Our withholding procedure for Regulated Investment Companies (RICs) is that during the year we code RIC distributions as ordinary dividends and then, after the close of each year when we receive the final allocation information from our tax services vendor as part of the industry-standard reclassification process that takes place beginning in late January, we reclassify the RIC distributions according to their final classification and refund any excess withholding taxes at that time.
The maximum withholding rate that can apply to a RIC is 30% (if you do not qualify for the benefits of a double tax treaty between the US and your country of tax residence), but in certain cases RICs can allocate a portion of their distributions to income that is exempt from US withholding tax, so the rate can vary depending on the RIC's income and other factors, and can change from year-to-year.
Kindly refer to the prospectus for the specific security in question, contact the issuer and/or consult a tax professional regarding the consequences of investing in US-based RICs based on your particular circumstances.