UPDATE: For the 2016 tax rates go to: Dividend Withholding Tax Rates By Country 2016 One of the factors that investors need to consider when investing in foreign stocks is taxes since it reduces the effective rate of return on an investment. Small Investors and the U. One of the factors that investors need to consider when investing in foreign stocks is taxes since it reduces the effective rate of return on an investment. Governments of most withholding tax rates in pakistan 2016 17 pdf try to recoup millions in taxes from dividends that are paid to foreign investors by companies located in their countries.
For example, when a U. Hence though TEF currently has a 6. This is done to avoid double taxation of dividends. There is a maximum limit to this tax credit. A few countries do not charge any taxes on dividends paid to foreign investors. So foreign investors receive the entire dividends paid by companies based in those countries. The table below lists the countries that have no withholding taxes on dividends paid to U.
The following table below shows the withholding tax rates by country on dividends paid to U. Companies incorporated in mainland China and listed in Shanghai and Shenzhen. B-shares in Shanghai are traded in U. 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. Note: Please note that the above information is known to be accurate from the sources used. These rates do not apply to non-U. Consult with a tax adviser before making any investment decisions. Due to the tax-treaty between U. Germany, Germany does not deduct any taxes on dividends paid by German firms to U.
IRA and other qualified pension accounts. Germany charges dividend withholding taxes on stocks held in any qualified retirement account such as a Roth, Traditional IRA, etc. The following countries have tax-treaties with the U. Australia, Austria, Bangladesh, Barbados,Belgium, Canada, China, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Korea, Latvia, Lithuania, Luxembourg, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, and Venezuela.
Without the tax treaties U. S investors will pay higher taxes. But due to the special tax treaty with the U. It is generally not advisable to hold foreign dividend-paying ADRs in IRAs and other non-taxable accounts since one cannot recover the taxes paid to a foreign country.
IRAs for the long-term without worrying about taxes on dividends. This could be due to any recent change in Chilean tax laws. For more information about U. Claiming Foreign Taxes: Credit or Deduction? Germany will take out taxes even if you hold stocks in IRA accounts. The current tax rate is just over 26.
IRA accounts for last year. So you can assume it will be the 26. Thank you very much for your paper, very extensive and correct for the EU countries I know. As an options non-professional trader, it is quite difficult to know how I will be taxed. I exclude Monaco, Andorre, Gibraltar and eastern countries. I read that Greece is not taxing portfolio profit, but is it still true ?
Thank you for your help. I will update the info for Belgium. Unfortunately I do not have answer to your question. Since your situation is unique you may want to research online on this issue or contact your broker or tax advisor for help. Please reply with withholding rate for Monaco as I hold stock DLNG. Thank You for time and reply.