To avoid double taxation on profits & dividends received from an ADR stock of a German company - what must I do as an American citizen residing in the U.S.A.?
Looks like tax rate on dividends is now 10% according to the Germany-USA tax treaty:
"The Federal Republic of Germany will reduce its withholding rate on dividends paid to United States portfolio investors, on a non-reciprocal basis, from 15 percent to 10 percent. The United States will treat this reduction as a partial imputation refund, analogous to the imputation credit for corporate tax which German shareholders receive in the Federal Republic with respect to such dividends. This treatment in the United States will assure that the benefit of the German reduction inures to the United States shareholders rather than to the United States Treasury."
Source: https://www.irs.gov/pub/irs-trty/germany.pdf
Still unclear on what I need to file in USA and/or Germany to avoid double taxation on ADR dividends + stock sale profit. Help!
Thank you in advance for your time and advice.