It was announced this week that Irish tax specialists, The Taxback Group, have launched a new online platform called DiviTax to facilitate tax rebates on foreign dividends.
They are hoping that their new software will help thousands of Irish investors reclaim the withholding tax applied to their overseas dividends.
Currently, statutory withholding tax rates range from between 10% - 35%. The new platform will allow The Taxback Group to recover the excess dividend withholding tax (DWT) imposed on dividends paid to Irish and other non-resident investors.
Taxback Group Senior Vice-President, Elaine Marino said, "Irish residents regularly invest in companies located outside of Ireland.
While there are lots of good reasons to invest cross-border, one negative aspect that is often overlooked is Dividend Withholding Tax (DWT) which is taken at source. However, thanks to tax treaties, the excess tax paid on dividends can be reclaimed."
Marino added, "Most retail investors do not file cross-border DWT reclaim applications, which means that money is left on the table. The rules for filing tax reclaims can be complicated, and the paperwork required can be difficult to understand – not to mention in a different language.
We recently recovered €110,000 from the Swiss Government on behalf of an Irish property company that had received Swiss dividends for the last four years."
Source: www.businessworld.ie