Offshore trading (US exchange)

[Lukcydog]

Correct. Your broker will take care of the 30% dividend withholding tax for you if you are invested in a dividend paying security.

This is not 100% true for all brokers. Standard Bank Webtrader doesn't recover it for you, you have to register with a company called GlobeTax which do the recovery for you. They do this on behalf of Standard Bank and you can see what tax rate of your dividends are at. BUT, any dividends received before registering is applied at 30% and will NOT be recovered by GlobeTax after the fact (One lesson learnt...).

GlobeTax do recover across the World, BUT the cost is MASSIVE (read about R3000 or something stupid like that). I skipped this option as im not recovering the costs in dividends.

Globetax recover withholding tax in the USA for an amount of R300 and renewal is only required every 3 years (thus R100 per year).

 

[FatBoySlim]

Thanks for the informative info.

This is not 100% true for all brokers. Standard Bank Webtrader doesn't recover it for you, you have to register with a company called GlobeTax which do the recovery for you. They do this on behalf of Standard Bank and you can see what tax rate of your dividends are at. BUT, any dividends received before registering is applied at 30% and will NOT be recovered by GlobeTax after the fact (One lesson learnt...).

GlobeTax do recover across the World, BUT the cost is MASSIVE (read about R3000 or something stupid like that). I skipped this option as im not recovering the costs in dividends.

Globetax recover withholding tax in the USA for an amount of R300 and renewal is only required every 3 years (thus R100 per year).