Zaydennnn

01 Dec 2021

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I’m currently invested in US stocks and my goal is to live of dividends 20 years later and let the compound interest take its course but the tax on dividends from us stocks are extremely high like 30%

Is there a way to achieve my goal and avoid US tax?

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1M45

01 Dec 2021

Definitely able to achieve your goal. Depend how much you put in and what you buy.
Cannot escape 30% tax

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Tan Choong Hwee

01 Dec 2021

Solutions Specialist at Providend

You can't avoid paying 30% dividend withholding tax if you invest in individual US stocks or US listed ETFs. There is also 40% estate tax for the amount above USD60k threshold when you pass on.

To reduce dividend withholding tax, you can invest in Ireland domiciled S&P 500 ETF, such as CSPX listed on LSE. Dividend withholding tax is reduced to 15%.

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