Question on US RIC and it's US tax free distribution tax

Hi everybody,

I read today non-US shareholders could claim back the withholding tax paid on certain parts of distributions from a US based regulated investment company [RIC].

Company in point is PFTL, of which I hold a position in. A 10,000 GBP investment, (approx 1100 shares) is 1248 USD p.a., of which 16% is subject to a withholding tax of 15%.

"*84% of Distribution has been identified by the Company as an interest-related dividend generally exempt from U.S. Nonresident withholding tax*."

FreeTrade tax a withholding tax at 15% on the payment (based on W8BEN) which is correct for the majority of US stocks, but this looks incorrect for an RIE, because 84% of the dividend is tax free for non-USresidenrs.

The aforementioned article refers to “proper documentation” to qualify, but I’ve not found the documentation, yet.

The Freetrade article below does not mention RIC distribution taxes, and I suspect Freetrade might take a blanket approach to the US stocks. Do you deduct tax? | Support

Has anybody tried to get the tax back?
Does anyone know how one could start, or have any sob stories of failure?
Does HMRC have a process to get this back, or should Freetrade provide this service, or should Freetrade provide some proof of dividend statement, or should shareholder contact the IRS, or HMRC to file for exemption?

Oh for the many questions at the start of this week! :slight_smile: