How to tax dividends paid by foreign companies through ADRs?
607429
yes, often it gets taxed before it hits you...and then gets taxed again. NOKIA is probably a favorite example here in the US...widely held, widely known.\n\nYou will be offered the chance to claim the foreign tax paid as a deduction or as a credit. A credit will be worth more to your bottom line. There is a line item on your taxes that will ask SPECIFICALLY if you paid any foreign tax. THAT is where your entry goes. Good luck.
385028
In general, yes.  US rules governing taxation of international business are among the most complex tax rules in existence.  Coincidentally, I've spent the last 30 years learning them.\n\nIf you invest in a business directly as a branch/proprietorship or through a partnership, you will pick up your share of the income just as you would in the United States.  You may be entitled to a credit for any foreign income taxes that you pay.\n\nIf you invest through a foreign corporation, you may be able to defer income until you receive a dividend or sell your shares.  However, there are elaborate rules which in some cases require you to pay tax on undistributed income of a controlled foreign corporation.\n\nDepending upon the size of the investment, you should get appropriate professional advice.  Remember that free advice is worth just what you paid for it!
808726
When you sell the ETFs after a year, you get LTCG treatment.  When you get a distribution from your holdings (without selling), usually most of it is qualified dividends if the distribution mostly comes from dividends from stocks rather than REITs or interests.  Your 1099-B will tell you how much of each distribution is qualified dividends.  Non-qualified dividends are taxed at ordinary income rate.
24820
It depends on the country and If you are using a moneycorp account or just your American bank account. I built a company to invest in Dubai, UAE for example where there are no capital gains taxes nor income taxes. whichever state you live can still impose taxes upon your profit however, so that is where the offshore or moneycorp account benefits you.
876643
Dividends are payments made by a company to its shareholders. When a company earns a profit, some of it is reinvested in the business and called retained earnings, and some of it can be paid to its shareholders as a dividend. The frequency of these varies by country. In the United States dividends are usually declared quarterly by the board of directors. In some other countries dividends are paid biannually, as an interim dividend shortly after the company announces its interim results and a final dividend typically following its annual general meeting. In other countries, the board of directors will propose the payment of a dividend to shareholders at the annual meeting who will then vote on the proposal.\n\nIn the United States, decisions regarding the amount and frequency of dividends is solely at the discretion of the board of directors. Shareholders are explicitly forbidden from introducing shareholder resolutions involving specific amounts of dividends.\n\nWhere a company makes a loss during a year, it may opt to continue paying dividends from the retained earnings from previous years or to suspend the dividend. Where a company receives a one-off gain, e.g. from the sale of some assets, and has no plans to reinvest the proceeds, the money is often returned to shareholders in the form of a special dividend.
329589
Section 1445(b)(5) provides that a transferee (purchaser) is not required to withhold on the proceeds if the transferee is an individual acquiring the property for his own use as a residence.  This is echoed in Regulation section 1.1445-2(d)(1) which states:\n\n"No withholding is required under section 1445(a) if one or more individual transferees acquire a U.S. real property interest for use as a residence and the amount realized on the transaction is $300,000 or less." \n\nThe exemption does not apply if the purchaser is not a natural person, or if the purchaser does not intend to use the property as a personal residence.  If your purchaser has not been identified, it can't be determined at this time whether the exemption applies.\n\nThere are ways to reduce the withholding tax, but in your case the cost to implement them would be a significant fraction of the amount of tax at stake.  You may owe tax anyway, and if you don't, the excess of the amount withheld over your ultimate tax liability is refundable to you.\n\nSection 1445 is the withholding provision that backs up section 897, which imposes tax on sales of real property by foreigners.  Under that section, your gain is taxable as if it were income derived from a business conducted in the United States.  This means that you must file a Form 1040-NR for the year of sale reporting the gain and computing the tax.  The tax may be more or less than the amount withheld.  If it is more, you must pay the difference to the IRS; if it is less, then you are entitled to a refund of the excess payment.  In any case, you can't file until after the close of the relevant year.\n\nArticle 13 of the US-UK income tax treaty specifically allows the US to tax gains derived by UK residents from the sale of US real property.\n\nAdditional information is available at the website link below.
359813
You can sell it whenever you want.\n\nConsider the ex-dividend date.\n\nIf you sell it after, you will be the one who will receive the dividend.\n\nIf you sell it before, the buyer will receive the dividend.\n\nMight sound important to consider the ex-divident date, but the market ajust to this date (buyer will pay higher price for a stock with dividend than without). So usually it doesn't make much difference.\nHope its helps.
