DTC’s U.S. Tax Withholding Service helps non-U.S. participants manage U.S. non-resident alien withholding tax on dividends, interest and other U.S.-sourced income paid on securities held at DTC. Acting as a U.S. withholding agent, DTC determines the applicable treatment based on the type of income and the tax forms, certifications and withholding instructions provided by the participant.

By automating elections across available treaty and statutory tax-rate pools, the service can eliminate the need to maintain separate accounts for each rate, support more consistent withholding and reporting, and reduce manual processing. It also allows Qualified Intermediaries to use omnibus accounts at DTC while managing customer and proprietary positions in accordance with applicable IRS rules, helping participants strengthen operational control and provide more efficient service to their clients.