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Personal Investments • Is there withholding tax on intl bonds?

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I know (or I think I know) that if an investor holds an intl equity fund such as VXUS, some of the dividend income is withheld by foreign governments. And for this reason, it often is advised to hold such funds in taxable accounts.

Is the same true for intl bond funds? Will a portion of bond interest be withheld? If yes, does that favor holding such funds in a taxable account?

FYI I’m asking in reference to the iShares IGOV ETF, an international treasuries ETF: https://www.ishares.com/us/products/239 ... y-bond-etf
The Vanguard fund (BNDX) gets mentioned in their annual document about funds that qualify for the foreign tax credit. Is that what you mean?

See link: https://investor.vanguard.com/content/d ... s-2024.pdf

I do hold international bonds, but they are in my tax deferred account, so I've not bothered to look into the foreign tax credit.

Regards,

Statistics: Posted by retired@50 — Mon Jun 24, 2024 7:26 am — Replies 2 — Views 319



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