-
JPMorgan US Equity Premium Income Active ETF (JEPI)
-
JPMorgan Nasdaq Equity Premium Income Active ETF (JEPQ)
Q: Hi 5i Team
What would be the tax implication of holding these two etf on non-register account? Are they both subject to the 15% witholding tax and if they are is it better to keep it in a USD account to avoid currency risk and better liquidity?
What would be the tax implication of holding these two etf on non-register account? Are they both subject to the 15% witholding tax and if they are is it better to keep it in a USD account to avoid currency risk and better liquidity?
5i Research Answer:
Both trade in C$ and will pay distributions in C$. The payments will be in a combination of dividends, capital gains, and return of capital. But we do not have the breakdown yet as the funds are so new. There will be withholding taxes on the dividend component of these. With trading in C$ we would prefer them in a C$ account. Note they are very small right now and we would not endorse them until they have grown in assets and we have seen how performance has shaped up over time.