Please note that Saxo does not provide tax advice. Tax treatment depends on your individual circumstances and may change due to amendments in legislation, tax treaty provisions, market practice or your tax residency status. If you are uncertain about the tax consequences of your investments, you should seek advice from an independent professional tax adviser.
Taxation on foreign (European) securities
When investing in foreign securities, foreign withholding tax applies to income paid from those securities. In general, the statutory rate will apply even if there’s a Double Taxation Treaty (DTT) agreement between the country you live and are taxable to and the country you invest in.
In many markets, you can submit a tax reclaim directly to the relevant tax authority after the income payment has been made.
Before submitting a tax reclaim, you should verify:
- Whether a DTT agreement exists.
- Your eligibility for treaty benefits.
- The required supporting documentation.
- Applicable filing deadlines and statutory limitations.
The reclaim process varies by country. Please refer to the relevant tax authority for detailed instructions.
Saxo cannot guarantee the outcome of any reclaim application submitted to a tax authority.
Examples | |
|---|---|
Country of incorporation |
How to make a reclaim |
| Norway |
Follow the instructions with the Norwegian Tax Authorities:
Refunds of withholding tax on dividends for foreign shareholders - The Norwegian Tax Administration |
| Denmark |
Follow the instructions with the Danish Tax Authorities:
|
Taxation on US securities
US securities are in general subject to a statutory withholding tax rate of 30% on income distributions. Many countries have double taxation treaties with the US. Individuals or corporations that meet the criteria under the applicable tax treaty may apply for a reduced withholding tax rate on US-sourced income distributions.
Please see the specific tax treaty with IRS: United States income tax treaties - A to Z | Internal Revenue Service
You must complete a W-8 form to comply with FATCA regulations. (see the article W-8 forms explained for guidance on W-8 forms)
Income distributions on US securities
The same security may generate different types of income, each of which may have its own tax treatment. The tax treatment may vary depending on the nature of the payment, including:
- Dividends.
- Bond interest (coupon payments).
- ETF distributions.
- REIT distributions.
- Partnership distributions.
US dividends
If you fill out a W-8 form where they apply and are eligible for treaty benefits, you can receive reduced withholding US tax on US dividends according to the Tax Treaty Agreement.
US interest / coupon payment
If you fill out a W-8 form, you will receive tax exempt interest payments from US bonds. This may apply even if you live in a country that does not have a double taxation treaty with the US, such as Singapore.
US securities in the US market
Please note that the reduced taxation only applies for securities deposited in the local US market. If US securities are deposited in other markets, such as Euroclear, reduced withholding tax cannot be applied.
Tax voucher
A tax voucher is an official document provided by financial institutions, such as banks or investment firms, that details the income earned from investments, such as dividends, interest, or capital gains, and the taxes that have been deducted from this income.
The tax voucher serves as a record of the taxable income and the tax paid, which can be used for tax reporting purposes. It can also serve as proof of the tax paid through Saxo when you need to reclaim tax from the authorities.
If you need a tax voucher from Saxo to submit a tax reclaim, please request it from your platform as explained below:
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SaxoTrader: Click Main menu
> Request account services > Request a Tax Voucher
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SaxoInvestor: Click Main menu
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SaxoTrader desktop: Click Main menu