in a technical breakout from a 5 year consolidation. Hold on to your shares and enjoy the ride up.
Sentiment: Strong Buy
Why do you think that TOT is ready for a breakout?
The SP has performed terribly compared to other oil companies that I own or track.
I wish I had sold it back when I sold Eni SpA (E).
The TOT SP has floundered for most of the time I have owned it, and France withholds far too much in taxes.
This company just can't seem to do anything right.
I just read a NR on Fidelity Investments that TOT is willing to forward an offer from Barealis for TOT's 56.86% majority interest in Belgium's Rosier S.A. for E200 per share.
I don't understand why they are accepting that price when the closing price on Wednesday was E212.44?
The price hasn't been as low as E200 since before the middle of December.
Does anyone know why TOT would sell for a lower price than the EUR 211.38 that Barealis will have to pay to acquire the rest of the shares in a mandatory public takeover bid?
Before you tell me to sell the shares if I am so unhappy with them, I plan to sell my shares that I didn't sell in December, after I decide whether or not to wait until after the ex-div date in March.
Good luck !
I encourage you to read http://en.wikipedia.org/wiki/Financial_transaction_tax rather than rely on random strangers on the internet. There is no mention of "itlay" or "italy" in that article, and the tax went into effect in France in January.
I would assume -- haven't been able to confirm -- that the transaction tax (which is about 10 CENTS per share at current prices) is treated for tax porpoises the same as commissions: it merely adds to your cost basis. So, it's not deductible like withholding, but it still gets accounted for at capital gains time.