Withholding tax: Obstacles and Trends in 2022
Withholding tax (WHT) directly affects a shareholder’s return on investment. Accordingly certain changes in tax legislation will play a crucial role in wealth management decision making. Learn more about trends in foreign investment taxation and recovery, as well as the most common obstacles encountered.
Why is withholding tax (WHT) important in wealth management?
The relative return that can be recovered from a reclaim is significant when compounded. Given the complex nature of WHT reclaims, investors often get lost in the intricacies of the process – which results in a considerable lost recoverable opportunity. The tax landscape is ever-evolving, a thorough knowledge of the changes of global tax policies is needed to ensure the best outcome for your investment.
Billions of dollars’ worth of investments are recorded every year, and that number is continuously growing. Individuals are constantly looking for more ways to ensure that their wealth is maximized. However, a lack of knowledge and understanding in foreign tax office procedures proves to be an insurmountable impediment to their efforts. Accordingly, taking advantage of the necessary resources available to do so, especially abroad, has become critical.
In fact, the majority of international investors are owed close to 50% of their tax back, but this
money is hardly ever recovered. By understanding withholding tax and making use of a withholding tax (WHT) specialist, you could avoid being one of these investors.
Specialists know the ins and outs of foreign withholding tax laws – even when laws change. Let’s discuss some of the common issues faced when trying to recover withholding tax.
5 most commonly encountered obstacles in WHT recovery
1. Admin-heavy processes
2. Language barriers
3. Specific filing requirements and Lack of Guidance
4. WHT reclaim deadlines
5. ECJ claims drawback