Anyone knows whether the dividends for US stocks are net of the 30% tax? - Seedly
 

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Asked by Anonymous

Asked on 10 Jul 2019

Anyone knows whether the dividends for US stocks are net of the 30% tax?

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?

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Shaun Wq Lim
Level 6. Master
Answered on 10 Jul 2019
  1. Yes, SCB will credit your FCY Settlement Account with the dividend net of the 30% withholding tax.

  2. SCB handles it.

  3. 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.

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered on 10 Jul 2019

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/

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