Do Singaporeans have to pay Singapore tax on dividends received from US-domiciled ETFs?

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Topic Author
hkung
Posts: 4
Joined: Sat Apr 06, 2019 12:52 am

Do Singaporeans have to pay Singapore tax on dividends received from US-domiciled ETFs?

Post by hkung »

As a Singapore resident, I am wondering if I have to pay extra taxes on the dividends that I received from the US-domiciled ETFs (VTI specifically) in addition to a 30% withholding tax.

I learned that foreign dividends received in Singapore by resident individuals are non-taxable (see https://www.iras.gov.sg/taxes/individua ... /dividends). That being said, I wonder whether the dividends that I received from VTI are exempt from Singapore tax.

Thank you.
TedSwippet
Posts: 4691
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Do Singaporeans have to pay Singapore tax on dividends received from US-domiciled ETFs?

Post by TedSwippet »

hkung wrote: Tue Feb 07, 2023 7:50 am As a Singapore resident, I am wondering if I have to pay extra taxes on the dividends that I received from the US-domiciled ETFs (VTI specifically) in addition to a 30% withholding tax.
Not a Singapore resident, but based on information in Investing from Singapore, it seems that these dividends don't face additional tax in Singapore.

Have you already moved from the US to Singapore, or are you still in the US? If you now live in Singapore, is there a specific reason why you still own VTI, and have not switched to equivalent non-US domiciled ETFs? From your previous thread:
I am a Taiwanese citizen who has been living in the US as a resident alien without a green card. I plan to relocate to Singapore for work and might not return to the US anytime soon.
...
Therefore, to reduce the dividend withholding tax and avoid estate tax, I consider selling my shares in VTI and buying Ireland-domiciled ETFs after leaving the US. I am considering VWRA or VUAA specifically.
Topic Author
hkung
Posts: 4
Joined: Sat Apr 06, 2019 12:52 am

Re: Do Singaporeans have to pay Singapore tax on dividends received from US-domiciled ETFs?

Post by hkung »

Hi Ted,

Thank you for your reply. I contacted the IRA of Singapore and can confirm the dividends I received from VTI are not taxable in Singapore.

This is their answer:
If you have bought stocks in your personal name, only dividends from stocks issued by a Singapore co-operative are taxable.

If the stocks are from almost any other company, the dividends are not taxable.

Do the stocks belong to a Singapore co-operative such as NTUC? If not, the dividends should not be taxable.
Yes, I have moved to Singapore already. I understand I should switch to equivalent non-US domiciled ETFs to reduce taxes. I am going to do it right away.
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