What are the primary tax implications of owning mutual funds that invest in foreign securities?
Dividends and interest earned on foreign securities may be subject to withholding tax by the country from which they were paid. If you own a mutual fund that held foreign securities that paid dividends or interest, the mutual fund may have paid foreign taxes in respect to those securities. As a shareholder of that mutual fund you may be able to claim a credit or a deduction on your federal tax return for a portion of those foreign taxes. The Dividends and Distributions section reports the gross amount of the dividends you received (including the foreign tax amount) and the amount of foreign tax (if any) that you may be able to claim as a credit or a deduction. For additional 2010 foreign tax credit pass–through information for Fidelity funds, in early February you will be able to see the Important Information for Corporate Investors about Foreign Tax Paid letter on the Fidelity Fund–Specific Tax Information page of Fidelity.com You may also want to consult your tax advisor or refer to
Dividends and interest earned on foreign securities may be subject to withholding tax by the country from which they were paid. If you own a mutual fund that held foreign securities that paid dividends or interest, the mutual fund may have paid foreign taxes in respect to those securities. As a shareholder of that mutual fund you may be able to claim a credit or a deduction on your federal tax return for a portion of those foreign taxes. The Dividends and Distributions section reports the gross amount of the dividends you received (including the foreign tax amount) and the amount of foreign tax (if any) that you may be able to claim as a credit or a deduction. For additional 2008 foreign tax credit pass–through information for Fidelity funds, in late January you will be able to see the Important Information for Corporate Investors about Foreign Tax Paid letter on the Fidelity Fund–Specific Tax Information page of Fidelity.com You may also want to consult your tax advisor or refer to IR
