South Africa’s WHT on Dividends: Reclaim Tips for Foreign Institutions
Understanding WHT on Dividends in South Africa South Africa’s dividend tax regime directly affects the net returns of foreign institutional investors. A 20% withholding tax (WHT) applies to dividends paid by South African companies to non-resident shareholders. Although tax treaties may reduce this rate, many investors face difficulties reclaiming overpaid amounts. The process is especially […]
Withholding Tax and Global Sanctions: When Compliance Blocks Refunds
Introduction: A Shifting Global Landscape Withholding tax (WHT) recovery plays a key role in helping cross-border investors reduce tax drag on dividend income. But today’s geopolitical tensions are complicating the reclaim process. Sanctions, once a foreign policy tool, now impact how tax authorities and financial institutions handle WHT refunds. Investors must understand how global sanctions […]
When Relief-at-Source Fails: Recovering Overpaid Withholding Tax
Withholding tax on dividends remains a major challenge for institutional investors and cross-border asset managers. Relief-at-source mechanisms were designed to simplify the process by applying reduced treaty rates at the time of payment. In practice, however, these mechanisms often fail. Overpayments of withholding tax are common, creating costly and time-consuming obstacles for investors. When the […]
Dividend Tax and SPAC Investments: A Withholding Perspective
In recent years, Special Purpose Acquisition Companies (SPACs) have re-emerged as a favoured investment vehicle in global capital markets. Their unique structure allows private companies to go public through a reverse merger, bypassing the traditional initial public offering process. While investors are often drawn to the potential for quick returns, there is a lesser-known but […]
Why Your Tax Reclaim Was Denied: Common Errors
Withholding tax (WHT) on dividends is a persistent challenge for international investors. Institutional investors and pension funds often seek to reclaim excess WHT charged by foreign tax authorities. However, many claims are unsuccessful. Denials usually arise from avoidable errors. Understanding common mistakes can help investors improve their reclaim success and navigate dividend tax regulations across […]
Dividend Tax Timing: Does the Payout Date or Ex-Dividend Date Matter for WHT?
In the world of international investing, timing matters—especially when it comes to dividend taxation. Many investors focus on dividend yields, tax treaties, and cross-border compliance, yet often overlook one crucial detail: whether the ex-dividend date or payout date triggers withholding tax (WHT). Knowing which date counts can improve your dividend tax recovery strategy, reduce tax […]
Top 5 Treaty Renegotiations in 2025 That Affect Foreign Investors
In 2025, the international tax landscape is shifting. Several treaty renegotiations now affect how foreign investors manage dividend tax and withholding tax (WHT). These changes are key for investors using tax treaties to avoid double taxation on dividend income from overseas shares. For investors, pension funds, and tax advisers, it is crucial to understand these […]
Why Custodians Are Under Pressure to Prove Tax Compliance
In today’s financial environment, custodians are under growing pressure to prove tax compliance—particularly regarding dividend tax and withholding tax (WHT). Regulators around the world are enforcing stricter rules and demanding transparency. As a result, custodians now carry greater responsibility for tax-related matters. Their role extends beyond safeguarding assets to ensuring compliance with complex global tax […]
Digitising Your Tax Documents: What You’ll Need for 2025 Claims
As global tax regulations grow more complex, investors and financial professionals are turning to digitisation to simplify tax compliance and maximise recovery. For 2025 claims, especially those involving dividend tax and withholding tax (WHT), having your tax documents in a digital and organised format is essential. This article explains why digitising your tax records matters, […]
Unlocking Dividend Withholding Tax Reclaims: New US-Denmark Pension Fund Agreement
In a significant update for pension funds investing across borders, Denmark and the United States recently signed a Competent Authority Arrangement (CAA) that clarifies the definition of “pension fund” under the existing Double Taxation Agreement (DTA). This clarification significantly impacts withholding tax reclaims on dividends, providing substantial refund opportunities for pension entities. Background Effective from […]