US Share Dividend tax relief:
- Relief at Source is for US share dividends.
- It is also for private clients with Danish traded stocks (this is automatic since the clients hold individual accounts with VP that automatically will apply the double tax treaties).
- In order to get Relief at Source for a US share dividend, the instrument needs to be incorporated in the USA and not just trading on an American Stock exchange.
- Currently, Saxo does not offer Relief at Source for American instruments trading on exchanges outside of the USA.
- You must also keep in mind whether the share dividend was paid before you were enabled for Relief at Source.
- See here for more information regarding the different kinds of personal income that may be fully or partly exempt from U.S. income tax: http://www.irs.gov/publications/p901/ar02.html#en_US_2013_publink1000219596
Non-US Share Dividend tax relief:
- In order to reclaim share dividend taxes for non-US instruments which you have already paid taxes, we recommend you use the GlobeTax service. GlobeTax is the third party provider Saxo recommends for tax reclaim services. See attached for how to sign up with GlobeTax.
- You may have an entitlement to be taxed at a lower “treaty” rate of tax if your country has a Double Tax Agreement (“DTA”) with the income source country, often as low as 15% or even 0%. However, please keep in mind that your country of residence may not have a DTA with the income source country.
See the attached factsheet for an overview of how GlobeTax works with Saxo clients.