Thnx, I didn’t notice that. So in the case of dividends from US companies, it doesn’t matter where the t212 is registered but where the investor is located. In the case of dividends from UK shares, it does not matter where the investor is located but where T212 is headquartered?
basically UK stocks don’t have a withholding tax, so there’s currently no issue, but since brexit and other politics have occurred between the UK, US and EU. there’s no telling if one may be added and what the rates are going to be and how the T212 UK/EU entities will be affected.
some users live in countries where the T212 registered location affects the paperwork they have to file each tax year, so moving from the UK to EU entity will have a noticable impact.
for the US, your country of residence is what matters. unfortunately as Croatia does not have a double taxation treaty with the US, you face the full 30% for US dividends. however, you should check if you can use that as a deduction towards your total taxation.
I apologize in advance if I am mistaken, but I am a bit confused on how my tax residence and T212 registered location affect the withholding tax.
If someone is from Croatia a country where there is no tax treaty with the USA a withholding tax of 30% will be applied. If someone is living in Netherlands and invests in Dutch companies, in theory there should not be a withholding tax, but since the receiver of the dividend is T212 located in the UK a withholding tax of 15% is applied.
So with the same logic, since the dividend is received by T212 from a USA listed company in theory only 15% withholding tax is applied, and then T212 redistributes the dividend to the shareholders from countries with no tax treaties with a withholding tax of 30% (as it should be since their countries do not have a tax treaty). What happens to the 15% of the dividend? Does T212 keep it for their benefit?
That was exactly the point of my comment. If T212 owns my shares and dividend tax is paid based on where T212 is headquartered, the US would retain 15% of dividend tax given that T212 is headquartered in the UK.
The only thing I wasn’t sure about was whether the different rules apply to the US since we send them (not t212, but each client personally) a w8ben form stating tax residency, which we don’t do for other countries.