Last updated 2026-06-27

Treaty Rate

The treaty rate is the reduced withholding tax rate that applies to investment income under a Double Taxation Treaty. For dividends, the standard treaty rate is 15% under most OECD-model treaties. The reclaimable amount is the difference between a country's standard withholding rate and the applicable treaty rate.

Example: Switzerland withholds 35% on all dividends. The Switzerland–UK DTT caps dividends at 15%. A UK investor who received CHF 1,000 in Swiss dividends, of which CHF 350 was withheld, can reclaim CHF 200 (the 20 percentage-point excess above 15%). The reclaim is filed with the Swiss Federal Tax Administration (ESTV) via Form 70.