The context here is the OP’s comment which is what I was replying too.
So the point is that local residents do not have this tax free (beyond their local allowances). They too are taxed at the same rate on their local dividends as are non residents.
I get your point though. My point is whatever you call it the dividend tax is paid by local and non local residents. Non local residents in general can reclaim this tax but it might not be worth it given their own local tax regime. In many cases locals have to pay more tax if the foreign withholding is less than the local whatever-you-call-it tax.