American investors who own foreign securities may have dividend payments taxed by the local country.

Question

Quizplus · Accepted Answer

Many countries tax dividends from foreign companies, therefore American investors who own foreign securities may have their dividend payments taxed by the local country where the company is incorporated. The U.S. tax code may also have provisions for foreign tax credits or exemptions to avoid double taxation.

American Investors Who Own Foreign Securities May Have Dividend Payments