Under US domestic tax laws, a foreign person i.e. you, are subject to 30% US tax on the gross amount of dividends. However, the US has tax treaties with several countries and, if you are a resident of one of those countries, a lower withholding amount may be applicable. Some examples of withholding rates are as follows:
25% | India, Israel, Philippines
20% | Tunisia, Turkey
15% | Australia, Denmark, Egypt, Estonia, Finland, France, Germany, Hungary, Iceland, Indonesia, Ireland,Italy, Jamaica, Kazakhstan, South Korea, Latvia, Lithuania, Luxembourg, Poland, Portugal, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Ukraine, United Kingdom, Venezuela
10% | Bulgaria, Japan, Mexico, Romania
Note that there will be no dividend withholding tax for dividends under 3 cents, as the withholding tax amount will be smaller than 1 cent.
This is provided as general information only and should not be construed as tax advice. Gotrade is not responsible for the accuracy of the above information and you should consult www.irs.gov for more information.