I'm an Israeli citizen studying in the US under an F-1 student status.
As you may know, there are international tax treaties between the US
and other countries (including Israel) regarding capital gains and
dividend tax for foreign students. I am a majority shareholder in two
US companies, one, a Delaware LLC, and another, a Delaware C
corporation. I was looking to pay dividends to the shareholders of
both companies (since I cannot officially withdraw a salary due to the
fact that I cannot be legally employed in the US under my current
student status). My question is, which government(s) do I pay
dividends tax to, and at what rate? I assume the rate on dividends
from the LLC company would be different than the rate on dividends from the C
corporation (as it is so for US citizens). Are the taxes paid by the
company or by me as an individual? Who is responsible for
collecting these taxes, who do I pay it to, who monitors this? Is
there withholding? |