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What is withholding tax? Do I have to pay tax on dividends received on US securities?

Yes, under US tax law, non-US persons (non-resident aliens) are subject to a 30% withholding tax on:

  • Dividends from US-listed stocks
  • Short-term capital gain distributions
  • Substitute payments in lieu of dividends

This means all dividends from US-listed securities are automatically taxed at 30%, and the amount will be deducted from your buying power after the dividend is credited to your Brokerage account.

You can view the withholding tax deduction in your monthly statements or in the Syfe Brokerage app under: Account > My Funds > Transfer History.