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SG Centre: what to know before investing globally?
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Moomoo SG joined discussion · Sep 23, 2021 02:59

SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)

Hi, mooers!
Welcome back to the SG Guidebook series! In the previous part: "SG Guidebook: Why should we invest in US stocks?", we received so much valuable feedback that means a lot to us.
On this page, we will introduce some must-known and frequently-asked questions that you probably don't wanna miss.
Here are the key takeaways:
The US market has pre-market and post-market to extend trading hours.
You can buy or sell 1 share each time.
Taxes on dividends is 30%. But you are exempt from the US capital gains tax.
1. Different Market Rules
Market trading hours:
Unlike the Singapore stock market, the US stock market has pre-market and post-market, which expends the trading time of the day.
SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)
Note: During the US winter time (US standard time starts on the 1st Sunday in November and ends on the 2nd Sunday in March), the trading time shifts to SGT 10:30 pm to 5 am.
Minimum share:
On the US stock market, you can buy or sell 1 share for every single trade, while in the Singapore stock market, you can onlybuy or sell100 shares or the integer multiples of 100 shares each time.
Take $Apple(AAPL.US)$ as an example: you can buy 1 share for US$145.58.
SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)
Take $SGX(S68.SG)$ as another example: you have to buy at least 100 shares for SG$1,008.
SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)
2. Taxes and fees:
As people always say, there are two things that we can't get rid of, which are tax and breath.
What do you have to pay for taxes on US stocks? Let's check it out!
Taxes on dividends
Non-resident aliens are subject to a dividend tax rate of 30% on dividends paid out by US companies.
Capital gains tax
If you are a non-resident alien of the US, then you are exempt from the US capital gains taxes without being a tax-slayer. Normally, a US citizen needs to pay capital gains taxes (up to 37% of gains) when selling the shares for a profit.
Note：
Non-Resident Alien (NRA) includes people who are not US citizens, green card holders, nor living in the US for 183 days during the year.
The above information is quoted from US Tax Guide for Aliens and made available for informational purposes only. Futu does not provide tax advisory services. Please consult a licensed professional for details.
Miscellaneous fees
Besides brokerage fees, there are other miscellaneous fees collected by the SEC or Settlement Agencies.
On the US market, those fees include:
SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)
On the SG market, those fees includes:
SG Guidebook: Will I get taxed if I buy US stocks? (Part 2)
To get more details about commission&fees, please go to "Me-HelpCenter-Fees".
3. How to start trading?
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Have fun in your investing journey! Please leave your comment below for any ideas or questions.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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