# Tax Treatment of European Accumulating ETFs?



## fraa (15 March 2016)

Hello,

Saw some "accumulating" etfs over in Europe which do not pay distributions from the underlying but instead automatically reinvest it back into the fund.

Example

https://www.justetf.com/uk/etf-prof...cy-accumulating&isin=IE00B5BMR087&from=search

My question is - how does the ATO treat this ? Does it treat it as if you have participated in a DRIP ? Or is the reinvested funds taxed as CGT when you later sell the fund ? 

Googled and found nothing so wondering if someone else have bought similar etfs for a longer term investment.


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