My broker withheld the full 30% on U.S. dividends even though Japan has a treaty. Is that just because the account setup was wrong?
I am in Japan and use a Delaware LLC as a holding vehicle for U.S. dividend stocks. This year the broker withheld the full 30% on dividends, even though I thought the U.S.-Japan treaty might allow a lower rate. There is no active business, only the investment account.
I am trying to understand whether this kind of problem usually comes from the tax profile on file with the broker, or whether the treaty issue is more complicated once a U.S. LLC is involved.
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