نقلاً عن [Steuern: So gibt’s die Quellensteuer auf ausländische Dividenden zurück]

News Brief: As the dividend season unfolds, investors face challenges reclaiming foreign withholding taxes. Many are leaving billions unclaimed due to complex processes and high costs.

Investors in foreign stocks often encounter dual taxation, with both foreign and German tax authorities imposing withholding taxes on dividends. Despite existing double taxation agreements, reclaiming excess taxes can be cumbersome and costly, leading many to forfeit billions annually. While some countries, like the U.S., offer pre-exemption options, the process remains complex and varies by jurisdiction. For instance, obtaining necessary tax vouchers can be expensive, and some banks charge high fees for assistance. The EU’s upcoming Faster Directive aims to streamline these refunds by 2030, but concerns about costs persist. Start-up Divizend offers a digital solution for reclaiming taxes across 13 countries, charging a percentage of the refunded amount. However, traditional banks in Germany have shown little interest in collaboration. Investors are urged to stay informed and consider alternative solutions to navigate this intricate landscape.

Original Source: www.handelsblatt.com