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Keeping withholding tax at bay

Is it possible to stop withholding tax eating into your returns? James Capper, Senior Tax Manager in BDO’s Private Client Services Team, outlines how withholding tax works
January 7, 2014

Whether you are looking beyond UK equity markets for better returns, or corporate takeovers and mergers have left you with shares listed overseas, withholding tax (WHT) can have a significant impact on your net returns.

How WHT works

In many cases, when a dividend is paid by a company resident in one country to an investor resident in another, WHT is deducted from the dividend before a net amount is paid over. Rates of WHT vary from country to country.

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