When an income is paid from one country (the source country) to a resident of another country, the source country may withhold a tax at the source, the withholding tax. The withholding tax rate can be as high as 35%, but the respective DTTs often reduce this rate or eliminate it entirely.
You must be a tax resident of a country that has a DTT with the country where the income originates.
The DTT must specifically cover the type of income (e.g., dividends, interest or royalties, capital gains, etc.).
Each country has its own list of documentation requirements. Contact us for concrete information
A claim needs to be filed with the tax authority of the source country. This can be done through a paper form or online, depending on the country.
Form Submission: Specific forms are often required by the tax authority of the source country.
The processing time for tax reclaim applications varies by country. It can take several months or even over a year in some cases. An efficient follow-up needs to be performed by experienced professionals to avoid pitfalls which can very easily lead to a rejection of the WHT reclaim
Complexity : The reclaim process can be complex and time-consuming, requiring careful attention to detail, having strong knowledge of text treaties, amendments and local laws.
Language Barriers
Short deadlines for submission and for follow-up : even if you are eligible to a DTT refund, tax authorities will often put sticks on the wheel asking for more documentation to be delivered with short deadlines
Supposing an Irish resident receives dividends from a French company. The French tax authorities typically withhold 25% tax on dividends paid to non-residents. However, under the Irish-French DTT, the withholding tax rate may be reduced to 15%. The Irish resident can claim a refund of the difference.
By using Globe Refund’s tax reclaim service, you will maximize the benefits provided by DTTs and successfully recover withholding taxes.
Our work focuses on providing outsourced withholding tax recovery services to safeguard your investments from over-taxation and save your time from burdensome processes.
