Nri tax on dividends

General
1

hi guys

I am an nri based in middle east and what is the percentage of tax incurred on dividends received from an us based etf.

thanks

2

Hey @Khan_Echo_775

On dividends received from a US ETF, a withholding tax is applicable - essentially, a % of the gross dividend proceeds is withheld in the US by the broker and paid to the IRS. This % typically tends to be 25%, but could be different based on the legal structure or domicile of the fund.

Based on the tax treaty between your tax residency country and the US, if there is a double tax avoidance agreement in place, you could file a refund for the tax you already paid in the US while filing a tax return in your country. e.g. India and the US have a DTAA in place, so Indian investors can declare the income from dividends here, and claim a refund for the tax withheld in the US.

Hope this helps! :slight_smile: