Foreign Dividends and How Tax Is Applied Across Borders
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Foreign shares are widely held by private investors, funds, and companies. These shares often pay dividends, which creates tax exposure outside the investor’s home country. Foreign dividends are treated differently from local dividends because tax is usually taken in the country where the company is based. This is where confusion often starts, as investors receive less than the declared dividend and are not always sure why that reduction happened or whether the tax can be recovered.
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