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 (%) |
|---|---|---|
| 1 | Argentina | 0% |
| 2 | Bahrain | 0% |
| 3 | Brazil | 0% |
| 4 | China - Red Chips | 0% |
| 5 | Colombia | 0% |
| 6 | Cyprus | 0% |
| 7 | Egypt | 0% |
| 8 | Estonia | 0% |
| 9 | Hong Kong - Local Shares**** | 0% |
| 10 | Hungary | 0% |
| 11 | India | 0% |
| 12 | Jordan | 0% |
| 13 | Mauritius | 0% |
| 14 | Mexico | 0% |
| 15 | Oman | 0% |
| 16 | Qatar | 0% |
| 17 | Singapore | 0% |
| 18 | Slovakia | 0% |
| 19 | Tunisia | 0% |
| 20 | U.K. Corporations | 0% |
| 21 | United Arab Emirates | 0% |
| 22 | Vietnam | 0% |
The following table below shows the withholding tax rates by country on dividends paid to U.S. residents:
| S.No. | Country | Withholding Tax Rate (%) |
|---|---|---|
| 1 | Bosnia | 5% |
| 2 | Bulgaria | 5% |
| 3 | Saudi Arabia | 5% |
| 4 | China - A Shares* | 10% |
| 5 | China - B Shares** | 10% |
| 6 | China - H Shares*** | 10% |
| 7 | Kenya | 10% |
| 8 | Latvia | 10% |
| 9 | Lebanon | 10% |
| 10 | Macedonia | 10% |
| 11 | Morocco | 10% |
| 12 | Nigeria | 10% |
| 13 | Pakistan | 10% |
| 14 | Sri Lanka | 10% |
| 15 | Thailand | 10% |
| 16 | Croatia | 12% |
| 17 | Czech Republic | 15% |
| 18 | Kazakhstan | 15% |
| 19 | Kuwait | 15% |
| 20 | Lithuania | 15% |
| 21 | Luxembourg | 15% |
| 22 | Netherlands | 15% |
| 23 | Russia | 15% |
| 24 | Slovenia | 15% |
| 25 | South Africa | 15% |
| 26 | Turkey | 15% |
| 27 | Ukraine | 15% |
| 28 | Romania | 16% |
| 29 | Iceland | 18% |
| 30 | Poland | 19% |
| 31 | Bangladesh | 20% |
| 32 | Indonesia | 20% |
| 33 | Ireland | 20% |
| 34 | Italy | 20% |
| 35 | Japan | 20% |
| 36 | Serbia | 20% |
| 37 | Taiwan | 20% |
| 38 | U.K. REITS | 20% |
| 39 | Chile | 20.25% |
| 40 | Spain | 21% |
| 41 | South Korea | 22% |
| 42 | Austria | 25% |
| 43 | Belgium | 25% |
| 44 | Canada | 25% |
| 45 | Greece | 25% |
| 46 | Israel | 25% |
| 47 | Malaysia | 25% |
| 48 | Norway | 25% |
| 49 | Portugal | 25% |
| 50 | Germany | 26.38% |
| 51 | Denmark | 27% |
| 52 | Australia | 30% |
| 53 | Finland | 30% |
| 54 | France | 30% |
| 55 | New Zealand | 30% |
| 56 | Philippines | 30% |
| 57 | Sweden | 30% |
| 58 | U.S. | 30% |
| 59 | Malta | 35% |
| 60 | Switzerland | 35% |
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:
- Canada does not charge taxes on stocks held in qualified U.S. retirement accounts such as 401Ks, IRAs, etc.
- Recently Canada enacted new requirements for foreigners to be eligible for reduced withholding tax rates. More information on this can be found here.
- The above rates do not apply to non-U.S. residents. So consult with a tax adviser before making any investment decisions.
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)
