Withheld Tax: US Pension funds

The dividends earned on investments in foreign stocks are frequently taxed at a higher rate. These rates vary by country. An investor may qualify for a partial return of this withheld tax depending on their country of residency. However, there are some investors that are completely tax-exempt. An example of these tax-exempt investors is pension funds. Often, withholding tax (WHT) causes U.S. pension funds to lose a substantial portion of their investment revenue. However, pension funds and other zero-rated beneficial owners frequently have the right to reclaim all their overseas withholding tax. Whereas regular beneficial owners typically have the right to recover half of the withholding tax that has been deducted.

A Full refund for US Pension Funds

Several of the most popular international investment destinations for U.S. pension funds are among the nations that recognize tax exemption. Investors must, however, make these claims of residency and stock ownership directly to the foreign tax authorities. However, this is typically a challenging and time-consuming process. In order to submit tax refund applications, certification of residency with the IRS must be reissued each year. This, however, can be a complex task due to the fact that the financial institution frequently does not support this function. Additionally, investors may also have trouble interacting with their custodian or broker.

Global investors and financial intermediaries can use the services offered by Global Tax Recovery. GTR’s service offering covers all the relevant investment jurisdictions and has a global network of specialists on the ground waiting to assist. These teams are able to meet any client’s specific needs and are experts in their local jurisdictions.

GTR’s thorough knowledge of both international tax law and foreign tax office procedures ensures that we resolve your specific claim successfully and in the shortest possible time. Get in touch today!