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    iffili's Avatar
    iffili Posts: 3, Reputation: 1
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    #1

    Apr 19, 2009, 08:59 PM
    Any Tax treaty with Pakistan providing divided tax relief
    Hello,

    I am a Pakistani citizen who had dividend income and the brokerage withheld 30% of the dividend amount and gave me a 1042S. Does anyone know if there is a tax treaty with Pakistan that reduces the 30% tax or even better exempts Pakistani nationals from dividend taxes.

    If yes, what do I need to file to get the refund.

    Your help will be greatly appreciated.

    Thanks
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
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    #2

    Apr 20, 2009, 10:21 AM

    Yes, there is a treaty. See: http://www.irs.gov/pub/irs-trty/pakistan.pdf

    Unless you have a green card or are resident by substantial presence the tax on these dividends is indeed 30% even under the treaty terms. See: Publication 901 (4/2008), U.S. Tax Treaties

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