Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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.,,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.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.