How much tax is deducted from my dividends?

Receiving a dividend payment is a taxable event in some cases and jurisdictions. The percentage of tax withheld by etoro depends on various factors and differs from case to case.

Dividends paid on US stocks and ETFs

In general, the withholding tax rate for a cash dividend paid by a US corporation is 30%. In cases where effectively connected income (ECI) is paid, the tax rate is 37%.

Some countries have treaties with the US government that reduce the tax payable on dividends. Since 1 September 2022, etoro has started offering Tax Treaty Benefits for residents of these countries who receive dividends from US stocks and ETFs. See more here.

Dividends paid on non-US stocks and ETFs

The percentage of tax withheld depends on the laws of the source country.

Defining a stock’s source country for tax purposes is a complicated process, since the rules vary from country to country. It may be the country in which the company issuing the dividend is incorporated, or in which its effective management and control reside. In cases where a company is considered to be a tax resident in multiple countries, applicable tax treaties determine which country has the right to levy tax. etoro takes this information from a reliable database and adjusts each dividend payment with the appropriate tax withholding rate on a daily basis.

The table below lists the typical tax percentages according to source country. It is important to note that these figures are indicative and should, therefore, be used only as a guideline.

*25% plus surcharge