Withholding tax

What is the Withholding Tax (WHT) ?

Withholding tax is levied by foreign tax authorities on dividend payments, royalties and interest

The average European WHT rate is 25%

A proportion of the tax can be reclaimed 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% WHT can be reclaimed through a complex process, learn how

For Fund Managers, reclaiming the WHT is complicated and the appointment of a dedicated reclaim specialist brings expertise and greater returns to the process

Statutory WHT Rates & Years of Limitation

Issue Country Statutory rate Years of limitation
DENMARK 27% 3
CZECH REPUBLIC 35% 2
BELGIUM 30% 5
AUSTRIA 27.5% 5
FINLAND 30% 5
FRANCE 30% 2
GERMANY 26.375% 4
GREECE 15% 5
IRELAND 20% 4
ISRAEL 25% 6
Issue Country Statutory rate Years of limitation
ITALY 26% 4
NETHERLANDS 15% 3
NORWAY 25% 5
POLAND 19% 5
PORTUGAL 25% 2
RUSSIA 15% 3
SPAIN 19% 3
SWEDEN 30% 5
SOUTH AFRICA 20% 3
UNITED STATES 30% 2