Buying US Stocks via US exchanges

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mimes

Registered User
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Hi All,

This might be a silly question but said I would query for clarity..

Any US stocks I have purchased in the past I have purchased through European exchanges in Euro. (XET etc)

I note with Dividend payouts these exchanges deduct US taxes in advance of me receiving my Dividend share. (~30% is taken at source)

I am currently wanting to purchase specific stocks however note, these specific equities are not heavily traded in Europe.

If buying directly in dollars with US exchanges, is it the case that my Dividends will still be taxed at source or do I need to declare/manage this myself?

This might be a silly question but said I would ask as my preference is to avoid paperwork where possible.

All feedback appreciated and thanks,
Mimes.
 
Even though tax is deducted at source, you are still required to file income tax returns in Ireland. The dividend income is taxed at your marginal rate, and not at 30%. In fact, the broker should only deduct 15% which is the maximum tax allowed under the US/Ireland double taxation treaty.
 
Thanks,

Yes, I do file a tax return for my Dividend/Equity earnings in Ireland.

In relation to the exchange, I assume then there is no difference from a tax perspective of what brokerage I buy from then? i.e. whether it be in Euro or US dollar?
 
No, the Revenue don't care where or who you buy the shares from. Some US brokers seem to be cautious about opening foreign accounts - probably due to concerns about anti-money laundering, investor protection or data protection issues.

With regard to the 30% withholding tax, the Revenue only allow 15% as a tax credit - the other 15% needs to be reclaimed from the US - if you fill in the correct forms, only 15% should be deducted by the broker
 
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