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Eni SpA Message Board

  • sapnetkram sapnetkram May 25, 2012 10:03 AM Flag

    ENI dividend tax withholding for US residents

    Guys,

    We have a tax treaty with Italy, but I'm seeing fidelity take out 28% withholding on my dividends instead of 15%. I see that brokers can apply for a refund on withholding from the Italian government referencing the tax treaty. Does anyone with a US account enjoy 15% withholding? what did you have to do to get it?

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    • Fidelity has reclamation tax services. Your withholding will be based on treaty between US and Italy.

      Scottrade has no reclamation tax services. It is not advisable to use Scottrade in your retirement account if you invest globally.

    • Update:

      Looks like Italy may have cut its statutory withholding rate to 20% for this payment:
      http://www.dtcc.com/downloads/legal/imp_notices/2012/dtc/div/0763-12.pdf

      If you own 700+ shares, you can probably lower your tax bill by submitting this form. But the fee for the refund looks to be $40.

      Let me know if anyone has had success getting a 15% rate.

      • 1 Reply to sapnetkram
      • •Each country has a rate at which taxes are withheld on dividends distributed by a domicile company. However, most countries have a tax-treaty with the U.S. as well. Some of these treaties have a provision that brings down the rate at which taxes are withheld for U.S. resident investors. Unfortunately, this isn't as straightforward as it should be. It appears that the reduced rate of foreign taxes requires the broker or the depository receipt bank to file appropriate paperwork with the foreign authorities to get a lower rate of return. This means that withholding rate may differ for different investors depending on who their broker is.
        •In some cases, the individual investor may be able to file paperwork independently with the foreign tax authorities and claim the difference between the typical withholding rate and the reduced rate for U.S. investors. However, I have personally never tried it and do not know of any fellow investor who has used it so am not sure how easy or effective it is.

        The Scottrade took out my dividend 25% before, and now is 20%, never get 15 %.

 
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