Question about avoiding dividend tax for non-US investor.

Quote from Daal:

If the stock has SSFs then you can use it and no tax. otherwise the only way I found is the way you describe, which works but there might be tax problems and the commisions
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I actually gave you misleading advice for which I apologize. I dont think you can buy at 16:01 on the pre-ex-dividend day,this would probably settle the stock trade before the record day and give you the dividend. I believe(and I will test soon) you need to sell 15:59(maybe a little later if you are paranoid about gains in the after hours) then buy the shares back on the gap down on the ex-div date(maybe with a opening only order?)
I wonder if somebody has experience with this
 
non-US citizens/residents are exempt from paying capital gains taxes in the US. they SHOULD declare that in their home country, though.

regarding dividends, brokers are required to withhold dividend taxes. if you open the account as a non-US citizen/resident, you may get a tax credit in your home country depending on tax treaties.
 
Quote from Nasdaq5048:

If i am a long term investor of a dividend paying stock, but i don't want to pay the dividend tax for non-US citizen. What is the best way to avoid it? The strategy i have in mind is sell it at 15:59 on the ex-dividend date and buy it back at 16:01. Is that doable? Is after hours on the same date considered pass the ex-dividend date? And will the market at 16:01 drop by roughly the same amount of the declared dividend?
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You need to find a broker that will do the following (not sure if this is done much anymore, but it was done a lot in the 1990s).

1. Sell your stock before it goes ex-dividend to the brokerage firm. Settle regular way.
2. Then buy the stock back from the broker at the price you sold it minus the dividend. Settle this seller's option 4 (i.e., T+4).

The broker pockets a commission and takes care of all the tax problems. Obviously, you gotta be big and do size otherwise it does not make any sense for a broker to do this for you.
 
Quote from ManhattanTrader:

regarding dividends, brokers are required to withhold dividend taxes. if you open the account as a non-US citizen/resident, you may get a tax credit in your home country depending on tax treaties.
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Canadians cannot avoid a 15% withholding on US dividends.

But you get a dollar for dollar TAX CREDIT for all dividends withheld by the IRS...
So if you have a competent accountant... it's a wash.
 
You still can use the SSF for either the ETF future or the standard individual contract to circumvent the dividend which removes the dividend tax problem.
If you are a big enough client for your firm the T+ 4 trade can work as well.
 
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