withholding tax on shares dividends..

[postman pat]

Hi.
I have some USA and european shares that I receive dividends from, Tax is already taken from these when I receive them and I declare and pay irish tax on the net figure I receive.My question is can i reclaim any of this witholding tax or use it as a credit against irish tax paid..


Pat

 

[Boyd]

For US you can't reclaim the tax but you get a credit for it when you declare the dividend to revenue. However you should be declaring gross dividend for US shares, not net.

 

[postman pat]

Thanks username... Why gross though?..and how does the credit work?

 

[Gordon Gekko]

- Dividend of $100 from Coca Cola
- You receive $85
- You include the gross dividend ($100)
- Income tax of (say) $40 (40%)
- Credit of $15
- Net payable $25

 

[joe sod]

With regard to UK stocks there is no dividend withholding tax is my understanding. However I just noticed that my broker (based in UK) has been deducting a "UK tax credit" from my dividends. As far as Im concerned they are wrong but does anyone have information on this.

 

[Gordon Gekko]

With regard to UK stocks there is no dividend withholding tax is my understanding. However I just noticed that my broker (based in UK) has been deducting a "UK tax credit" from my dividends. As far as Im concerned they are wrong but does anyone have information on this.

Ignore that...it's purely notional