How much tax is withheld on NRAs?
The general rule is that we must withhold 30% of any payment of U.S. source income. A lower rate of withholding may apply under tax regulations or an income tax treaty. While not all countries have a tax treaty with the United States, there are about 50 countries that have treaties that reduce the rate of withholding on dividends. These treaty rates typically are imposed at 10%, 15%, 20%, or 25% of the gross distribution.
