Arrie

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.

Hello South Africa I want to invest in very long term positions of US shares, and get income from dividends. I want to pay as little tax and other costs on the dividend income as possible. The tax-free savings account has caught my interest. Until I have deposited the maximum allowable contribution of R 500 000, I don't intend to withdraw any money from the account. I will leave the account to compound for as long as possible. In the long term future, does the tax-free savings account allow one to withdraw regular dividend income after the maximum allowable contribution has been reached? Is there a tax-free savings account out there that allows one to invest in foreign (US) shares? Could you buy and sell your own shares as you like in such an account?

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?