![]() Have been a customer for years with perhaps 50 trades per year. Very disappointed with Scottrade recently. John from California posted over 7 years ago: ![]() Please let us know if we may be of further assistance." We are required to withhold tax on foreign dividends for all account types, including IRAs and Coverdell Education Savings Accounts (ESAs) in certain situations. However, the possibility for a client to take a foreign tax credit on his or her taxes does exist. In order to pursue reclaiming part of this foreign withholding tax you would need to consult with a licensed tax advisor for additional information regarding this process. We do not currently offer these reclaim services to our clients. Additionally, each country typically requires submission of their unique, individual paperwork and forms. The reclaim process is time-consuming, costly and requires submitting paperwork and proof of residency for each entitled client. By doing this, a small percentage of foreign tax can be reclaimed on behalf of the client. "Some full-service brokerage firms may withhold foreign tax amounts at a lesser or more favorable rate and subsequently file for tax reclaim with the foreign country. I have no problem in this regard with Vanguard. When I inquired about what Scottrade could do to assist in getting the lower tax treaty rate, they respond as follows. Subsequently I realized that Scottrade was showing the maximum withholding had occurred on dividends payable to my account. I purchased TOT (TOTAL, the French integrated oil company). For example, the Tax Treaty with France allows for a reduced withholding rate for US investors (in ADRs, for example) if certain forms are filled out. ![]() For such transactions, Scottrade actively views themselves as a discount broker and does not provide services one might take for granted. ![]() Be careful when using Scottrade for foreign securities. ![]()
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