What is the US withholding rate on German dividends?
The United States withholding rate onsuch dividend to German investors will remain at 15 percent. Provisions of the existing convention permit German resident investors to make portfolio investmentsin the United States through United States Regulated Investment Companies (RICs) and receive anexemption on the income in the Federal Republic.
How is a dividend taxed in the United States?
With reference to paragraph 3 of Article 10 (Dividends) For United States income tax purposes, the United States shareholder shall be treated as if it hadreceived as a dividend a refund of German tax equal to 5.88 percent of the dividend actually paid,determined before the German withholding tax on such dividend.
What is the US Germany tax treaty?
While the US Germany Tax treaty is not the final word on how items of income will be taxed — it does help Taxpayers better understand how either the US Government and/or Germany will tax certain sources of income; what the IRS reporting requirements are — and whether or not the saving clause will further impact the outcome.
When will the US branch tax be imposed on German corporations?
The United States branch tax, prohibited under theexisting convention, will be imposed on United States branches of German corporations for taxableyears beginning on or after January 1, 1991.
CONVENTION BETWEEN THE UNITED STATES OF AMERICA