Thanks. It seems that both Monex and SBI are aware that interest-related dividends are not subject to US withholding tax and that their local custodian makes adjustments to any withholding tax withheld from interest-related dividends on ETFs. This means I suppose that if I hold US Treasury Bond ETFs at Monex' NISA and use their automatic reinvestment of dividends service, I can expect a higher return than if I bought a US Treasury Bond Fund at Monex since the ER for Bond ETFs are lower. At least that's what I think it means.
1) The answer from Monex Securities:
(English translation by DeepL)Thank you very much for your inquiry.
We would like to respond to the following inquiry.
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This is Monex, Inc.
Thank you for your continued business.
We apologize for the delay in responding to your inquiry.
We would like to respond to your inquiry.
In the case of U.S. ETFs that pay distributions to non-U.S. persons,
The following are exempt from local withholding tax.
Qualified interest income
Short-term capital gains
However, it is not possible to confirm in advance whether or not the exemption is applicable to a particular issue,
The Company applies the same accounting treatment as applied by the local custodian when applicable.
In addition to cases where distributions are tax-exempted (exempt from withholding tax) at the time of payment, there are also cases where distributions are withheld and then returned to the depository,
In some cases, the tax is withheld at source and then refunded.
Please be aware that there are cases in which distributions are tax-exempted (exempt from withholding) at the time of payment.
The above is our explanation of this matter.
If you have any questions, please do not hesitate to contact us.
Thank you for your continued support of Monex, Inc.
Monex Contact Center Furukawa
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Monex, Inc. [FX, Futures & Options, U.S. Stock Dial]
0120-911-440 (toll free)
03-6737-1668 (except for land lines)
Operator available from 8:00 a.m. to 5:00 p.m. on weekdays.
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<Contact Details
This is a question about BND and BSV, which distribute interest from credits as dividends among U.S. ETFs. It is stated in US law (USC 871: Tax on nonresident alien individuals) that these dividends (Interest-related dividends) are exempt from US withholding tax when paid to nonresident alien individuals. Is this the case with Monex, Inc.
(k) Exemption for certain dividends of regulated investment companies
(1) Interest-related dividends
(A) In general
Except as provided in subparagraph (B), no tax shall be imposed under paragraph (1)(A) of subsection (a) on any interest-related dividend received from a In general, no tax shall be imposed under paragraph (1)(A) of subsection (a) on any interest-related dividend received from a regulated investment company which meets the requirements of section 852(a) for the taxable year with respect to which the dividend is paid.
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2) The answer from SBI Securities:
About “Foreign Stocks”
Q 24/04/18 23:40:09
I have a question about BNDs and BSVs among US ETFs that distribute interest from receivables as dividends. Is this the case with SBI Securities? (k) Exemption for certain individuals
(k) Exemption for certain dividends of regulated investment companies
(1) Interest-related dividends
(A) In general
Except as provided in subparagraph (B), no tax shall be imposed under paragraph (1)(A) of subsection (a) on any interest-related dividend received from a (A) In general Except as provided in subparagraph (B), no tax shall be imposed under paragraph (1)(A) of subsection (a) on any interest-related dividend received from a regulated investment company which meets the requirements of section 852(a) for the taxable year with respect to which the dividend is paid.
A 24/04/23 17:15:20
Thank you for your continued business with us.
We would like to respond to your inquiry.
The U.S. tax law allows certain qualified interest income to be distributed without withholding tax to non-U.S. resident and non-U.S. national investors.
This is based on the U.S. QII (Qualified Interest Income) tax rate adjustment system.
Thank you very much for your cooperation.
------------- original message -------------
I have a question about BND and BSV, which are US ETFs that distribute interest from bonds as dividends. Is this the case with SBI Securities? (k) Exemption for certain individuals
(k) Exemption for certain dividends of regulated investment companies
(1) Interest-related dividends
(A) In general
Except as provided in subparagraph (B), no tax shall be imposed under paragraph (1)(A) of subsection (a) on any interest-related dividend received from a (a) on any interest-related dividend received from a regulated investment company which meet
Translated with DeepL.com (free version)
