Most countries charge a withholding tax on dividends paid out by domestic companies to foreign investors. This tax can be substantial for some countries and will reduce the dividend yield. So its very important to consider the dividend withholding tax rates when picking foreign stocks. In addition to this tax, ADRs may also include other fees such as pass-through fees which we will discuss in another post later.
S&P Global has updated their one-pages on the dividend withholding taxes for 2026. This table shows the rates for each country as of Dec 29, 2025. The highest rate is 35% by countries such as Switzerland, Belgium, Chile, etc. On the other hand, some have 0% rates. For instance, Singapore charges 0% on stocks but 10% for REITs.
Canada has a 25% rate but can be reduced to 15% by submitting a form through brokers. For Canadian stocks held in US qualified retirement accounts like the IRAs there is no dividend withholding tax at all. This is a great benefit for US investors.
Click to enlarge
Source: S&P Global
Related:
An Update on the Declaration of Eligibility for Canadian Tax Treaty Benefits
