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Key tax implications for Malaysians investing in the U.S. stock market
By The Fifth Person  •  October 25, 2024
In Malaysia, capital gains and dividends from stocks are generally not taxed. However, as a Malaysian investing in the U.S. stock market, will you be subject to taxes? This article will provide you with an overview of the key tax considerations for Malaysians investing in U.S. securities, covering dividends, capital gains, and estate tax.

Dividends

When you receive dividends from U.S. companies, the U.S. Internal Revenue Service (IRS) typically withholds 30% of the dividend payment as tax. As a result, the dividend you receive will be 30% less than the amount announced by the company. This withholding tax applies to all non-resident aliens — referring to individuals who are neither U.S. citizens nor U.S. nationals and who have not passed the green card test. In Malaysia, dividend income from U.S. investments is classified as foreign-sourced income. According to the Inland Revenue Board of Malaysia, starting from January 2022, all foreign...
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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