Who is Joel from Joel Income Journal?

Joel is a Singapore civil servant, husband and father of two. Since 2025 he has publicly documented his real income portfolio — high-yield ETFs, covered calls, cash-secured puts and PMCCs — on Substack and YouTube, with the goal of reaching $8,000 a month in passive income by age 50.

JIJ Options (jijoptions.app) is an options trading journal Joel built for wheel traders. It tracks cash-secured puts, covered calls and poor man's covered calls, links the full wheel cycle into one position, handles rolls in one click, and calculates win rate, realized P&L, break-even and annualised return. It costs $5.99/month after a 30-day free trial.

YieldScope (yieldscope.org) is a free tool Joel built that uses AI to score 100+ high-yield ETFs on yield quality, NAV health, risk and sustainability. No sign-up is required.

How are US dividends taxed for Singapore investors?

Singapore has no income tax treaty with the US, so under US rules for non-resident investors US-listed ETFs and stocks have 30% US withholding tax deducted from dividends. IRAS states that overseas income received by individuals in Singapore is generally not taxable, so the 30% withholding is generally the only tax. Return-of-capital distributions are usually not subject to that withholding.

What is the 99-delta ITM covered call strategy?

Instead of buying 100 shares, you buy a deep in-the-money call with a delta near 0.99, which moves almost like the stock for a fraction of the capital, then sell shorter-dated covered calls against it for income. Joel documents his 99-delta trades, including TQQQ and other leveraged ETFs, on Substack.

Which broker does Joel use for options and US ETFs?

Joel uses Interactive Brokers (IBKR) for options trading and margin, and Longbridge for commission-free US share trading.

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Tax · 5 min read

How US Dividends Are Taxed for Singapore Investors

By Joel · Updated 26 September 2026

The short answer

→The US withholds 30% of dividends paid to Singapore residents, because there is no US–Singapore income tax treaty to lower the rate.
→Singapore generally does not tax overseas income received by individuals, so for most investors the 30% is the only tax.
→Return-of-capital distributions are not dividends and are generally not subject to the 30% withholding.
→US-listed holdings above US$60,000 can trigger US estate tax for non-residents, which is a separate risk to plan for.

Why 30%?

US-source dividends paid to a non-resident alien are subject to 30% withholding at source unless a tax treaty sets a lower rate. The US has treaties with many countries, but not with Singapore, so Singapore residents pay the full 30%. Your broker deducts it automatically before the cash reaches your account.

To get this treatment rather than being mistaken for a US person, you file Form W-8BEN with your broker. Most brokers such as IBKR and Longbridge ask for it when you open the account.

What a $1,000 dividend looks like

Gross dividend	$1,000
US withholding (30%)	−$300
Singapore tax	$0
What you keep	$700

Singapore's side

IRAS states that overseas income received in Singapore by individuals is generally not taxable, including when it is deposited into a Singapore bank account. The exceptions are things like income received through a Singapore partnership, so ordinary personal investment dividends fall outside them.

The exceptions income investors should know

Return of capital (ROC): many covered-call and option-income ETFs label part or all of their distributions as ROC. ROC is treated as a return of your own money, not a dividend, so it is generally not subject to the 30% withholding. Some brokers withhold on the full amount first and refund the ROC portion after the fund publishes its year-end tax breakdown.
Irish-domiciled UCITS ETFs: funds domiciled in Ireland pay 15% withholding on their US dividends under the US–Ireland treaty, and Ireland generally does not withhold on the fund's distributions to Singapore investors. For plain dividend exposure this can beat the 30% on a US-listed fund.
Some ETNs and specific structures are taxed differently. For example, I've found USOI's withholding gets refunded. Check each product's tax documents rather than assuming.

Don't forget US estate tax

Separate from dividends: if a non-resident dies holding US-situated assets (which includes US-listed stocks and ETFs) worth more than US$60,000, the estate may have to file a US estate tax return. It's one reason some Singapore investors hold part of their portfolio in Irish-domiciled funds.

This guide explains the general rules as I understand and apply them. It isn't tax advice, so check your own situation with a professional.

See the real after-tax numbers

Every month I publish my dividend income net of the 30% withholding, ticker by ticker.

See the real after-tax numbers →

Sources