Question on foreign dividends.
Guys hi, often I am not comfortable with foreign stocks paying dividends (cause I don't understand the tax part). Could you please check that my calculations and assumptions are right for a hypothetical $1000 dividend from an Australian company?
$1000 dividends
-$150 foreign tax withhold
= $850 to my brokerage account
(-$220 non-qualified tax rate
+$150 foreign tax credit)
= -$70 paid to IRS
= $780 left to me (effective tax rate 22%)
-, for foreign tax withhold I am using 15% cause US have treaty with Australia (and 15% is used instead of Australia’s 30% withholding rate)
-, for IRS tax I am using “non-qualified” dividend tax rate cause though US has treaty with Australia and dividend could be “qualified”, it's not listed on US stock exchange and thus is “non-qualified”
Am I getting it right?
If yes, then does it mean that dividends of companies from all countries (Australia, Poland, Sweden, Japan, etc) which have a treaty with the US (and are not listed on the US stock exchange) will end up with the same effective tax rate of 22%? (of rate of “non-qualified” dividend)