DiviTax News

Austrian Withholding tax increase on dividends
4th January 2016

A recent tax reform to raise taxes in Austria has become live. Under law passed by the Austrian Government last July, the Austrian withholding tax rate on dividends paid to non-residents is now 27.5% (increased from the previous rate of 25%).

The higher rate of tax came into effect on 1st January 2016.

New Income tax treaty between Switzerland and Argentina
23rd November 2015

A new income tax treaty has been signed between Argentina and Switzerland which comes into effect on 30th November. The new treaty provides for reduced rates of withholding tax on dividends, interest, capital gains and royalties providing that all requirements of the treaty are fulfilled.

From 30th November, the withholding tax rates will be as follows:

  • Dividends: 10% withholding tax rate when ownership is greater than 25%; 15% for ownership less than 25%
  • Interest — 12% withholding tax rate
  • Royalties — 3%, 10% or 15% withholding tax rate, depending on the type of royalty payment
  • Capital gains — 10% withholding tax rate if the ownership stake in the capital investment is 25% or more; 15% withholding tax rate in all other instances

Swiss investors with shares in Argentine companies will now have to pay Argentina’s wealth tax of 0.5%.The new treaty rates are effective retrospectively from 1st January 2015.

Deutsche Bank announces major restructure
19th October 2015

Deutsche Bank is splitting its investment bank in two in a ‘fundamental’ overhaul announced yesterday.

The German heavyweight lender is making several changes to personnel with Colin Fan (Co-Head of Investment Banking) and Michele Faissola (Head of Asset Management) leaving and a radical reshuffle in the pipeline.

Paul Achleitner, Chairman of the Supervisory Board, said: ”Deutsche Bank rarely underwent such a fundamental reorganization in its history. This also requires tough decisions. I would like to stress that all parties involved have tried to achieve the best possible outcomes for Deutsche Bank, having set aside personal interests. For this, and for their contributions in the past years, we would like to thank those executives leaving the company.”

Deutsche Bank is also getting rid of its group executive committee, which is made up of 19 senior managers, and making significant changes to the management board.

The announcement comes after Deutsche Bank announced a record pre-tax loss of €6bn in Quarter 3.

Volkswagen Share Price falls after Clean Air ‘Cheat’
21st September 2015

The Volkswagen share price has dropped in wake of it issuing a public apology over software in US cars which enabled them to ‘cheat’ pollution tests.

The Environmental Protection Agency (EPA) in the US has accused Volkswagen of fitting over 480,000 diesel vehicles with a device that violates the Clean Air Act.

In a letter to the company, EPA outlined the scale of the violation which affects US cars manufactured between 2009 and 2015 including the Passat, Beetle, Jetta and Golf.

Volkswagen Chief Executive, Martin Winterkorn said “I personally am deeply sorry that we have broken the trust of our customers and the public. We will co-operate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case.”The Volkswagen share price dropped 14% when the markets opened this morning.

Markets affected by devalued Chinese yuan
12th August 2015

China’s weakening yuan has continued to put pressure on stocks, currencies and the dollar after the country devalued its currency by 2% yesterday.

The move was made by the People’s Bank of China in a bid to reduce borrowing costs and make exports more competitive.

Across Europe, car manufacturers and luxury goods companies took a hit as stock markets fell.

The devaluing of the Yuan has added to concerns about the Chinese economy which is experiencing a slow-down.

DiviTax Media Coverage
20th July 2015

DiviTax got good media coverage this week with the Irish Times, Evening Echo and Businessworld.ie all featuring pieces about our software. In the Irish Times Business section journalist Dominic Coyle wrote about how DiviTax has been introduced to simply the dividend withholding tax recovery process.

He spoke to our Senior Vice President Elaine Marino to get an insight into how it works. You can read the full Irish Times story here.

Dividend withholding tax is often mentioned in the press due to the high refund potential. If you’d like to know more about DiviTax, register for a free demo.

UK Dividend Tax Reform
8th July 2015

UK Chancellor George Osborne announced a ‘major and long overdue reform’ to UK dividend tax in his Summer Budget this week. Under the new rules, the first £5000 of dividend income will be tax free and the rates of dividend tax will be set at 7.5%, 32.5% and 38.1%.

The dividend tax changes, which come into effect in April 2016, will lead to savings for Irish investors who hold shares in British companies.

The Summer Budget heralded a major reform of UK dividend tax. You read the full Summer Budget 2015 speech here.

€110k DWT refund comes for Irish investor
1st June 2015

We’re always trying to raise awareness about how lucrative dividend withholding tax refunds can be. A client of ours recently got back €110k in overpaid tax, significantly boosting his return on investment.

The client had received several dividends from German and Swiss companies he held shares in. We filed tax returns for the 2011, 2012 and 2013 tax years and, thanks to the existence of tax treaties, we were able to claim back a significant amount of tax.

If you’re a non-resident shareholder as many investors are, you could be eligible to claim back excess dividend withholding tax. Check out our DWT refund calculator for an instant estimation.

Rise in DWT queries from HR Managers
3rd May 2015

We’ve noticed a surge in the number of DWT queries about company share schemes coming in from HR Managers.

Providing share options for staff is a popular way to add value to staff benefits nowadays. However, for overseas employees, dividends may be subject to withholding tax which can be significant.

Our dividend withholding tax refund service is a good way for companies to add value to their employee benefits package with no extra cost or administrative burden to them.

Over the last few years, we’ve become involved with more and more multi-national companies to facilitate dividend withholding tax refunds for their non-resident employee shareholders.

If you’re a HR manager interested in finding out more about how our DWT service works, download our brochure below.

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Countries with the highest rates of DWT
15th March 2015

Dividend withholding tax is applied to the dividends paid to non-resident investors. In some cases, this can be a significant amount of tax. We are often asked what countries have the highest rates of DWT so we have put together a useful table. The table below outlines the tax treaty rates that are applicable to an Irish-resident investor.

Investment Country Statutory Withholding Rate Tax Treaty Rate (Irish individual) Potential Reclaim
Australia 30% 15% 15%
Austria 27.50% 15% 12.50%
Belgium 27.50% 15% 12.50%
Canada 25% 15% 10%
Finland 30% 15% 15%
France 30% 15% 15%
Germany 26.375% 15% 11.375%
Norway 25% 15% 10%
Sweden 30% 15% 15%
Switzerland 35% 15% 20%
U.S 30% 15% 15%

Not sure if you’re due a DWT refund? Check out our DWT calculator for an instant calculation.

Irish owners of foreign shares may be due significant refunds
12th February 2015

Many Irish investors hold shares in companies listed outside Ireland. While there are a lot of good reasons to invest overseas, one negative aspect is dividend withholding tax which can be significant.

However, thanks to tax treaties, the excess tax on dividends can be reclaimed. While Swiss companies such as Nestle, Novartis, Roche, Swisscom and Syngenta pay dividends subject to 35% and German companies such as Allianz, BASF, EON and Siemens pay dividends subject to 26.375%, Irish investors can apply for a dividend withholding tax refund.

We asked our tax specialist Elaine Marino for an example. She said: “Let’s assume that an investor resident in Ireland received a dividend of €1000 that had 35% DWT applied to it meaning that his net payment was €650. Due to the tax treaty between Ireland and Switzerland, he is eligible to reclaim €200 which boosts his return on investment by 30.76%.”

So if you have overseas shares in your investment portfolio and are wondering if you are due a withholding tax refund, check out our tax refund calculator today.

Download a Brochure

To find out more about the capabilities of the DiviTax system, download the DiviTax brochure by clicking the button below. If you like what you see, or have any questions, sign up for a free demo.

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