484914
The Tax Office has issued a Practice Statement concerning the tax issues arising when there are distributions of trust income and capital gains to separate beneficiaries.\n\nBased on the technical application of the law, a beneficiary entitled to a share of trust ‘income’ pays tax on that share of the trust’s net (taxable) income. As a capital gain is not ‘income’, beneficiaries entitled to income may be taxed on capital gains distributed to other beneficiaries, although they have no entitlement to the cash.\n\nThe Practice Statement outlines two practical approaches that will be accepted by the Tax Office in certain circumstances.\n\nThe first enables the beneficiary who receives the benefit of the capital gain to bear the tax.\n\nAlternatively, in certain cases, the trustee can be chosen to recognise the tax liability. A written agreement may be required between the trustee and the beneficiaries. \n\nThe Practice Statement focuses on trusts that have separate ‘income’ and ‘capital’ beneficiaries. However, its application to ordinary discretionary trusts is also acknowledged.\n\nOn contrary it differs from country to country with the percentage or the amount, but the basic remains same... check the link...
1185238
There will likely be withholding on any income (or other) distributions to the foreign partner. You can read more by following the link below.
997061
You can also check here.  This is free, but its only a partial list:\n\nhttp://www.earnings.com/dividend.asp?date=20060313&client=cb
1169769
When you exercise Incentive Stock Options (ISOs) and sell them immediately, you recognize ordinary income. So you will have income of 4000 x $8 = $32,000, which will be taxed at ordinary rates.\n\nOn the shares you do not sell, if you hold them for two years from the date or grant and one year from the date of exercise, you will qualify to recognize the income from the sale as long-term capital gain. However, you recognize income for purposes of the Alternative Minimum Tax at the time of exercise. So, 16,000 x $8 = $128,000 will be added to your AMTI. If you pay AMT because of this, you may get part of it back, as a credit, in later years, because when you sell the 16,000 shares it will be a reduction to your AMTI.
537401
Difficult.  The US Treasury will keep assessments of this sort of information but it is not made public.  Investments are made through brokers and the name of the underlying client is confidential, unless subject to a court order.\n\nAny foreigner investing in the US market has to fill in a W8-BEN form for the IRS which clarifies their tax position.  You might be able to come up with a figure by approaching the IRS and asking if they release summary data from these forms.
401525
No, as long as you don't sell, there is not a taxable moment.  So, you won't have to pay tax on any gains on your stockes until you actually sell them (or transfer them to another person).
700320
While there are several type of stock options generally the amount of money that the company is putting up for the stock is taxable in the state in which the company is located.  Therefore it is very likely that what they have told you is correct.  If you hold the stock for any period of time and sell it at a gain, that gain would be taxable in the state of your residences.  This event is likely to require that you file a tax return in both states.  The good news is that you off set one states taxes with a like deduction for that tax in the other.  \nOptions are sometimes very tricky to properly report on your tax return.  You may wish to consult with a tax professional in your area.  You should attempt to locate some one that is familiar with stock options.
663079
There can be two types of income for you as a result of investment in offshore company.\n     . Dividend\n     . Capital gain\n\nIf you are resident Indian, both these are taxable , since dividend from only Domestic company are tax free. On short term capital gains you will have to pay normal rate of tax because the sale of these shares shall not take place through  Stock Exchange,\n       However, the offshore company means a foreign company which is also listed in Indian Stock Exchange, Long term capital gain is zero, Short Term at the rate of 10% and Dividend shall be taX free
778589
it doesnt matter where the money comes from if it is earned in the UK then you will be liable to UK tax. You would need to use an accountant to work out your tax liabilities due on any money earnt during the tax year.
963780
You need the advice of a Chartered or Certified Accountant who has experience handling ex-pats.\n\nAs for the money you have already received, that is settled.  You will be treated as a sole trader.  You cannot set up a company and transfer the income there after the fact (well, you can, but it would be capital invested and the income would remain taxable to you as a sole trader).  Personally, I always had doubts about the value of consultancies being set up as limited companies.  Most of the time, the tax savings aren't there.  It is really only of benefit if you have major assets to protect in the event of bankruptcy or if your earnings are so high that you want to leave the money in the company (which is probably not the case for a summer contract).  You might prefer to remain a sole trader and pay Class 2 and 4 NIC on your UK source consultancy income.  again though, that might not be worth it.  I have been out of the UK long enough to not know how things are currently on the state pension front.  \n\nBottom line - get advice from someone who can fully consider your situation.  Make sure that person is qualified and experienced in ex-pat taxation.  When it comes to fees, bear in mind that those fees pay for your peace of mind as well as keeping you on the right side of the taxman - something that is hard to do from another country, even in the internet age.