What is the tax obligation on US securities?

As a non-US resident who invests in US securities, it is important for you to know you may have tax obligations to both the United States and South African Tax Authorities.

For South African residents, with a completed US Tax Form (W-8BEN etc), the withholding tax is 15%. Without the form, the withholding tax is 30%. The tax will be withheld through your dividends and remitted to the Internal Revenue Service (‘IRS’) by Webull automatically.

This withholding tax is only on dividends paid and not on capital gains.

As a client of Webull Securities (Australia) Pty. Ltd., we will offer the ability to have a W-8BEN form completed and lodged on your behalf by our licensed and regulated US clearing partner when you open an account with us. This service is free.

The above information is not tax advice. You should seek your own independent tax advice accordingly.