RetireJapan

tamaplanian wrote: ↑Tue Oct 19, 2021 1:04 am The 10% withholding tax on US funds is something i will check with my tax accountant on.
I already have some funds that I have been paying this on however the amount has been relatively small.

The U.S. 10% withholding tax is only applicable to the Gross amount of Dividend Income, and only under the benefit of the U.S. Japan Tax Treaty.
If you are not covered by any Tax Treaty, the Withholding Rate in the U.S. is 30%.

There is no taxation on Capital Gains for non-resident International Investors.


https://www.irs.gov/individuals/interna ... nresidents

See 'Dividend Income'

https://www.irs.gov/publications/p515

See 'Beneficial Owners'

https://www.irs.gov/individuals/interna ... fic-income

All other income payments subject to withholding - 30%
(Dividend Income without the benefit of reduced withholding under a Tax Treaty.)

https://www.irs.gov/individuals/interna ... -must-file

The W8-BEN previously only asked you to state that you were a resident of another Country (Japan), but now you have to state the Article and Paragraph, the Income that you claim the Tax Treaty against, and the Tax Rate claimed under the Tax Treaty, and provide your 'My Number' as TIN.

The Withholding Tax Rate under the U.S. Japan Tax Treaty is 10%

Article 10 - Paragraph 2(b) of the US Japan Tax Treaty refers.