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Motley Fool Global Gains / GGM: Really Basic Questions


Subject:  Re: Foreign taxes on dividends Date:  9/12/2011  3:14 AM
Author:  TMFTheSnake Number:  825 of 847

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.
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