When you invest in US-listed stocks or ETFs through CUSP, you may receive dividends — cash payments that companies or funds distribute to shareholders.
Because these dividends come from US companies, they are subject to US tax rules, even if you are a UAE resident.
Withholding tax on US dividends
By US law, a 30% withholding tax applies to dividends paid to non-US investors.
This amount is automatically deducted before the dividend reaches your account. You don’t need to file or pay anything separately in the US — the process is handled for you.
Example: If a US company pays you $100 in dividends → $30 is withheld for US tax → $70 is credited to your CUSP account.
How it works in CUSP
Dividends are automatically taxed at source through our US brokerage partner, Alpaca.
Your monthly Alpaca statement clearly shows:
The gross dividend paid
The withholding tax deducted
The net amount credited to your account
You don’t need to take any extra action — everything is handled automatically.
Tax in the UAE
The UAE does not tax dividends for individual investors.
Once the US withholding tax is applied, you don’t owe any additional tax locally.