Australian company dividend - qualified or not?

Forum|Forum|1 year ago
March 29, 2025
1 reply
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I understand that to be qualified, 1 of 3 conditions must be met. My question is on the condition: company incorporated in a US possession.

Can the parent company have a subsidiary that’s incorporated in the US and that’s sufficient to meet the condition?

TurboTax Deluxe Online

Bsch4477

Employee

The IRS decides whether a dividend is qualified and it has to with treaties as well as other considerations.

KofianAuthor

Australia has a treaty with the US. If I need to check with the US Treasury if my specific company is covered, where would I look? I believe from other answers, the key outstanding question is if the company subdivision incorporated in US is sufficient (parent is incorporated in Australia). The company is not traded on a US exchange

BrittanyS

Golding Lawyers provide the following information on foreign dividends, "Not all foreign dividends are qualified. In order for a foreign dividend to be qualified, it has to meet certain threshold requirements to assess whether it meets the minimum basic requirements for qualified dividend status.

Generally, the foreign dividend must meet any of the following requirements (brief summary):

The Corporation is incorporated in a U.S. Possession
The Corporation is eligible for benefits by way of a U.S. Income Tax Treaty
If the stock is readily tradable on an established securities market in the U.S. (or a National Securities Exchange registered under Section Six of the Securities Exchange Act of 1934 or NASDAQ Stock Market.)"

See the link below for more information: