What is dividend withholding tax?

What is dividend withholding tax?

Dividend issuance may be subject to US withholding tax, which will be withheld by our third-party broker (DriveWealth).

A dividend withholding tax is a tax that is imposed by the US government on dividends paid to shareholders. This tax is a percentage of the total dividend payment, typically 30%, but may be reduced if your country of residence has an applicable tax treaty with the United States.

You can find the list of countries with applicable tax treaties and corresponding Dividend withholding rateshere.