Update: Withholding Tax Rates by Country for Foreign Stock Dividends

With the start of New Year some investors are looking for information related to withholding taxes on dividends paid by foreign companies in order to make portfolio changes. So here are the updated withholding tax rate tables to my earlier post on the same topic last year. Please note that this information is accurate as of Nov 26, 2012 according to S&P Dow Jones Indices LLC.

The table below lists the countries that have NO withholding taxes on dividends paid to U.S. residents:

S.No.
Country
Withholding Tax Rate (%)
1Argentina0%
2Bahrain0%
3Brazil0%
4China - Red Chips0%
5Colombia0%
6Cyprus0%
7Egypt0%
8Estonia0%
9Hong Kong - Local Shares****0%
10Hungary0%
11India0%
12Jordan0%
13Mauritius0%
14Mexico0%
15Oman0%
16Qatar0%
17Singapore0%
18Slovakia0%
19Tunisia0%
20U.K. Corporations0%
21United Arab Emirates0%
22Vietnam0%

The following table below shows the withholding tax rates by country on dividends paid to U.S. residents:

S.No.
Country
Withholding Tax Rate (%)
1Bosnia5%
2Bulgaria5%
3Saudi Arabia5%
4China - A Shares*10%
5China - B Shares**10%
6China - H Shares***10%
7Kenya10%
8Latvia10%
9Lebanon10%
10Macedonia10%
11Morocco10%
12Nigeria10%
13Pakistan10%
14Sri Lanka10%
15Thailand10%
16Croatia12%
17Czech Republic15%
18Kazakhstan15%
19Kuwait15%
20Lithuania15%
21Luxembourg15%
22Netherlands15%
23Russia15%
24Slovenia15%
25South Africa15%
26Turkey15%
27Ukraine15%
28Romania16%
29Iceland18%
30Poland19%
31Bangladesh20%
32Indonesia20%
33Ireland20%
34Italy20%
35Japan20%
36Serbia20%
37Taiwan20%
38U.K. REITS20%
39Chile20.25%
40Spain21%
41South Korea22%
42Austria25%
43Belgium25%
44Canada25%
45Greece25%
46Israel25%
47Malaysia25%
48Norway25%
49Portugal25%
50Germany26.38%
51Denmark27%
52Australia30%
53Finland30%
54France30%
55New Zealand30%
56Philippines30%
57Sweden30%
58U.S.30%
59Malta35%
60Switzerland35%

 

Note:
* Companies incorporated in mainland China and listed in Shanghai and Shenzhen. These companies are quoted in Renminbi and are only available to mainland and Qualified Foreign Institution Investors (QFII).
** Companies incorporated in mainland China and listed in Shanghai and Shenzhen. B-shares in Shanghai are traded in U.S. dollars, while B-shares in Shenzhen are traded in Hong Kong dollars. B-shares are available to mainland and foreign investors.
***Companies incorporated in mainland China and listed on the Hong Kong Stock Exchange.
****Companies incorporated in Hong Kong and listed on the Hong Kong Stock Exchange.
Source: S&P Dow Jones Indices LLC

Some important points to remember:

For more information about U.S. tax treaties with other countries refer to the Publication 901 on the IRS web site.

Click to download:

Withholding Tax Rates by Country (as of November 26, 2012) document in pdf (Source: S&P Dow Jones Indices LLC).

Withholding Tax Rates by Country (as of Feb, 2013) document in pdf (Source: S&P Dow Jones Indices LLC).

Withholding Tax Rates by Country (Deloitte, 2013)

Additional resources:

Withholding Taxes on Dividends, Interest and Royalties by Country (Source: Deloitte International Tax Source)

Compare Tax Treaty Rates Between Countries for Dividends, Interest and Royalties  (Source: Deloitte International Tax Source)

More on this topic (What's this?)
Why America Needs More Tax Inversion
Only the Powerful Get Tax Cuts
Read more on Taxes at Wikinvest

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