Last updated 2026-06-27

Beneficial Owner

In withholding tax law, the beneficial owner is the person or entity that ultimately owns the investment income and bears the economic risk — as opposed to a nominee or agent acting on their behalf. To claim treaty benefits, the claimant must be both tax-resident in the treaty country and the true beneficial owner of the dividend income.

Source country tax authorities require reclaim applicants to confirm beneficial ownership to prevent 'treaty shopping' — where investors route income through third countries with favourable treaties. Dividends received via a nominee broker still qualify, provided the underlying investor is the beneficial owner. Funds and trusts may need to provide additional documentation to demonstrate beneficial ownership by qualifying investors.

Source: OECD Commentary on Article 10 of the Model Tax Convention (2017)