USA investments tax for non residents

[O.S]

Hi

For my understanding, nonresidents that invest in stock ( for example ) in the US will pay US taxes on dividends ( 30%)and estate tax for up to 40% of the total value above 60K?
Is there a way to avoid it? (legally)
Does it apply to assets in a NISA account?

[Tkydon]

Hi

For my understanding, nonresidents that invest in stock ( for example ) in the US will pay US taxes on dividends ( 30%)and estate tax for up to 40% of the total value above 60K?
Is there a way to avoid it? (legally)
Does it apply to assets in a NISA account?

Under the US Japan Taxation Treaty, US Withholding Tax on Interest and Dividends for Non-Resident Aliens (not US Citizens) resident in Japan will only be 10%, if you (or your broker) correctly submit the W-8BEN Form, and you can claim that 10% tax paid as a Foreign Tax Credit in Japan against either Aggregate Tax for Interest and Dividends, or Separate Tax for Dividends, depending on which method you choose to use for the calculation.

Other countries will depend on the Taxation Treaty between Japan and that country (the country of residence and the country which is the source of the income).

[O.S]

Hi

For my understanding, nonresidents that invest in stock ( for example ) in the US will pay US taxes on dividends ( 30%)and estate tax for up to 40% of the total value above 60K?
Is there a way to avoid it? (legally)
Does it apply to assets in a NISA account?

Under the US Japan Taxation Treaty, US Withholding Tax on Interest and Dividends for Non-Resident Aliens (not US Citizens) resident in Japan will only be 10%, if you (or your broker) correctly submit the W-8BEN Form, and you can claim that 10% tax paid as a Foreign Tax Credit in Japan against either Aggregate Tax for Interest and Dividends, or Separate Tax for Dividends, depending on which method you choose to use for the calculation.

Other countries will depend on the Taxation Treaty between Japan and that country (the country of residence and the country which is the source of the income).

thanks

[needhelp]

Don't quite understand. Can anyone clarify?
I am a USA citizen longtime resident in Japan (spouse of Japanese citizen).
If I buy stocks or ETFS etc. in the USA, are the gains (when realized) taxed in both countries? What about dividends?
If I buy stocks of ETFs etc. in Japan, are the gains (when realized) taxed in both countries? What about dividends?
If gains are not realized, are they taxed anywhere? Do they need to be reported in Japan or the USA?
I am thinking of an investment of several hundred thousand US dollars, if that makes any difference.
Thanks in advance for any help.

[TokyoWart]

Don't quite understand. Can anyone clarify?
I am a USA citizen longtime resident in Japan (spouse of Japanese citizen).
If I buy stocks or ETFS etc. in the USA, are the gains (when realized) taxed in both countries? What about dividends?
If I buy stocks of ETFs etc. in Japan, are the gains (when realized) taxed in both countries? What about dividends?
If gains are not realized, are they taxed anywhere? Do they need to be reported in Japan or the USA?
I am thinking of an investment of several hundred thousand US dollars, if that makes any difference.
Thanks in advance for any help.

Unrealized gains are not taxed unless you are subject to the exit tax and leave Japan. Both the US and Japan will tax your dividends, interest and capital gains in both countries. You can claim foreign tax credits but generally this results in some level of double taxation because both countries limit the way they count those tax credits (the US because of the AMT and Japan because it only assumes a 10% tax rate in the US for investment income and applies a limit on the total proportion of tax paid compared to your income for the foreign tax credit).