Withholding Tax on Dividends

šŸ¤ Help
1

Hey, guys,

I checked my dividend payments and got very confused :confused: I might just be a noob on this topic, but I want to make sure and see what kind of explanation there could be or if at worst there might be a problem with my accountā€¦

My country has a dual taxation treaty with the US so that only 10% of a dividend payments are be withheld. Seeing that w-8ben does get filed with Trading212, this should apply yo my account.

Problem is, my first 2 dividend payments were taxed 30% first on a REIT (Healthpeak Properties) and then on a company (Audiocodes). But the last 2 dividends I have recieved were only taxed 10% on Intel and 3M, as you would expect.

Iā€™m pretty sure Audiocodes is not an ADR or anything like thatā€¦ So I wouldnā€™t think that it didnā€™t count as a US corporation :thinking:

And would REITā€™s be treated differently as far as withholding tax is concerned?

Here are the screenshots for the dividend payments and I would appreciate an explanation or any experiences like this one to see what is going on! :slight_smile:

Hopefully Iā€™m just a noob about how this works :stuck_out_tongue:

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2

In principle you check headquarters for company, aka which country is source of income.
Listing can be on NYSE, doesnā€™t mean company is based in USA.

Anyway with that said, I have no clue on those 2 companies, if they are based in US, but I would definitely first check that. If true, would contact support as this is account specific. They will sort it out for you.

3

Iā€™m also confused about that because Audiocodes has 2 HQā€™s, one in Israel and another in the US, thatā€™s why itā€™s not an ADR I think

And in Healthpeak Propertiesā€™s case, itā€™s a wholly American real estate investment trust, but maybe It doesnt quite count as a corporation that pays dividends? Since itā€™s more like real estate rent.

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4

If I read this right, Witholding tax is 25%. Maybe Israel is source of income?

Blockquote
In accordance with Israeli tax law, the dividend is subject to a withholding tax at the source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions.
Blockquote

5

Interesting! :0

I think you may be right, the withholding tax is not quite 30% as I thought, itā€™s more like 25% ish or something like that for Audiocodes since declared dividend was 14 cents. I would have gotten 10 cents instead of 11 cents if It had actually been a 30% tax.

Itā€™s definitely Israeli law then I think at least in Audiocodes case :thinking:

Although Iā€™m still not sure about Healthpeak, it should still be 30% tax there based on my numbers. 37 cents declared and only 26 cents recieved per share.

It is looking like there might not be any issue with my account though :slight_smile: