BNY Mellon, the global leader in asset management and securities servicing, has announced a streamlined process to expedite recovery of foreign taxes withheld from payments to holders of depositary receipts (DRs) for companies incorporated in the Netherlands, Denmark or Luxembourg.
"Working closely with our strategic partners Euroclear Bank and GlobeTax, we've created a new standard tax reclaim service for DR holders," said Michael Cole-Fontayn, chief executive officer of BNY Mellon's Depositary Receipts business. "It allows holders to easily recoup the appropriate treaty benefits for dividend payments on DRs when BNY Mellon acts as depositary, the shares are held in common depository, and the shares are subject to Dutch, Danish or Luxembourg withholding tax.
"This development levels the playing field for DR holders and helps ensure they receive the same treatment in the taxation arena as other equity holders," Cole-Fontayn added.
The new refund service became effective yesterday, November 3.