Ive recently sold an IP and was thinking of investing aud$100k in shares on Nasdaq
I dont understand withholding tax rules..
If Im a resident of oz and execute this trade via the bank this week for example...
- Invest aud$100k this week which based on current exchange rates gives me 892 shares @$83.62usd (per share)= total exposure usd74,589
- If in 1 years time the stock price rises to usd $140 for example...
usd140 x 892 shares = usd 124,880 and say for example that the exchange rate is the same and the money converts to aud $160,000 when selling the shares
How much withholding tax has to be paid and is it on the usd or the aud amount. Do I get a refund on the withholding tax?
Presumably I would be having to pay capital gains tax to the ATO as well?
Its all a lot of risk to take (market and exchange rate risk)
many thanks
I dont understand withholding tax rules..
If Im a resident of oz and execute this trade via the bank this week for example...
- Invest aud$100k this week which based on current exchange rates gives me 892 shares @$83.62usd (per share)= total exposure usd74,589
- If in 1 years time the stock price rises to usd $140 for example...
usd140 x 892 shares = usd 124,880 and say for example that the exchange rate is the same and the money converts to aud $160,000 when selling the shares
How much withholding tax has to be paid and is it on the usd or the aud amount. Do I get a refund on the withholding tax?
Presumably I would be having to pay capital gains tax to the ATO as well?
Its all a lot of risk to take (market and exchange rate risk)
many thanks