facebookIf I were to buy an Income stock in the US market do I have to pay tax for its dividends? - Seedly

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Anonymous

16 Jan 2020

General Investing

If I were to buy an Income stock in the US market do I have to pay tax for its dividends?

If yes, how much? what are some income stocks that I should be looking into in the US market?

Discussion (10)

What are your thoughts?

Elijah Lee

Elijah Lee

19 Dec 2019

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

The US market is more of a market for growth stocks.

Having said that, you need to declare that you are not a person with US Indicia in order to be eligible for the rate of 30% withholding tax. You can do this via the W8-BEN form, and hand it to your broker for processing. The dividends you receive in your account after crediting have already factored this 30% in.

Yes. It would be 30% for the dividend distribution. It would be better to invest in local for dividend stocks. Usually US, go for capital gain instead, but if the stock does give dividend, take it as bonus then.

Yes you do. It's a 30% withholding tax...

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