Industry Updates

Austrian investors in 31 HSBC AM ETFs face additional tax bill

The firm plans to reinstate tax reporting in 2024

Jamie Gordon

HSBC Asset Management

HSBC Asset Management has warned Austrian investors in 31 ETFs could face higher taxation on their investments owing to a lapse in the firm’s tax reporting in the country.

In a shareholder notice, HSBC AM said “an issue has arisen” with the firm failing to submit its tax reporting with Austria’s Oesterreichische Kontrollbank by the cut-off date of 31 July.

This means Austrian investors with holdings in several of its ETFs “may be subject to higher taxation on the value of their holdings” at the end of the year.

The ETFs concerned are sub-funds of HSBC AM’s Irish Collective Asset management Vehicle (ICAV) platform and are therefore subject to Irish tax regulation.

HSBC AM said in a statement: “The company sincerely apologises for any inconvenience that this issue may cause. The company intends to reinstate the annual tax reporting in Austria for the 2024 tax year.

“This issue will affect certain Austrian investors depending on individual tax circumstances.”

It added there are ways to reclaim tax in Austria by undertaking tax filings with Austrian authorities.

The news follows a busy year for HSBC AM, with the firm launching a climate tech ETF in October and expanding its Shariah-compliant range with three new products the month before.

In April, it became the first issuer to offer ETF and unlisted share classes within an Irish fund umbrella after it converted four global bond index funds to ETFs.

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