Do we need to pay taxes in Singapore for overseas investments such as ETFs and stocks? - Seedly
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Anonymous

Asked on 05 Jan 2020

Do we need to pay taxes in Singapore for overseas investments such as ETFs and stocks?

I had invested in overseas ETF and stocks. I know that capital gain is tax-free in SG, but what about dividends received from overseas ETF/Stock, do we need to pay tax for it? If yes, are the tax rates the same?

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Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered on 07 Jan 2020

If I understand you correctly, nope, it is not paid out of your pocket. Your dividends will be net of it because your broker will settle it

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pat
pat
Level 7. Grand Master
Answered on 14 Jan 2020

If there are any tax to be paid, the firm will settle for you with your dividends

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👍 0
Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 14 Jan 2020

No need to pay tax for it.

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👍 0
Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 14 Jan 2020

No you do not need to file taxes. All dividends you received are post-tax.​​​

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Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 13 Jan 2020

Hi there, I only invest in SG & HK markets, so from what I know, we don't have to pay tax there. However, for US stocks, you would have to pay a 30% withholding tax on the dividends received.

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I have an account with AutoWealth, which devises a portfolio of NYSE listed ETFs for me. From my account, I saw that there is the dividend witholding tax, which deducts 30% of the gross dividend amount. Therefore the dividend received is already after tax deduction so you do not have to pay for it.​​​

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Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 13 Jan 2020

Yes, however the dividend inflows will be automatically taxed before they reach your bank account

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 07 Jan 2020

Overseas dividends will depend whether the foreign countries mandate withholding tax and the existing, if any, tax treaty between Singapore and foreign investors.

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Depends on which overseas ETF/stock you talking about. US stocks/etfs will have 30% tax on the dividends while hong kong stocks does not have any dividend tax etc.

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 05 Jan 2020

Depends on where the stock/etf counter is located. Dividends from US listed stocks are subject to 30% withholding tax. I believe UK or Irish domiciled are 15%. Not sure about stocks listed in other markets.

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Nicholes Wong
Nicholes Wong

05 Jan 2020

Singaporeans dont get taxed on UK stocks/ETFs dividends as we have tax treaty with them (except property company). Ireland have tax treaty with the US which reduced the US dividends tax from 30% to 15% but we dont actually get dividends tax from the UK side. Hence it is better for us to buy ireland domiciled ETFs with US stocks like S&P 500. So if you were to buy UK stocks, there is no tax on the dividends.
Rishi Ramchandani
Rishi Ramchandani

08 Jan 2020

What about UK REITS? I am under the impression that UK REITS dividend payouts are taxed.