Hi, from my research it appears that if my SMSF invests in USA shares / ETFs then the tax treatment is:
thanks.
- dividends: USA imposes Withholding tax of 15% on the dividend. This can then be used as a foreign tax credit against tax payable in Australia. If SMSF is in pension mode, it is lost.
- capital gains - short term (under 12 months): added to "ordinary income", so I'm assuming this would also have the 15% withholding tax applied in USA?
- capital gains - long term (over 12 months): no CGT in USA.
thanks.