Dividends and tax avoidance. Singapore investors love them.
Just recently I came across an article talking about the most tax efficient ETFs for Singapore investors.
If you are a non-US tax resident and have invested in US stocks, you may be aware that there is a 30% tax on all dividends received. This is dreaded dividend withholding tax known to all dividend investors.
But if you need my explanation, here it goes: tax is complicated.
To conclude his piece, the author recommended Irish Domiciled UCTIS ETFs because the withholding taxes on dividends paid to non US investors are half (15%) compared to a US Domiciled ETF (30%).
Sounds Good, But Is There a Catch?