Well, you’ve opened your buxiban…
You’ve taken your loot to the bank…
You’ve paid ALL your taxes (Hopefully…
How do you turn that profit into another investment…?
Well, I invest in the US stock market, and I have been buying some stocks with good dividends on a personal basis…
However, I keep getting hit with that 30% withholding tax… as a foreign non-resident.
So I am wondering, is there any LEGAL way to avoid paying this?
Can we set up a company in the US for investment purposes only?
Can this receive dividends pre-tax?
Can the dividends be treated as income?
Can the profits thereby be taxed at a more reasonable rate, ie. minus costs, etc?
Anyone got any suggestions? on this issue? or at least on finding someone in Taipei who is really good at handling this kind of question… Needless to say the sums of money I’m talking about are quite small, presently… But who knows?
All i have ever done is to complete, sign and return to the organisations handling the purchases etc a form W-8BEN, this is called a certificate of foreign status of beneficial owner for United States witholding tax.
With that form i have never been deducted the with holding tax.
After filing your w8-BEN, you are exempt from interest income but you
will always pay the 30% on stock dividends. If you buy bonds, then you will not be taxed on the coupons because it is treated as interest income.