WHT can be as high as 35% when investing internationally, which results in a material impact on investment performance. In some instances, WHT recovery can increase dividend yields by up to 50 basis points.
To compile and submit a successful WHT claim, information and documentation need to be sourced from the underlying investor, financial intermediaries, custodians and sub-custodians. In addition to sourcing this information, challenges such as completing onerous claim forms, dealing with language barriers, navigating points of contact at foreign tax offices and collating supporting documentation further complicates the process.
Once claims are successful, there are further hurdles to address, such as dealing with queries from tax offices as well as tracking and accounting for recoveries when repayment dates are uncertain.
These copious hindrances often create a situation where WHT is not pursued and eventually expires. Without a simple solution to recover these taxes, investors will continue to dilute their investment returns unnecessarily.
To help ease the challenges experienced by international investors, WTax has developed a digital platform to simplify the withholding tax reclaim process.
In developing a digital platform, our team has considered the challenges experienced by the various parties involved in the WHT recovery process from financial intermediaries to the end-investor. In providing a comprehensive solution, the following key functionality has been incorporated in WTax’s digital platform:
The digital platform is accessible by various parties involved in the WHT reclaim process and is fully customizable to suit the needs of both intermediaries and end-clients.
In a world where advisors strive to obtain alpha for their clients, WHT reclaims may be the value-add that is the differentiator between competitors. Contact WTax’s Private Wealth Team today to find out more.