Know More About International Withholding Tax Recovery
There is a great deal to be gained from understanding the inner workings of international withholding tax (WHT) recovery – especially when it comes to dividend income. Institutional investment firms stand to increase their clients’ ROI on foreign investments by up to 0.5% by simply unlocking the various dividend WHT reclaim methodologies. If you want to know more about international withholding tax recovery, this article will provide a good foundation.
Withholding Tax Refunds: Unlocking 0.5% Increase in Fund Performance
While global markets continue to recover from the COVID-19 pandemic and uncertainty still lingers around the immediate future of dividends, investment firms should be looking for sound and innovative ways to boost investment performance.
To Accrue or Not to Accrue — That is the Question
Should you be accruing for withholding tax recoveries on foreign investment income or should these recoveries should rather be accounted for on a cash basis? In the accounting world, the eternal goal is to ensure that financial records accurately reflect the financial position of a particular entity at a point in time. This generally means accounting for transactions when they occur as opposed to when the cash implications are felt.
The Race to Withholding Tax Recovery – Statutes of Limitations
Withholding tax recovery opportunities unfortunately don’t exist forever. Every investment market has a statute of limitation for withholding tax (WHT) recovery claims to be filed. This means that each claim has an expiry date and the claims must be filed before this date, to ensure that the recovery is not lost.
Tax Exemption for CITs
Collective Investment Trusts (CITs) or group trusts as they are commonly referred to, are addressed in Internal Revenue Service (IRS) Revenue Ruling 81-100 (as modified by Revenue Ruling 2004-67, Revenue Ruling 2011-1 and Revenue Ruling 2014-24). The IRS provided special dispensation for CITs in the form of exemption from income tax to ensure that these structures can be used to pool assets of various qualified retirement plans, individual retirement accounts and other similar plans without creating unnecessary income tax obligations. The goal is to ensure that pension-related money and the...
Cayman LLCs – Unlocking Withholding Tax Recoveries through a Unique Investment Vehicle
For many years, the US investment vehicle landscape has had a strong affinity to Cayman domiciled structures. Immense benefits can be achieved for US tax-exempt investors as well as non-US investors in US structures through the use of offshore, Cayman Islands domiciled feeder funds. However, in setting up these structures, withholding tax (and the ability to reclaim taxes incurred on foreign investment income) is often overlooked.
Companies Turn to Withholding Tax Recovery Opportunities as Dividend Payouts Plummet
2020 has certainly been a challenging year and very few corporates around the world will be unaffected by the COVID-19 pandemic. It’s no surprise that dividend payouts have decreased drastically and in this uncertain time, it’s difficult to predict how long this downturn will last.
Withholding Tax: The Quintessential Guide to European Court of Justice (ECJ) Claims
What is the European Court of Justice in the context of Withholding Taxes? All countries that form part of the now 27-Member States of the European Union (EU) are subject to the laws and regulations set by the EU. The Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) are the two main sources of EU law.