Australian (ASX) Stock Market Forum

USA CGT on SMSF investment in shares/ETFs

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6 May 2015
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Hi, from my research it appears that if my SMSF invests in USA shares / ETFs then the tax treatment is:
  • 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.
Hopefully some of you will have actual experience and can clarify.

thanks.
 
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