How much tax do I need to pay on dividends for US stocks/etfs?

[deenephew]

I am a Malaysian citizen living and studying in Ireland.

I already have an IBKR account opened in Malaysia (IBKR LLC).

My parents send me allowance via Wise transfers

I use Wise to fund my IBKR account.

I bought a few US dividend stocks (no ETFs)

Q: Since I am still a student, do I need to pay taxes at all?

Q: And if so, how is my dividend income taxed?

Thanks.

 

[mush]

@deenephew Are you paying tax in Malaysia ? OR is there even tax on investments in Malaysia ?

 

[deenephew]

@mush Nope. There is zero CGT in Malaysia apart from the 30% DWT for US dividend stocks.

 

[jadex]

@deenephew If money is not remitted to Ireland you should not have to pay any Irish taxes as far as I am aware but I am not well versed in Malaysian-Irish tax.

You might be able to fill in a form to get that to 15%

 

[resjudicata]

@jadex

You might be able to fill in a form to get that to 15%

You can't get 15% WHT if you're claiming remittance basis. It will be full 30%. But it's not clear if remittance basis is even an option for ETFs since they fall outside the CGT regime.

 

[jadex]

@resjudicata I was talking about the US withholding taxes to Malaysia.

 

[resjudicata]

@jadex There's no tax treaty between the United States and Malaysia.

 

[jadex]

@resjudicata Yeah I doubted there was but it was worth checking

 

[deenephew]

@jadex Ok, I know it's been 2 days, but do you mean that if I buy stocks in Ireland using my parent's allowance from Wise transfers. Are those stocks taxed in Ireland?

 

[jadex]

@deenephew I am not 100% sure but if you buy stocks in your Malaysian account with Malaysian money they should not be taxable in Ireland.

If you buy stocks with an Irish account in Ireland you will be liable to Irish taxes.

That is my best guess but you would have to research further.