Muni ETfs and witholding tax

[luisHK]

Hi

I've noticed the term "tax Free" besides some muni bonds ETFs, does that mean there is no witholding tax on the distributions from those ETFs ?
if there is still a witholding tax, what tax advantage do they entail, if any, especially to non US investors?

Thanks in advance for all replies

 

[Obelixtrader]

Hi

I've noticed the term "tax Free" besides some muni bonds ETFs, does that mean there is no witholding tax on the distributions from those ETFs ?
if there is still a witholding tax, what tax advantage do they entail, if any, especially to non US investors?

Thanks in advance for all replies

Yes there is still witholding tax

 

[luisHK]

Ok, thanks Obelix for your prompt reply.
That's the only tax advantage I really cared about but what's the tax free part in those ETF ?

 

[zdreg]

correct, there is withholding for non-US residents. tax free is for US residents
no advantage to non-residents.

 

[luisHK]

Oh, ok, thanks Zdreg for the extra input, at least the "Tax free" bit makes more sense now, although I still need to work on the bond part of the portfolio.