Virtually all countries apply withholding taxes when local companies seek to distribute dividends to externally based shareholders (whether those shareholders are corporate or not).  The rate at which IB is obligated to withhold for a given payment depends largely upon whether there is a tax treaty in place between the country where the dividend paying country is based and the country of residence of the dividend recipient.  In addition, certain taxing authorities provide their residents with a tax credit for foreign taxes paid at the point of filing in order to minimize the effect of double taxation.

The table below depicts the rates of withholding as applied by IB effective 2009-01-01 along with resident country credit rates.