TaxTec report reveals extent of withholding tax issue
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TaxTec report reveals extent of withholding tax issue 04 November 2024UK Reporter: Clelia Frondaroli
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TaxTec has unveiled a new report, revealing the amount of withholding tax on foreign dividends and interest payments remains unreclaimed.
The amount, an estimated US$16.4 billion, is left unclaimed for a number of reasons, including that the reclamation process remains bureaucratic and complex. As a result, the study reveals that US cross-border investors lose out on over US$3.8 billion in rightful returns.
Highlighting the extent of the issue, Stephen Everard, CEO of TaxTec, states: "While some progress has been made over the past decade in withholding tax reclamation rates, there is still a long way to go."
“These returns belong to investors and it is the ethical duty of all market participants to ensure they are not left unnecessarily on the table. Double taxation treaties were set up to ensure that investors are not taxed twice, yet lack of reclamation on a proportion of rightful income is effectively allowing double taxation to continue.”
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