US 25% Witholding Tax on Dividends

G

Gaia

Guest
Witholding tax of 25% is being applied to my US share dividends even though form W-8BEN has been submitted. I have queried this with my US broker and recieved the following response:

The W8-BEN on file for your account directs us to withhold taxes per the tax treaty between the United States and Ireland. To claim an exemption you will have to provide us with documentation as to why you are qualified to receive this exemption and as to what part of the treaty you are referencing to claim the exemption.

Can I claim exemption and pay my taxes in Ireland?
 
Are you sure that you completed the W-8BEN form correctly. It should exempt you from some witholding tax. On the other hand maybe 25% is the rate after any non resident "discount"? You should be able to get a credit against your Irish income tax liability on dividends in respect of the US witholding tax as far as I know. Check the details of the Ireland-US double taxation agreement if necessary (on www.revenue.ie ). If the amounts are substantial then you might want to get professional advice.
 
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