Withholding tax 15%?

First Time Investing 🐣
23

Thanks Seb

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24

Is there a reason for a 20% WIthholding Tax rate on some US Stocks? have seen this on dividends from $SBSW Sibanye-Stillwater
Thanks

25

Probably the company is based in another country. The one you mentioned, Sibanye-Stillwater, is based in South Africa where the withholding tax of 20%.

The dividend withholding tax is for most part, dependent on the country the company is based as it is that country’s government who it is ultimately paid to.

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26

Thanks for the reply - had forgotten that; will check

27

Just found this useful link:

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28

If i hold shares within an ISA that pay 15% witholding tax can i claim the 15% back in foreign tax credit like a normal GIA account can?

29

I think you can only reclaim WHT that is over and above the treaty rate set for each country. Since were paying the reduced rate of 15% (instead of 30%) on US stocks then there is no amount to reclaim. Not sure how FT handles WHT outside of US.

you can get guidance by country here.

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30

Just thought - if FT are still not paying US dividends gross of tax in SIPP im assuming this can be reclaimed.

can anyone confirm?

31

Hello. I thought I’d ask the question here since I’ve already got a query sitting with Freetrade support for the last few days!

I’ve recently moved over to freetrade. Similar to the W-8BEN form for US shares, you should complete a NR301 form if you have Canadian countries but don’t live there. This reduces your 25% dividend tax (though I’m not sure by how much).

I’ve search the Freetrade help but can’t find any mention of it. Can anyone here shed any light?

32

If it helps I own a few CAD positions and WHT is 15% across the board.
I think if you buy the US listed ones (which is all we have access to) you’re covered by the W-8BEN

33

Thanks. The 25% I was charged was on my previous share dealing account, so maybe/hopefully it’ll be different here!