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US dividend tax - Jersey Channel Islands Resident
qlx309
Posts: 1 Newbie
in Cutting tax
Hi All
I'm going to be starting to invest in US stocks and have a question about dividends tax. Currently I am resident in Jersey Channel Islands. I'm trying to find out how dividends paid out by US companies/stocks will be taxed. I've tried asking the local tax office but I still don't have an answer after weeks of waiting.
If I fill in the W8-BEN form does anyone know how much the withholding tax will be for a Jersey resident? The little I know from reading online the withholding tax rate is 30% if I don't fill out the W8BEN form but if I do fill it out I think this is reduced to 15%.
So will my dividend withholding tax as a Jersey resident be 30%, 15% or some other amount?
I should clarify, I'm asking about the automatic withholding tax that is taken off before the dividend is paid to me. In other words, I'm not asking what the Jersey tax will be for dividends on my Jersey income tax form. Hope that makes sense!
Thanks for any help!
I'm going to be starting to invest in US stocks and have a question about dividends tax. Currently I am resident in Jersey Channel Islands. I'm trying to find out how dividends paid out by US companies/stocks will be taxed. I've tried asking the local tax office but I still don't have an answer after weeks of waiting.
If I fill in the W8-BEN form does anyone know how much the withholding tax will be for a Jersey resident? The little I know from reading online the withholding tax rate is 30% if I don't fill out the W8BEN form but if I do fill it out I think this is reduced to 15%.
So will my dividend withholding tax as a Jersey resident be 30%, 15% or some other amount?
I should clarify, I'm asking about the automatic withholding tax that is taken off before the dividend is paid to me. In other words, I'm not asking what the Jersey tax will be for dividends on my Jersey income tax form. Hope that makes sense!
Thanks for any help!
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Comments
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So will my dividend withholding tax as a Jersey resident be 30%, 15% or some other amount?...
The IRS says that "Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S. sources" such as dividends, and other kinds of investment income. Lower rates can apply if there is a tax treaty between the USA and the other country, in your case Jersey.
The IRS has Tax Treaty Tables
https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables
They don't mention Jersey.
Jersey has details of double tax agreements in place
https://www.gov.je/taxesmoney/internationaltaxagreements/doubletaxation/Pages/index.aspx
They don't mention the USA.
Conclusion, it's 30% for you.
Of course I could be wrong. This is just what I've worked out. The only way to be certain would be to ask a Jersey based accountant, as I'm a 100% convinced they would know the answer.
Plan B might be to invest in a UK based IT/UT/OEIC whatever that invested in US stocks.0
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