q4norm.answ3rs: If you are not a US citizen, but choose to invest in the NYSE, how much tax do you pay?
If you are not a US citizen, but choose to invest in the NYSE (assuming you can), how much tax do you pay on the interest earned?
Answers and Views:
Answer by NC
It doesn’t matter if you are a U.S. citizen. What matters is where you actually live. If you live in the U.S. (or, as tax accountants say, you are a U.S. resident for tax purposes), you pay the same taxes as other U.S. residents (income tax on dividends and capital gains tax on realized capital gains). If you live outside the U.S., your broker will withhold U.S. income taxes from dividends you receive (if your country of residence has a tax treaty with the U.S., you will receive a tax credit for that), while capital gains will not be taxed in the U.S. at all.
Foreigners DO NOT PAY TAXES to the United States of America.
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