Today I received a Grantor Letter from my Stock Services company. As part of my work I am eligible to certain stock grant or participations. Previously I filed
So, it seems that under US Tax (or other countries for that matter) is rather complicated and complex. Esp that according to various website of various online tax advisories. Because I am nonresident Alien (funny how this word is used), I am subjected to Withholding Tax. Witholding Tax is a pool of fund that Financial Services companies or employers are obligated to withhold a portion of your cash if you are a non-resident (ie located outside the jurisdiction of that country) to ensure you pay fully your tax obligations.
So from various searches, it looks like I am subjected to 30% withholding tax for my dividend gains. That is standard rate, that may be reduced if you reside in a country that has Tax Treaty with US. Singapore is not (a search in Singapore Tax Authorities http://iras.gov.sg) resulted in a "limited Tax Treaty" that was last updated in 1988. So 30% it is.
Good to know.
Resources:
