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STRC and SATA for non-US investors: withholding and tax
General information only, not tax or legal advice. Tax treatment depends on your situation; ask a qualified tax adviser.
By default the US withholds 30% on dividends paid to non-US investors, less with a treaty claim on Form W-8BEN. But a company may choose not to withhold on the part of a distribution that is not paid from earnings and profits, and Strive says SATA distributions are exempt on that basis. What your broker actually withholds can differ.
What the IRS and the issuers say
| Fact | What the official source says | Status | Primary source | Date checked |
|---|---|---|---|---|
| Default US withholding | IRS Publication 515: a withholding agent must withhold 30% from the gross amount paid to a foreign payee unless the payment can be reliably associated with valid documentation (for example, a treaty claim). | Verified | irs.gov | 2026-10-26 |
| Distributions not out of earnings and profits | IRS Publication 515: the corporation or intermediary must withhold on the entire distribution, but may elect not to withhold on the part not paid out of current or accumulated earnings and profits, based on a reasonable estimate. | Verified | irs.gov | 2026-10-26 |
| Documenting a treaty rate | Give Form W-8BEN to your withholding agent or payer if you are a foreign person and the beneficial owner of an amount subject to withholding. | Verified | irs.gov | 2026-10-26 |
| SATA (Strive guidance) | To the extent SATA distributions are not paid out of earnings and profits, Strive says they will be treated as exempt from US dividend withholding tax for non-US investors. | Verified | sec.gov | 2026-10-26 |
| STRC reporting (Strategy) | Strategy says copies of Form 1042-S, as required, will be furnished to certain non-US holders who received the January 2026 STRC distribution. | Verified | Strategy Form 8937 | 2026-10-26 |
| Whether STRC payments to non-US holders are withheld | Not yet verified. Depends on Strategy's and your broker's practice; not confirmed by an official source yet. | Not yet verified | — | 2026-10-26 |
| Canada: how CRA treats US return-of-capital distributions | Not yet verified. | Not yet verified | — | 2026-10-26 |
| UK: how HMRC treats these distributions, and ISA eligibility | Not yet verified. | Not yet verified | — | 2026-10-26 |
Your home country may tax these payments whatever the US does. Check with its tax authority.
General information only, not tax or legal advice. Tax treatment depends on your situation; ask a qualified tax adviser. Dividends are declared at the issuer's discretion, rates can change, and payments are not guaranteed.
Related: STRC tax: return of capital · STRC · SATA