What is the fee charged for ADRs, which is deducted when dividends are paid?

The current per ADR fee to be charged for an interim dividend is $0.0125 per ADR and for a final dividend is $0.0125 per ADR. An annual fee for the operation and maintenance of administering the ADRs.

What is an ADR fee on a dividend?

ADR Fees are custody fees, sometimes referred to as Depositary Services Fees, to compensate the depositary banks for inventorying the non-U.S. shares and performing registration, compliance, dividend payment, communication, and record keeping services.

How are ADR fees charged?

ADRs are created and issued by both domestic and international banks. These custodian banks or ‘ADR agents’ will typically charge an ADR ‘pass-through fee‘ to cover administrative or other costs associated with the ongoing management of the particular ADR program. The average fee is one to three cents per share.

How are dividends paid on ADRs?

Investors who purchase the ADRs are paid dividends in US dollars. The foreign bank pays dividends in the native currency, and the dealer/broker distributes the dividends in US dollars after factoring in currency conversion costs and foreign taxes.

Can you deduct ADR fees?

Unfortunately ADR fees are not tax deductible for most holders. As the name implies it is not a tax like the dividend withholding tax. So it is not tax deductible.

How often do ADRs charge fees?

ADR Fees are charged 1 to 4 times per year normally, the frequency might be higher under special circumstances. The charge amount will be split accordingly.

Are ADR fees expensive?

ADR fees may show up on your account statement as “maintenance fees” and they aren’t expensive, perhaps $5 or so per 1,000 ADRs.

What is ADR fee tiger?

ADR fees usually range from 1 to 5 cents per share.