Do I pay tax on dividends from International stocks?
Tax on International dividends is deducted at source.
Dividends from US and Canadian Equities
NatWest Stockbrokers operate as a Qualified Intermediary for US and Canadian stocks and as such we will reclaim tax on behalf of the customers for those specific markets. This process is automatic and the level of tax reclaimed is influenced by the some/all of the following factors:
- Customers Nationality
- W8-BEN status
- The type of dividend (certain rules apply to certain types which influence the tax rates applicable)
Any tax reclaims will be included within the dividend credited to your account. A breakdown detailing the gross dividend, tax withheld and other supporting information is provided within the Consolidated Tax Certificate (CTC) issued to nominee customers each UK tax year end.
Dividends from European Equities
For all other markets (including Ireland) we are unable to reclaim tax on behalf of the customer. This is because we are not a Qualified Intermediary for the respective markets and therefore cannot raise tax reclaims. Therefore the full withholding tax specified by the issuing country will be applied to the dividend.
To help you make a tax reclaim, we can provide you with a Consolidated Tax Certificate for the relevant period. Unfortunately we cannot provide information on how you should reclaim tax from International dividends. Please contact HM Revenue & Customs for further details.
Contact details for the HM Revenue & Customs (HMRC)
HM Revenue & Customs (HMRC)’s International Office, Fitzroy House, PO Box 46, Nottingham, NG2 1BD,
Website: http://www.hmrc.gov.uk/international/