FAQ

What is withholding tax?

Withholding tax is tax withheld from dividends, coupon interest and royalties. This tax is withheld in the country where the income comes from, the source. For example, if you receive dividends from a German share, then the withholding tax on these is also withheld in Germany.

Why is withholding tax recoverable?

Dutch investors also pay tax in the Netherlands on their the foreign investments. To avoid double taxation, the Netherlands has made agreements with other countries about the maximum tax. These agreements are laid down in a so-called double taxation treaty. Based on these regulations, it is possible to reclaim excess withholding tax paid.

Is the same percentage of withholding tax withheld in each country?

No, each country determines its withholding tax rate independently, establishing the percentage to be deducted from gross proceeds

Does the Netherlands have many double tax treaties with other countries?

Yes, the Netherlands has a double tax treaty with many countries. This makes it possible to reclaim withholding tax in most countries if more tax is withheld than agreed in the treaty.

Is all withholding tax withheld abroad recoverable?

Unfortunately, no. How much withholding tax can be recovered depends on two things. First, it is important what the withholding percentage is in relation to the gross dividend. In addition, the agreements between the Netherlands and the country where the dividend is paid must be considered.

How is a recovery filed?

In most countries, a form accompanied by proof of tax withholding and residency of the recipient must be delivered to the foreign tax authority. In some countries it is possible to send in this information directly, in other countries it must be done through your bank. Your bank may charge extra for this.

How do I obtain proof of tax withholding?

If you require a dividend statement, you can request it from your bank, though they may impose a fee for this service. Furthermore, in specific countries such as Germany, you might also require proof from the local paying institution. It's important to be aware that some banks may pass on these associated costs to the customer.

Does every country use the same form?

Nee, ieder land heeft een eigen formulier en volgt eigen procedures. Hierdoor ervaren veel beleggers, banken en vermogensbeheerders het terugvorderingsproces als complex. The Reclaim Company heeft zich gespecialiseerd in de terugvordering van bronbelasting en kan u hierin ondersteunen.

What does the possible application of tax treaties mean for me, as an investor in other countries and recipient of dividends from abroad?

This means that as an investor, based on the agreements stipulated in the tax treaty, I am entitled to a refund of the excess withholding tax withheld. In order to receive this excess tax paid, a refund request will have to be filed in the country of withholding.

Will a bank statement also suffice, instead of a dividend statement?

No, unfortunately not. A dividend statement is required for withholding tax recovery.

What can The Reclaim Company do for me?

The Reclaim Company unburdens you as much as possible when reclaiming withholding tax. Among other things, we ensure that:
1. The correct form is completed quickly and correctly.
2. Your bank or asset manager, if any, is properly informed of the process so that there is little or no delay.
3. The form is supervised until distribution, so that the investor actually receives the money to which they are entitled.

If recovering withholding tax increases my returns, why don't I hear anything about this from my bank or wealth manager?

Your bank or wealth manager may not know that a withholding tax reclaim can be filed or what the procedures are for doing so. If your bank or asset manager does have the necessary knowledge, it is still possible that reclaiming withholding tax is not part of the service. The reclaim process is not supported by most banks and asset managers; after all, it does not directly involve trading or investing. Client requests to proceed with reclamation are often perceived as "inconvenient. In many cases, the institution in question lacks knowledge and/or experience. The result for the customer is usually that no recovery can be made or that the costs involved are so high that it is not profitable.

How do I get proof of my Dutch residency?

Through the Dutch tax authorities. If you use our services, The Reclaim Company will take care of this for you.

If I use the service, do I pay only the fees charged by The Reclaim Company?

Your bank may charge additional fees, such as for the production of a dividend statement.

What do I need to do to use the services of The Reclaim Company?

To prepare the form, we need the following information from you:
- A dividend statement, obtainable from your bank or trustee.
- Your personal information.
- Your signature on the completed form.
We will prepare a contract based on your information and send it to you for signature. Upon receipt of the signed contract, we will begin the work and creation of the forms.

What does The Reclaim Company do with my personal data?

Your personal data is needed to create a contract and your form. We treat your data confidentially, in line with the Data Protection Act. It is not possible for third parties to access our database with customer data. We therefore do not use your data for other purposes or further acquisition.

How long will it take before I can expect the money?

This varies from country to country. In general, the money is disbursed within a year of filing the recovery.

Can The Reclaim Company receive the recovered amounts on my behalf and forward them to my checking account?

No, unfortunately that is not possible. The payment of your recovery will never be received into or through an account of The Reclaim Company. The Reclaim Company is not a banking institution and is therefore not authorized to do so. Therefore, receipts of amounts will be made through your investment bank or wealth manager.

If, while preparing the form, it turns out that the cost of recovery exceeds the revenue, what happens?

If so, we will not prepare a form and therefore you will not have to pay anything to The Reclaim Company. Only if you explicitly indicate that the recovery should still be continued will we continue the process.

My bank or asset manager will not or cannot provide a dividend note, let alone cooperate with the further process if necessary. So is it still possible to recover withholding tax?

No, without the cooperation of your bank or wealth manager, it is unfortunately not possible to reclaim withholding tax.

Contact

Address

Korenmolenlaan 1A
3447 GG Woerden
The Netherlands

Get in touch

+31 (0)348 418 557

info@thereclaimcompany.nl