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What is withheld on dividends paid to a foreign shareholder?

Banking, payments & cross-border

US-source dividends to a foreign shareholder are generally subject to withholding at the statutory rate, reduced where a tax treaty applies and a valid W-8 claims it.

The company withholds and remits, then reports on Form 1042-S. The obligation sits with the payer, not the shareholder.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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