Hey guys, does buying ETF like S&P 500 in M+ Global will need to pay capital tax of 30 percent?

I heard any US ETF needs to pay 30 percent capital tax.

there's no capital gains tax, but by default we must fill up w8 form to broker since we're not us tax resident

dividend we receive is taxed 30% though since there's no treaty between msia and us

This post has been edited by Maniee27: Jan 5 2025, 05:38 PM

What if I use platform like IBKR ? Do I need to pay up capital gain tax for my shares ?

It does not matter which platform you buy from when u submit the w8 form. You're not required to pay capital gains tax, but withholding tax of 30%, which is on your dividends (which should be automatically deducted).

If the IRS deems that all non-resident aliens have to pay capital tax, then you will have to pay capital tax regardless of which broker you buy from so as long as you buy/sell in the us market.

If you use IBKR, you can go for VWRA or irish-domiciled ETFs via the LSE market. They have 15% withholding tax instead of 30%.

This post has been edited by Maniee27: Jan 5 2025, 10:10 PM