Last updated 2026-06-27

Source Country

In international taxation, the source country is the country where the income originates — i.e. where the company paying dividends is incorporated. The source country applies withholding tax at its domestic rate. The investor's home country is called the residence country. Tax treaties allocate taxing rights between the source and residence countries.

Understanding the source country is essential for determining which reclaim form to use and which tax authority to apply to. For example, a Spanish investor holding ASML shares (source country: Netherlands) would file a Dutch WHT reclaim with the Belastingdienst. If the same investor holds Novartis shares (source country: Switzerland), they would file with the Swiss ESTV.