Withholding tax is levied by foreign tax authorities on dividend payments and interest.
The average European withholding tax rate is 25%
A proportion of the tax can be reclaimed and refunded under a Double Tax Treaty between the country of the income and the country of the beneficiary – typically reducing the tax to an effective rate of 15%. In most circurstance, the residual 15% withholding tax can be reclaimed and refunded through a complex process.
For Asset Managers, reclaiming the WHT is complicated and the appointment of a dedicated reclaim specialist brings expertise and greater returns to the process