Jump to content

Investing for US dividend stocks in South Africa in the long term?

Arrie

By Arrie
in Investments

 Share

Recommended Posts

Arrie Newbie

Arrie

Posted
Posted

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?

Bandit Newbie

Bandit

Posted
Posted

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?

IQ Test

Noobly Newbie

Noobly

Posted
Posted

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?

Bandit Newbie

Bandit

Posted
Posted

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.

IQ Test

  • 1 month later...
Arrie Newbie

Arrie

Posted
  • Author
Posted

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.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing

  • The JSE Investment and Finance Forum

    Platinum Wealth is a leading financial forum with an eye on the future of our country and the citizens of South Africa.  Even though the era of trading exclusively with physical goods is in the distant past, we as a civilization have always looked for new ways to prosper. Simply put, ways to get a better deal.  To have more, for less.  At Platinum Wealth we have created a bigger platform for you to do exactly that - a connected network of your peers giving the tips and tricks that have helped them reach their financial and investment goals.

    From personal finance and creating wealth, to financial news and small business, we cover it all at Platinum Wealth.  Pose your money and investment questions in our money and investment forums, we'll make sure they get answered.  We want to guide a new generation of money conscious readers.  We are here to share tips and practical knowledge that will help you live large without sacrificing your financial independence.

  • Tell a friend

    Love Platinum Wealth: The JSE and ZAR X Financial and Investment Forum? Tell a friend!

  • Topics

×
×
  • Create New...