FOREIGN SHAREHOLDERS OF US CORPORATION 

(including an LLC filing as a corporation)

Image by Hunters Race

TAX ON DIVIDENDS

Federal NRA Withholding

A US corporation generally must withhold (tax) 30% on a payment of U.S. dividends to foreign shareholders.

(Refer to Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and Form(s) 1042-S, Foreign Person's U.S. Source Income Subject to Withholding)

FIRPTA

A domestic corporation must withhold a tax equal to 10% of the fair market value of the property distributed to a foreign person if:

The shareholder's interest in the corporation is a U.S. real property interest, and the property distributed is either in redemption of stock or in liquidation of the corporation.