I was about to sell Some US Vanguard ETF’s and was given the following message. ‘ Tax withholding notice
Tax withholding notice for U.S. citizens, resident aliens, and nonresident aliens
The IRS requires us to provide the following information on income tax withholding for your Vanguard account.
Taking a redemption may be subject to a federal income tax withholding of 24%. This includes moving money from one Vanguard fund to another - referred to as an exchange, or taking your dividends, short term or long term capital gains as cash (to your bank or by check), including reinvesting.’.
This seems to indicate that they may place a withholding tax on capital gains which from everything I can read should not apply. Can we safely ignore this warning and go ahead and sell without taxes being levied on our capital gains. We are Based in Hong Kong. I asked the Vanguard call centre and they didn’t know and suggested we talk to a tax advisor
Tax withholding notice for U.S. citizens, resident aliens, and nonresident aliens
The IRS requires us to provide the following information on income tax withholding for your Vanguard account.
Taking a redemption may be subject to a federal income tax withholding of 24%. This includes moving money from one Vanguard fund to another - referred to as an exchange, or taking your dividends, short term or long term capital gains as cash (to your bank or by check), including reinvesting.’.
This seems to indicate that they may place a withholding tax on capital gains which from everything I can read should not apply. Can we safely ignore this warning and go ahead and sell without taxes being levied on our capital gains. We are Based in Hong Kong. I asked the Vanguard call centre and they didn’t know and suggested we talk to a tax advisor
Statistics: Posted by Snufkin — Mon Oct 28, 2024 10:43 pm — Replies 1 — Views 79