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Investing for US dividend stocks in South Africa in the long term?
#1
Good day everybody

I have recently enrolled on a dividend investment course that teaches how to invest in US stocks. The course recommends investing in US stocks because of their unparalleled reliability of increasing dividend payments consecutively each year for many years.

As a South African citizen, I have shockingly realised that non-US citizens will have to pay 30% tax on their investment income, which made me wonder how useful this type of investing is in South Africa. Is it still a good idea for South Africans to invest in US companies for the sake of long term dividend returns?

#2
Not sure I follow unless you mean direct offshore investment, in which case I have no clue.

But if you make use of a feeder fund, aren't you taxed according to SA laws: 15% div tax, roughly 30% capital gains for anything over R40k?

#3
I see EasyEquities now have US stocks on their site that we can buy, how does the tax work there?

What is required from me if I buy the US stocks through their platform?

#4
Problem with EasyEquities' offshore platform is that you still have the cost of SWIFT payments. You need large amounts at a time to make it worth your while. My opinion anyway.

#5
Thanks for your feedback. I have read somewhere that the US did sign a tax treaty with South Africa to eliminate double taxation and reduce taxes to 15%. I have to confirm this again though. Also, there is a chance that citizens could benefit from the tax-free savings account. According to the dividend investment course tutor, 15% tax is not a problem to him, as he is paying the same amount of tax in his country.






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