Reclaim U.S. dividend
withholding tax
Nonresident investors are withheld 30% on U.S. dividends. With 60+ U.S. tax treaties, many qualify for 15%, 10% or less — and the difference is reclaimable.
United States
- Standard rate
- 30%
- Treaty rate from
- 5%
Treaty rates in this guide
Am I eligible to recover U.S. dividend withholding tax?
When a nonresident (NRA) investor receives dividend payments from a U.S. source, that income is generally subject to dividend withholding tax (DWT), typically at a standard rate of 30%.
However, as the U.S. has tax treaties with 60+ countries, many nonresident investors qualify for reduced rates – often 15%, 10%, or lower, depending on their country of residence and the terms of the relevant treaty.
Whether you’re an organizational investor, an international employee in an ESOP program, an ETF member, or simply receiving dividend income from U.S. holdings, it’s worth checking how much tax you could claim back.
U.S. DWT recovery rates
The table below outlines a sample of the current U.S. tax treaty rates. Find your country of residence to see your specific entitlement.
- Country of residence
- Australia
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- Canada
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- European Union nations
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- India
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 25%
- Reclaimable amount
- 5%
- Country of residence
- Ireland
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- Japan
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 10%
- Reclaimable amount
- 20%
- Country of residence
- Saudi Arabia
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 5%
- Reclaimable amount
- 25%
- Country of residence
- Singapore
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- Switzerland
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
- Country of residence
- United Kingdom
- Standard USA DWT
- 30%
- Treaty rate on dividends
- 15%
- Reclaimable amount
- 15%
The list above is not exhaustive. Treaty rates and eligibility change — confirm the current position for your country of residence and entity type before you file.
-
Create your account
Create your Sprintax Dividends account here.
-
Tell us about you
Answer some simple questions about your residency, shareholdings and dividend earnings.
-
We'll run the numbers
Our software will determine your tax treaty eligibility and provide an estimated U.S. dividend tax refund for each tax year.
-
Upload your documents
Upload your dividend statement and certificate of tax residency, if required.
-
Claim your refund
Once your refund application is prepared, you can decide to self-file or have us manage it for you.
Because the more you know...
Partner with
Sprintax Dividends
Managing cross-border ESOPs at your organization? Book a call with our partnerships team to learn more about how Sprintax Dividends can help.
Book a call
Save time for your team
Outsource your tax queries to Sprintax. Our team will be happy to answer your employees’ questions relating to U.S. DWT reclaim.
Dedicated partner portal
Tailor your Sprintax Dividends partner portal to your organization’s unique specifications, with custom branding, email communications, and flexible pricing options.
Expert support
We provide a range of support materials including live chat, Q&A webinars, help guides, email support & more.
Your questions. Answered.
What is the U.S. dividend withholding tax rate for nonresidents?
However, the U.S. has signed more than 60 tax treaties with countries worldwide. These treaties can entitle nonresident investors to a reduced rate of tax on their U.S.-sourced dividend payments.
How do I reclaim overpaid U.S. dividend tax?
They must then file an end-of-year tax return to reconcile their tax record with the IRS and apply for their DWT refund.
The easiest way to secure your U.S. DWT refund is to apply with Sprintax Dividends. Our software has been developed specifically to support nonresidents through the U.S. DWT refund process.
Do I need an ITIN to reclaim U.S. dividend tax?
Many nonresidents aren’t eligible for an SSN. In these cases, they must apply for an ITIN (Individual Taxpayer Identification Number) using Form W-7.
If you need support while applying for your ITIN, Sprintax Dividends can guide you through the process.
How long does a U.S. DWT refund take?
How much does it cost?
Let's get started
Contact us today to learn how we can simplify your U.S. DWT refund applications.
Chat to the team