The National Directory of Certified Public Accountants

Ask A CPA - Mortgages & Loans

How Are American Depositary Receipt Dividends Paid And Taxed ?

Dividends are paid in U.S. dollars and are generally taxable, similar to dividends paid on U.S. shares. Generally, taxes are withheld by the American Depositary Receipt company's local government. Usually, foreign taxes paid can be used to calculate a credit against U.S. taxes on IRS Form 1116 or Schedule A. Speak to your local CPA or bank about investments in American Depositary Receipts.

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