New Taxtec Report Reveals Global Lost Gains On Cross-Border Securities

Over $16 billion in unreclaimed withholding tax is still left on the table.

TaxTec , the world's first fully digital tax reclamation service, has released a study showing how much withholding tax lies unreclaimed annually on foreign dividends and interest payments. The study provides the most up-to-date global estimate of $16.4 billion, with US cross-border investors missing out on over $3.8 billion in rightful returns.

When foreign dividends or bond interest payments are made, the tax regime in question retains a certain level of withholding tax. Where that jurisdiction has a double taxation treaty with the investor's domicile, a proportion of that withholding tax is reclaimable.

The reclamation process is, however, bureaucratic and complex. Many studies have remarked on the complexity of reclaiming withholding tax. The result is that not all reclaims are processed, with investors ending up losing a percentage of their rightful income.

This issue has come under the spotlight as the global volume of dividends paid out rises, and bonds once more deliver a significant coupon. Asset owners such as pension funds have a duty to their beneficiaries to maximize income, fund managers also have a fiduciary duty to optimize returns for investors, and custodians want to deliver the best possible service to clients.

The TaxTec 2024 Reclamation Report is available at

About TaxTec

Founded in 2023,

Website:

LinkedIn:

MENAFN26022025007843016845ID1109250815