A common fear among non-US investors is the 30% Withholding Tax (WHT) when trading US stocks. Many think, "If I make $1,000 profit, I only keep $700."
But wait...that is a huge misconception! ð§
In our latest educational snippet, we explain the real deal:
1. Capital Gains = 0% WHT: When you buy a stock (like Nvidia or Apple) and sell it for a higher price, you keep 100% of your capital gains! The 30% tax does NOT apply to your trading profits.
2. Dividends = 30% WHT: The tax only applies to dividends. For example, if Apple pays you a $1.00 dividend, the US tax authorities will deduct $0.30, leaving you with $0.70.
ð¡ If your goal is Growth (buying low, selling high), the 30% tax shouldn't be a dealbreaker for you. Itâs all about knowing which "pocket" the tax is coming from!
ð€ Now letâs test your investment knowledge! Drop your answer in the comments:
"True or False: Selling stocks for profit is taxed at 30%."
â Type 'F' for False
â
Type 'T' for True
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.Read more
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