How stock dividends are taxed depends on several factors, including your country of residence, where the specific stock is registered, and applicable tax treaties between countries.
If you invest in a stock that pays dividends, withholding tax (WHT) is deducted automatically before the dividend reaches your account, meaning you receive the net amount without needing to take any action. Depending on your country of residence and local tax laws, additional taxes may apply on top of this, and you may need to declare the income in your local tax return.
- US stocks: dividends paid to non-US investors are subject to US withholding of up to 30%. Where a tax treaty applies, and the required documentation is in place, this is typically reduced (commonly to 15%).
- European and other international stocks: withholding tax percentage depends on the origin country of the security and can be up to 35%.
Mintos will provide you with the necessary tax documentation for your stock investments. For general guidance on taxation at Mintos, please visit our Help Center taxation section. We strongly recommend consulting a qualified tax advisor for guidance specific to your personal situation and local tax laws.