Advertisement

Jing Wei

26 May 2020

∙

General Investing

How do I calculate the US withholding tax on dividend?

Assuming S&P500 ETF pay out 3% dividend yield per year.

Withholding tax on dividend is 30%

Percent of tax in terms of investment
= 3% X 30%= 0.9%

According to my calculation, around 0.9% of the investment is paid to US government per year.

Assuming all factors remain the same, is this method of calculation correct?

2

Discussion (2)

What are your thoughts?

Learn how to style your text

Wilson Nid A Break

26 May 2020

Dividends paid out per share * 30%

Reply

Save

Wrong Sean

26 May 2020

To be more precise, you need to factor in the number of shares you have. Or you could 0.7 x the total dividends declared.

The 3% yield could vary according to the market price/price that you bought the shares and the number of shares you got.

Reply

Save

Write your thoughts

Related Posts

If I were to invest in US domiciled ETF, using a roboadvisor or using a RSP, how are US/ Irish dividend withholding tax, other taxes and management fees calculated?

With the 30% withholding tax in US. Would you still look for opportunities for dividend stocks in the US? Or just invest in the US market just for capital gains?

Considering dividends from robo advisors will be subject to a 30% withholding tax due to investment in US ETFs, which robo advisor platform may be able to seek partial reimbursement of these taxes for me?

[US Stocks] - Is it better to buy growth stock rather than dividend stock, since dividend stock has 30% withholding tax?

Does Vanguard 3140.hk get taxed dividend withholding tax even though it is a domiciled ETF in HK? How does this compare to the Lion Infinity Global US 500 Unit Trust?

Related Products

Moomoo Singapore

4.7

489 Reviews

From $0

MINIMUM FEE

0.03%

TRADING FEES

Custodian

STOCK HOLDING TYPE

Saxo Markets

4.5

961 Reviews

CMC Invest

4.8

142 Reviews

Related Posts

If I were to invest in US domiciled ETF, using a roboadvisor or using a RSP, how are US/ Irish dividend withholding tax, other taxes and management fees calculated?

With the 30% withholding tax in US. Would you still look for opportunities for dividend stocks in the US? Or just invest in the US market just for capital gains?

Considering dividends from robo advisors will be subject to a 30% withholding tax due to investment in US ETFs, which robo advisor platform may be able to seek partial reimbursement of these taxes for me?

[US Stocks] - Is it better to buy growth stock rather than dividend stock, since dividend stock has 30% withholding tax?

Does Vanguard 3140.hk get taxed dividend withholding tax even though it is a domiciled ETF in HK? How does this compare to the Lion Infinity Global US 500 Unit Trust?

Advertisement