Exchange-traded fund (ETF) investors will want to know when Vanguard tax statements for 2022 are going to be available.
A tax statement can be very useful because it provides Australian taxpayers in Vanguard ETFs with the tax information they need to fill in their tax return.
Every year, the ETF providers like Vanguard issue an annual tax statement that will have each piece of information needed to enter on a tax return. Each ETF (and managed fund) will issue one of these statements.
For example, if someone was invested in Vanguard Diversified High Growth Index ETF (ASX: VDHG) and
Vanguard Australian Property Securities Index ETF (ASX: VAP) then they’d receive two different tax statements.
Expected date for the 2022 Vanguard tax statement
Vanguard said in an important notice about when it expects to release the information.
The plan for most ETFs is that investors will receive the annual tax statement on Thursday, 18 August 2022.
The information should also be available for the Australian Taxation Office (ATO) pre-fill report function.
Accountants or tax agents can help people with their tax returns.
What information is on there?
There will be a number of different bits of information on the 2022 Vanguard annual tax statement.
Different forms of income are the main things that we need to know so that the numbers can be put into the respective sections on the tax return, including these four areas:
- Income distributed from the ETF
- Franking credits
- Capital gains distributed
- Foreign income
Capital gains can take more work calculating depending on how long they have been held (for longer or less than a year) and if there are previous capital losses to utilise. Capital gains on assets held for longer than 12 months can be halved (which is done on the tax return).
Tax takeaway
All the different parts of the income from the ETF are added to the other forms of taxable income (eg interest from bank accounts, wages, rental income and so on). Taxpayers may need to pay tax on the various forms of income from shares, including dividends from companies.
Tax professionals can assist Aussie taxpayers complete their tax returns if needed, so don’t be afraid to ask for help.
