Reclaim U.S. dividend
withholding tax
Nonresident investors are withheld 30% on U.S. dividends. With 60+ U.S. tax treaties, many qualify for 15%, 10% or less — and the difference is reclaimable.
United States
- Standard rate
- 30%
- Treaty rate from
- 5%
Treaty rates in this guide
Am I eligible to recover U.S. dividend withholding tax?
When a nonresident (NRA) investor receives dividend payments from a U.S. source, that income is generally subject to dividend withholding tax (DWT), typically at a standard rate of 30%.
However, as the U.S. has tax treaties with 60+ countries, many nonresident investors qualify for reduced rates – often 15%, 10%, or lower, depending on their country of residence and the terms of the relevant treaty.
Whether you’re an organizational investor, an international employee in an ESOP program, an ETF member, or simply receiving dividend income from U.S. holdings, it’s worth checking how much tax you could claim back.
U.S. DWT recovery rates
The table below outlines a sample of the current U.S. tax treaty rates. Find your country of residence to see your specific entitlement.
- Country of Residence
- Australia
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- Canada
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- European Union Nations
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- India
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 25%
- Reclaimable Amount
- 5%
- Country of Residence
- Ireland
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- Japan
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 10%
- Reclaimable Amount
- 20%
- Country of Residence
- Saudi Arabia
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 5%
- Reclaimable Amount
- 25%
- Country of Residence
- Singapore
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- Switzerland
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
- Country of Residence
- United Kingdom
- Standard USA DWT
- 30%
- Treaty Rate on Dividends
- 15%
- Reclaimable Amount
- 15%
*Note: The above list is not exhaustive.
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Create your account
Create your Sprintax Dividends account here.
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Tell us about you
Answer some simple questions about your residency, shareholdings and dividend earnings.
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We’ll run the numbers
Our software will determine your tax treaty eligibility and provide an estimated U.S. dividend tax refund for each tax year.
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Upload your documents
Upload your dividend statement and certificate of tax residency, if required.
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Claim your refund
Once your refund application is prepared, you can decide to self-file or have us manage it for you.
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Your questions. Answered.
The standard DWT rate applied by the IRS to dividend payments made to international investors is 30%.
However, the U.S. has signed more than 60 tax treaties with countries worldwide. These treaties can entitle nonresident investors to a reduced rate of tax on their U.S.-sourced dividend payments.
To reclaim overpaid U.S. dividend tax, a nonresident typically needs to submit a Form W-8BEN (for individuals) or W-8BEN-E (for entities) to their withholding agent (such as the broker or payer) certifying their foreign status and treaty eligibility.
They must then file an end-of-year tax return to reconcile their tax record with the IRS and apply for their DWT refund.
The easiest way to secure your U.S. DWT refund is to apply with Sprintax Dividends. Our software has been developed specifically to support nonresidents through the U.S. DWT refund process.
Yes – a U.S. tax number (SSN or ITIN) is essential in order to file tax paperwork with the IRS.
Many nonresidents aren’t eligible for an SSN. In these cases, they must apply for an ITIN (Individual Taxpayer Identification Number) using Form W-7.
If you need support while applying for your ITIN, Sprintax Dividends can guide you through the process.
U.S. DWT refund applications are typically processed within six months. However, in certain cases, processing may take longer depending on your specific circumstances.
To learn more about our service and pricing for U.S. DWT refund applications, get in touch with our team for a demo.