Does anyone (non US citizen) have any experience while residing in Taiwan (and therefore after filing the w8ben-form saying that you reside and pay taxes in Taiwan) with online stock brokers or online banks and when buying and selling stocks in the US?
Taiwan does not have a tax agreement with the US so theoretically when a resident of Taiwan have capital gains (sold stocks for more than for what he bought them) in the US, this person needs to pay taxes in the US and in Taiwan over the same capital gain. So maybe the bank or stock broker could withhold the tax part on the capital gain.
Does anyone have any actual experience on this?
To my knowledge, a 30% withholding applies when no tax treaty is applicable.
If you fill a w8ben witholding is applied only on dividend s, not capital gains. https://www.investopedia.com/ask/answers/06/nonusresidenttax.asp#:~:text=Nonresident%20aliens%20are%20subject%20to,in%20your%20country%20of%20origin.&text=If%20you%20are%20a%20resident,rules%20as%20a%20U.S.%20citizen.
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I am looking for experience, not just knowledge. On dividends it gets automatically
I am looking for experience, not just knowledge. On dividends it gets automatically withhold, but on capital gains I don´t think (think is not a fact) that the broker or find will do the same, but I could perfectly be wrong.
According to this article the withhold will apply to dividends only, not capital gains, but in the IRS website speaks differently on countries who have no tax agreements (like Taiwan). Is for this that real experience could break this dilemma. Any non US citizen that while residing in Taiwan bought and sold US stocks should know. There has to be a few…
Yeah that’s for real. And it is retroactive during tax year.
i have an ESPP and RSU with my company (based in the US), both are taxed as additional income here in Taiwan. As a non-US citizen and filing/declaring my being non-US citizen via the w8ben-form, i don’t get taxed in the US but it becomes part of my taxable income in Taiwan. i have never experienced the tax being withheld by the bank or my payroll for capital gains or vested RSUs.
I can’t confirm that. My (German) bank told me after filling out a W8BEN-Form that - because there is no tax treaty between Taiwan and the US - no reduction in withholding tax applies for me and they still need to deduct 30% (?) of tax on dividend payments from US stocks.
Yes, that is correct.
- Dividends are subject to 30% withholding tax.
- Capital gains are not subject to US taxation, but to taxation in your country of tax residence.
- Estate taxes depend on whether you invest in US assets. You can avoid them by investing in Ireland-based ETFs that invest in the US market.
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