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Financial Planning / Tax Strategies


Subject:  Tax applied to an alien Date:  7/14/2005  9:26 AM
Author:  For3igner Number:  80036 of 134706

I am a trialer of the Income Investor newsletter, but I have found a situation which is making me doubt of the usefulness I can get from it.
I have the disgrace of living in a country without a Tax Treaty with the US (non-resident alien).
So, when I got paid my first dividend into my discount broker account, I was surprised to see a nice 30% cut on it.
I did a little research, and got my eyes on an IRS paper, from where I think I understood:

* Dividends paid by a REIT are exempt form withholding, if the distribution is on stock regularly traded on a securities market in the United States.
* Dividends paid by a foreign corporation are generally not subject to NRA withholding (ADR's fall in this category?)

Is anybody out there who can confirm these apparent facts?

Thank you in advance!!!

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