Asked by Anonymous
Asked 2w ago
Am PR, holding US stocks via Stan Chart. 1) Regarding 30% withholding tax on dividends, when we receive dividends is it already net of the 30% tax? 2) If not yet, how do I pay that 30% dividend tax? 3) Any fees/taxes I have to pay when I sell a stock?
Yes, SCB will credit your FCY Settlement Account with the dividend net of the 30% withholding tax.
SCB handles it.
SCB has different fee schedules for Priority Banking customers vs Personal Banking customers. Minimum brokerage fee applies for Personal Banking customers. SEC also charges a fee for sell trades in US markets.
For US capital gains tax, I don’t think it is applicable for foreigners.
Haven’t sold any stock yet. Only had acquisitions of companies that I have stock in.
Hi Anon! Hope I can answer your questions below.
1) Regarding 30% withholding tax on dividends, when we receive dividends is it already net of the 30% tax?
Yes, if your SCB is a custodian brokerage, you can simply know that they will help you deal with the 30% witholding tax which is already deducted on thier side before processing it for you. You should have declared this in the W8-BEN form which you filled up to state that you are a non-US tax resident.
2) If not yet, how do I pay that 30% dividend tax?
So you won't have to process the 30% tax on your end.
3) Any fees/taxes I have to pay when I sell a stock?
Yes definitely, trading fees when you buy or sell a stock. It seems to be 0.25% per trade for US market. There are different rates for different countries and for SCB you should be able to find the rates here: https://www.sc.com/sg/investment/online-trading/