Dividend withholding procedures for foreign stocks traded in Japan
Foreign stocks listed for trading in Japan which issue dividends will have the cash dividend allocation subject to an increased withholding tax rate. The tax will vary based on the domicile of the stock issuing the dividend; however in general the withholding rate will be the highest withholding rate applicable and will not incorporate a reduction based on prevailing tax treaties…
I am not a US taxpayer and I understand that tax withholding on "payments in lieu" on US stock may be at a different rate from tax on dividends paid on US stock. What rate of tax will your system apply to payments in lieu of dividends in my case?
The US imposes the same tax withholding rates for both dividends and payments in lieu for non-US taxpayers. The default rate is 30%; however, a lower rate may be applied if you qualify for the benefits of a US tax treaty…