Every year billions of dollars belonging to non-resident investors is retained overseas, with only a small amount being returned to them.
If you receive income from a foreign company such as interest, dividends or capital gains, or if you've been investing in the stock exchange, your income may be subject to withholding tax. Dividends received from international shares are subject to withholding tax and in some circumstances, this can lead to a significant amount being withheld. For example, if you hold shares in a US company and you're not a US resident, under US tax law, your dividend payments will be subject to 30% tax.
Tax rates vary from 15% to 35% depending on the jurisdiction. Depending on the source country of the dividends, a foreign tax credit may be claimed on the Irish tax return and this can then be used to reduce the Irish tax liability on these dividends.
Investors have traditionally had difficulties in claiming back withholding tax relief on dividends, interest and other securities income received from other countries. A large number of investors do not claim back Dividend Withholding Tax (DWT) due to the high fees which are typically charged for the service by traditional accountants, who tend to favour a clock-based pricing structure. High fees can render the value of the refund negligible and so many investors are subsequently discouraged from claiming.
Taxback.com currently provides cost-effective DWT reclaim services for income derived from investments in the following countries: Belgium, Finland, France, Germany, Italy Netherlands, Sweden, Switzerland, Spain and the US. If you have received income from interest, dividends or capital gains from any country of which you are not a resident, contact us today to discuss reclaiming your investment income tax.
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