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Anonymous
E.g. stocks like KO, DIS, and is it ever worth it compared to buying SG dividend stocks which 1) there is no taxation on dividends 2) less costs involved?
If anyone could provide some experience in this area it would be greatly appreciated thanks!!
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Tan Kel Vin
06 Jun 2020
Financial YouTuber at Kelvin Learns Investing
You can't really escape the 30% withholding tax on dividends if you are buying US stocks. But if you are buying index funds, you can buy Ireland Domiciled Funds, which only charges 15% withholding tax.
For example, fund that tracks S&P performance, instead of VOO, you could buy VUSD that is domiciled in Ireland.
For a fund that tracks tech companies, instead of XLK, you could buy SXLK that is domiciled in Ireland.
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Jonathan Chia Guangrong
06 Jun 2020
SOC at Local FI
The 30% withholding tax is applied to non US residents so its unavoidable. If you really want to buy...
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It is US who imposed the 30% wht, singapore itself does not imposed tax on foreign-sourced investment income.
Best way to optimise buying dividend paying US stocks?
Buy stocks that keep growing their dividends like Dividend Kings etc
Buy stocks only at a hefty discount margin & at a high dividend yield to offset inevitable 30% wht
Buy stocks via brokerages that dont charge dividend-handling fees