Withholding tax refund
When a non-resident receives FDAP (Fixed Determinable Annual and Periodic), or passive income from U.S. sources, the U.S. payer is generally required to withhold a tax of 30%. If the non-resident recipient is a resident of a country that has a tax treaty with the United States, it is possible that some or all of the tax withheld may be recovered under the provisions of the tax treaty. Click here for a list of countries that have an income tax treaty with the United States.
Passive income includes interest, dividends, royalties, rents, etc. Non-resident recipients of such income are required to provide the U.S. payers with a completed Form W8-BEN. Sometimes this form requires a U.S. Taxpayer Identification Number - SSN or ITIN which may not be available.
If you have been asked to provide a completed Form W8-BEN and you need assistance, or if you have already received U.S. sourced income where the payer has withhold tax that you believe may be recoverable, we would be glad to review your case and discuss further.
Please contact us via our inquiry contact page.