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.

The purpose of this article is not to talk about dividend withholding tax. So either check out the article by investment moats or the one by financial horse.

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?