Do I pay tax on dividends in the US?
Yes, but it’s sorted for you.
US withholding tax is deducted before your dividends reach your Hatch account, so you don’t need to lift a finger to sort it.
The US withholding tax rate on dividends is usually 15% after you’ve completed a W-8BEN form (which is done on your behalf when you sign up to Hatch).
As long as you’re not a US tax resident, our US broking partner DriveWealth automatically submits all your required annual US tax reports on your behalf. You'll just notice a $0.50 US fee for tax reporting deducted from your account at US tax time. If you're a US tax resident, get in touch if you’re unsure what investing with Hatch means for your tax situation.
Do I pay tax on dividends in New Zealand?
The NZ tax rules depend on how much you've invested, the dividends you receive during the tax year (1 April – 31 March) and whether you've received any other untaxed income. You can see what your situation is in your Hatch tax reports and see what you might need to do at tax time here.
What if I’m a tax resident in other countries too?
If you’re a tax resident outside New Zealand you’ll need to consider the tax rules for each country, including double tax agreements. A Google search or tax specialist (like an accountant) should point you in the right direction.
Need more help?
We don’t know your individual tax situation but we are happy to point you in the right direction. If you have any questions:
contact our friendly team or
Note: Your tax obligations are unique to you - if you're unsure, we recommend you seek professional tax advice. Your situation may change over time; it’s your responsibility to keep up to date with changes.