Investing
Dividends from US stocks and Form W-8BEN: how much tax a Ukrainian pays
US tax with and without W-8BEN, the form field by field, 9% and 5% in Ukraine, the IRS transcript for a credit, declaring, REITs and accumulating ETFs.
Ex-dividend date: what it means
The ex-dividend date is the day by which you must already own a share to receive a declared dividend; buying on that day or later does not.
The ex-dividend date is the day from which a share trades without the right to the next declared dividend. To receive the payment, the share must be in your account before that date; if you buy it on the ex-dividend date or later, the previous owner gets the dividend.
On the ex-dividend date the share price usually falls by roughly the amount of the dividend. So buying a share just for the next payment makes no sense: the price drops by the same amount, and the dividend is still taxed in the US and in Ukraine.
In detail, with examples: Dividends from US stocks and Form W-8BEN: how much tax a Ukrainian pays
Related terms
Form W-8BEN ETF (exchange-traded fund)
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