|
Withholding Tax is a cross border issue. When you, your fund or your clients receive income from international investments, you can be taxed at a high foreign "withholding" rate. You may be eligible under Double Taxation Treaties, to be taxed at a lower "Treaty" rate. You are eligible to reclaim the difference. The foreign tax authority keeps your money for a set period (Statute of Limitati-
ons). If you don't claim it back, you lose it. |
So, now you're going to try and get your tax back.
It's complex. The amount and speed with which you can recover depends on who you are, how the tax authorities view you, the type of income you earned, the country the income came from, and the applicable tax rates.
The administrative procedures you follow also have to take into account a complex network of custodians, withholding agents, brokers, depositories and in-country agent banks.
|
The tax reclaim forms that you have to complete are difficult and often multi-part (up to 5 sets!). You need to obtain them or have expensive software to re-create them and get tax authority approval to use them. Interpreting applicable tax treaties is a full time job, as is keeping up to date with changing tax reclaim procedures. Printing forms, signing them and sending them to the right people at the right time, is not an easy task. |
Make a mistake and your reclaim will be rejected. If you're really lucky, the tax authority might tell you what was wrong with it!
So, you have to make sure that things are done correctly, otherwise they can spiral out of control.
The result? Many don't recover their tax at all. For investors it's a loss and a reduction in
investment return. For custodians, funds and intermediaries it's a potential risk
and liability. |
We take away all this hassle. Our relationships with tax authorities, our dedicated teams of experts and our major investments in IT all mean we can get you and your client's money back.
Our volume exceeds 1.7 million reclaims for our clients annually. If they outsource it to us, maybe you should too?
Click here to download an Outsourcing Fact Sheet.
|
