Dividends

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Dividends

Postby avbferry » Tue Jul 02, 2013 10:24 am

Hi all,

Recently got paid dividends and was subject to a 30% tax (I am a non-US resident). I noted that my broker has this dividend reinvestment program ("If you are not enrolled in the Dividend Reinvestment Program, the amount shown below has been credited to your account.")

Does it mean that if I enrol into the program, I can avoid the 30% tax?

Thanks!
avbferry
 
Posts: 70
Joined: Tue Jan 03, 2012 10:09 am

Re: Dividends

Postby KyleAAA » Tue Jul 02, 2013 10:27 am

Totally depends on the tax laws where you live. In the US, this would NOT exempt you from tax.
KyleAAA
 
Posts: 5367
Joined: Wed Jul 01, 2009 6:35 pm

Re: Dividends

Postby avbferry » Tue Jul 02, 2013 10:31 am

KyleAAA wrote:Totally depends on the tax laws where you live. In the US, this would NOT exempt you from tax.


My country does not have a treaty with the US. What are the implications?
avbferry
 
Posts: 70
Joined: Tue Jan 03, 2012 10:09 am

Re: Dividends

Postby KyleAAA » Tue Jul 02, 2013 12:11 pm

avbferry wrote:
KyleAAA wrote:Totally depends on the tax laws where you live. In the US, this would NOT exempt you from tax.


My country does not have a treaty with the US. What are the implications?


I don't understand. Where do you live, what country are you a citizen of, what country are the investments in, and who exactly is withholding the 30% tax?
KyleAAA
 
Posts: 5367
Joined: Wed Jul 01, 2009 6:35 pm

Re: Dividends

Postby avbferry » Wed Jul 03, 2013 12:08 pm

KyleAAA wrote:
I don't understand. Where do you live, what country are you a citizen of, what country are the investments in, and who exactly is withholding the 30% tax?


Apologies of the lack of details.

I live in Singapore. Am a resident there. I invest in Vanguard Total World Stock Idx Fd (ETF). The US witholds that 30% tax.

Would greatly appreciate your help on this.
avbferry
 
Posts: 70
Joined: Tue Jan 03, 2012 10:09 am

Re: Dividends

Postby CABob » Wed Jul 03, 2013 1:04 pm

I live in Singapore. Am a resident there. I invest in Vanguard Total World Stock Idx Fd (ETF). The US witholds that 30% tax.
So I assume from your post that you are a US citizen, correct?
Bob | An investment in knowledge pays the best interest. -- Benjamin Franklin
User avatar
CABob
 
Posts: 2949
Joined: Sun Feb 25, 2007 9:55 pm
Location: Southern California

Re: Dividends

Postby KyleAAA » Wed Jul 03, 2013 1:15 pm

avbferry wrote:
KyleAAA wrote:
I don't understand. Where do you live, what country are you a citizen of, what country are the investments in, and who exactly is withholding the 30% tax?


Apologies of the lack of details.

I live in Singapore. Am a resident there. I invest in Vanguard Total World Stock Idx Fd (ETF). The US witholds that 30% tax.

Would greatly appreciate your help on this.


Reinvesting dividends would have no tax consequences in the US. You have to pay the tax regardless.
KyleAAA
 
Posts: 5367
Joined: Wed Jul 01, 2009 6:35 pm

Re: Dividends

Postby cjking » Wed Jul 03, 2013 2:54 pm

My wife (a non-US citizen living in UK) holds some US shares with a US broker and had 30% tax imposed (in place of the previous 15% withholding tax) because she was too lazy to fill in a W-8BEN form her broker sent her. I believe she could reclaim the extra 15% by filling in a US tax return. I don't know if this is info. is applicable to your situation.
cjking
 
Posts: 1461
Joined: Mon Jun 30, 2008 5:30 am

Re: Dividends

Postby avbferry » Fri Jul 05, 2013 10:41 pm

CABob wrote:
I live in Singapore. Am a resident there. I invest in Vanguard Total World Stock Idx Fd (ETF). The US witholds that 30% tax.
So I assume from your post that you are a US citizen, correct?


Yes, that is correct.
avbferry
 
Posts: 70
Joined: Tue Jan 03, 2012 10:09 am

Re: Dividends

Postby plats » Sat Jul 06, 2013 2:59 pm

USA brokerages and banks don’t have to withhold the 30% if they receive a letter stating that you are a US citizen and file a tax return in the USA. It’s been decades since I’ve had to do this so I’m not up-to-date with current regulations.
plats
 
Posts: 336
Joined: Mon Dec 31, 2007 10:46 pm


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: Gary Guss, JustBill, mss, stromboli, TubofProtein and 54 guests