Lux Investing
Dividend earnings from Indian Companies for US Citizen?
I plan to invest in an indian company. I want to know how much percentage I will be paying as taxes. I understand that the dividend from companies in India is distributed post-tax and then there is a 15% add on as dividend distribution tax. Naturally India does not charge incomes taxes on dividend income for its citizens. However how does the US tax system treat it? Would I still have to pay tax on the dividend income?
Public Comments
- As a US citizen you pay tax on worldwide income. If you also pay tax to India, you would file a form 1116 to get a credit for it.
