Expat Tax Tip #16 – Dividends & Investments Abroad Aren’t Always Tax-Free

## Expat Foreign Dividend Tax Rules

Expats often assume foreign dividends are only taxed overseas, but expat tax rules mean most countries tax them twice — once at source, once at home.

• Australia (ATO): Foreign dividends are taxable income. You may be able to claim a foreign income tax offset for withholding tax already paid overseas. ATO – Foreign Income
• Canada (CRA): Dividends from foreign corporations are fully taxable (no Canadian dividend credit). If foreign tax is withheld, you may claim a foreign tax credit on your Canadian return. CRA – Foreign Income
• U.S. (IRS): U.S. persons must report all foreign dividends. Some countries reduce withholding under tax treaties, but Form 1116 (FTC) is often required. IRS – Foreign Tax Credit

📘 For strategies to avoid double-tax traps, see my Canada Expat Tax Guide or Australia Expat Tax Guide.

👉 Tip: Check if your broker automatically applies treaty rates. If not, you could be overpaying withholding tax.

🔗 Please refer to this page to see all my other expat tax tips.