When investors receive dividends or interest from foreign securities, the paying agent generally deducts tax at the statutory, or maximum, rate in the market where the security was issued. However, qualifying beneficial owners may be entitled to a lower withholding rate under an applicable tax treaty or the issuing country’s domestic law.

We help Participants obtain available tax benefits for qualifying beneficial owners on eligible cross-border income payments. Through arrangements established with issuers, agents and tax authorities, the service supports tax relief at source, so the favorable rate is applied when the income is paid. By applying the appropriate rate earlier in the income-payment lifecycle, the service can reduce or eliminate the need for paper-based, manually intensive tax reclaims and lessen potential foreign-exchange exposure caused by delays in receiving reclaim proceeds.