Are dividends, and captial gains, from ADR's taxed differently than those from U.S. Stocks?

If they are, where can one find information on how each ADR is taxed? A reference for this would be great.

2 Answers

  • 1 decade ago
    Favorite Answer

    It has been my experience that the Bank of New York or one of their designated banks issues the ADR's , handles exchange rates, and issues the dividend checks drawn on their bank...minus a charge for doing this.

    Most of the checks I received had no tax taken out, however one company's ADR dividend check did have a high rate of tax taken out which I recovered on my next income tax return.

    The bank of New York said to file a tax exemption form {Forgot the number, but the IRS will send you the form if you request it} with them to receive the full dividend minus the service charge.

    Since apparently you live in the U.S. your capital gains or losses should be included in your yearly tax return along with your dividend income.


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  • 1 decade ago

    Consult a CPA or other tax professional.

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