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Author: nilesgold Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 847  
Subject: Foreign taxes on dividends Date: 9/10/2011 8:13 AM
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Are dividends from foreign companies (outside of the U.S.) taxed before they are paid to U.S. stockholders?

Do U.S. stockholders have to do anything to prevent double taxation on those dividends (foreign tax plus U.S. tax)?

Should I own foreign dividend stocks in my regular brokerage accounts and avoid owning them in my Roth IRA account?

In particular, I am concerned about BLX, COSWF, GDFZY, ITRN, NVS and PVD.

thank you
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Author: nilesgold Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 823 of 847
Subject: Re: Foreign taxes on dividends Date: 9/10/2011 8:23 AM
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Forgot one, SLT.

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Author: anuragupta Big gold star, 5000 posts Top Favorite Fools Old School Fool Ticker Guide Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 824 of 847
Subject: Re: Foreign taxes on dividends Date: 9/10/2011 9:37 AM
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Those nations that tax < 20%, hold them in roth or Taxable. In taxable, you can refunded for the tax you paid the foreign govt (deducted automatically directly from your brokerage account) but uncle Sam will ding you with his 15%.

Traditional IRAs are worse for most div stocks.

Chile is real bad. Taxes 40% of the dividends.
France taxes 25%.

Anurag

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Author: TMFTheSnake Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 825 of 847
Subject: Re: Foreign taxes on dividends Date: 9/12/2011 3:14 AM
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Are dividends from foreign companies (outside of the U.S.) taxed before they are paid to U.S. stockholders?

Many countries do tax dividends at the local level. Of those you listed, I believe only BLX (Panama) doesn't have to withhold on dividends paid to foreigners.

Here is the IRS list of countries with tax treaties with the US. You can see what level of local withholding is applied to your various holdings.

http://www.irs.gov/businesses/international/article/0,,id=96...

Do U.S. stockholders have to do anything to prevent double taxation on those dividends (foreign tax plus U.S. tax)?

You can claim foreign taxes paid and have the portion over US tax levels refunded.

Should I own foreign dividend stocks in my regular brokerage accounts and avoid owning them in my Roth IRA account?

If the local withholding level is above that of the US, holding it in a tax priviledged account will mean you can't get the foreign tax refund.

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