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Anonymous

08 Jan 2023

Stocks

Bonds

Are US bonds taxable like Us stocks dividends?

Also i found that Singtel have bonds that pay 7.35% but are wholesale bonds. There are however aviable on FSMone. So does that means i can buy it?

Also are thers any good platforms i can use to buy bonds?

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You could look at bonds ETFs or Preferred Notes on the US exchanges if your brokers provides access.

Billy

08 Jan 2023

Development & Acquisitions Manager at Real Estate Private Equity

1) It depends. take a look at this prospectus for a Microsoft 4.5% bond: http://www.oblible.com/Prospectus/www.oblible.c... on page 15:

"

The 30% U.S. federal withholding tax will not apply to any payment of interest on the notes under the “portfolio interest rule”; provided that:
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either (a) you provide your name and address on an Internal Revenue Service (“IRS”) Form W-8BEN (or other applicable form), and certify, under penalties of perjury, that you are not a U.S. person as defined under the Code or (b) you hold your notes through certain foreign intermediaries and satisfy the certification requirements of applicable U.S. Treasury regulations. Special certification rules apply to non-U.S. holders that are passthrough entities rather than corporations or individuals. "

2) Regarding Singtel's 7.35% bond, based on the bond factsheet here: https://www.bondsupermart.com/bsm/bond-factshee... it states minimum investment amount is USD1,000, so it seems available to the public.

3) It's denominated in USD but as per image attached, they highlighted there will not be any withholding taxes and if there is, you will get back 7.35% after taxes irregardless

4) Also note that the price of the bond has increased which brings down the Yield-to-Maturity to approximately 5% based on current prices, so don't be fooled by the 7.35%. Something is too good to be true until it isn't.

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