How to Claim Foreign Dividend Withholding Refund, Step by Step Explained

There is only one condition!!! If you received foreign dividends, you can reclaim part of the tax by applying for a refund.

Retail investor:
"Would it be a loss if I do not claim this?"
There are defined cases and procedures for eligibility, so please follow the steps carefully.

What is withholding tax refund?

Withholding tax refund is the process of reclaiming part of the tax withheld at source when dividends are paid from abroad.

The refundable amount varies depending on the tax treaty between the foreign country and Korea.

Where should you check first?

→ Contact your brokerage customer service to ask whether 'withholding tax refund application' is possible.

→ Check submission guidance from the National Tax Service or the consulate for document recipients.

Brokerages often assist with the application, but you may need to apply directly.

What documents do you need?

Dividend proof documents (transaction statement, dividend payment statement).

Foreign withholding tax receipt or certificate.

Copy of ID and bank account information.

Additional documents may be required by country, so follow your brokerage's guidance.

What are the step-by-step procedures?

→ Step 1: After receiving dividends, confirm the 'withheld tax amount' with your brokerage.

→ Step 2: Collect required documents (transaction statement, receipts, ID, etc.).

→ Step 3: Inform your brokerage of the intention to apply or submit directly online or by mail.

→ Step 4: Wait for review by the local tax authority and confirmation of the refund.

→ Step 5: When the refund is deposited, verify it with your brokerage or bank account.

Processing time and cautions?

Processing times vary significantly by country.

They may request additional documents during the process, so check email and mail frequently.

Confirm current rates and limits with your brokerage or the National Tax Service.

So what should you do first?

→ 1. Check dividends and withheld tax amounts on your transaction statement.

→ 2. Ask your brokerage customer service for refund eligibility and the list of required documents.

→ 3. Gather proof documents, submit the application, and monitor the progress regularly.

Please use this as reference only.

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※ This article is for informational purposes and is not investment advice.