Author Topic: Tax on US Stocks and ETFs  (Read 225 times)

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Offline Steven Ryan

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Tax on US Stocks and ETFs
« on: 22/12/2018, 03:50:42 AM »
Hi All,

A bit of a newbie question coming up.

I am looking to start up an investment plan of trading US ETFs and large cap stocks on the US Exchanges. I am intending to do this via SAXO Australia.

What are the US tax implications of trading US stocks and ETFs (as a non-US citizen)? Do I need to complete a US tax return each year?

Kind regards,
Steven

Offline Gary Stone

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Re: Tax on US Stocks and ETFs
« Reply #1 on: 22/12/2018, 03:38:02 PM »
Steven,

No you don't, you include your USA investment activities in your AUS tax return.

However, when you open an account with any broker you need to complete a 1 page W8-BEN form. This will ensure that you only pay 15% withholding tax on dividends rather than 30%.

Here's a guide:
https://www.macquarie.com.au/dafiles/Internet/mgl/au/advisers/products-platforms/wrap-tax/docs/w8ben-guide.pdf

Regards
Gary
On the journey

Offline Steven Ryan

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Re: Tax on US Stocks and ETFs
« Reply #2 on: 24/12/2018, 09:56:39 PM »
Thanks Gary, that is clear. Appreciate the reply!

Steve