facebookDoes anyone have any reviews on FSM RSP? - Seedly

Anonymous

16 Nov 2019

General Investing

Does anyone have any reviews on FSM RSP?

Planning to RSP $100 into S&P 500. Any advice? Heard that tax needs to be paid. Thanks!!

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Elijah Lee

15 Nov 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Dividend withholding tax of 30% needs to be paid if you are RSP-ing into anything that's listed on a US exchange, after you declare with the W8-BEN form that the beneficiary owner of the amount received from U.S. sources is not a U.S. person.
You should also examine your transaction costs to see if it makes sense. You will likely incur custodian costs as well.

If you were RSP-ing into a UT that tracks S&P 500 (e.g. Lion Infinity Global Stock Index), then W8-BEN is not needed, and there should be no transactional costs nor platform fees.

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