I have come across a foreign dividend tax anomaly which I have been unable to resolve by reading the reciprocal tax treaty operative between the USA and the second country,( the Federal Republic of Germany.).

On both the US IRS and the US Treasury web-sites the text of the reciprocal tax treaty with Germany and the formal protocol is available. I have studied the treaty, the protocol and the technical explanations and I have found that the tax treaty rate of withholding tax for dividends payable to individuals in the treaty countries is stated as 15%.
i.e. a US person as defined by the US IRS, normally resident in the USA, and receiving dividends from a German resident company; or a German person, normally resident in Germany, and receiving dividends from a US resident company is assessed withholding tax on the foreign dividend at the treaty rate, not at the local rate.

My US Brokerage insists that the applicable withholding rate for a US person, resident in the USA, receiving dividends from a German resident company stock is 26.37%. Furthermore my brokerage insists that in order to qualify for the treaty withholding rate I must file with the IRS an application for certification as a US resident and then file a copy of the certification with the Brokerage; I have been unable to find the basis for this claim in the treaty documents. I hold a large percentage of my investments in off-shore companies, in several different nations and I have never come across this anomaly with respect to any other country having a reciprocal tax treaty with the USA. To date I have not yet been able to obtain from my brokerage a citation for the reference documents upon which their claim is based.

Please, can anyone shed light on the basis for the claim made by my Brokerage. Thank you for your attention.

i.e. a US person as defined by the US IRS, normally resident in the USA, and receiving dividends from a German resident company; or a German person, normally resident in Germany, and receiving dividends from a US resident company is assessed withholding tax on the foreign dividend at the treaty rate, not at the local rate.My US Brokerage insists that the applicable withholding rate for a US person, resident in the USA, receiving dividends from a German resident company stock is 26.37%. Furthermore my brokerage insists that in order to qualify for the treaty withholding rate I must file with the IRS an application for certification as a US resident and then file a copy of the certification with the Brokerage;”---->Are you a US person for tax purposes ????Or are you a non-US person??? One of the factors that investors need to consider when investing in foreign stocks is taxes since it reduces the effective rate of return on an investment. Governments of most countries try to recoup millions in taxes from dividends that are paid to foreign investors by companies located in their countries. For example, when a U.S.-based investor invests in France Telecom ADRs, the French government will deduct 25% in taxes on all dividends paid. Hence though TEF currently has a 6.98% dividend yield, the actual yield that this investor receives will be less. However the IRS allows a foreign tax credit (filed with IRS Form #1116) to be taken using which this investor can deduct the taxes paid to the French government. This is done to avoid double taxation of dividends. There is a maximum limit to this tax credit.A few countries do not charge any taxes on dividends paid to foreign investors. So foreign investors receive the entire dividends paid by companies based in those countries. For example, the U.K. charges no taxes on dividends paid by British companies (excluding REITS) to U.S. investors. So an investor in National Gird Plc (NGG) will receive the complete dividends paid at the current dividend yield of 4.68%.Withholding Tax Rate for Dividends for Germany is 26.4%.Germany charges 26.4% tax on dividends only on stocks held in taxable accounts. Due to the tax-treaty between U.S. and Germany, Germany does not deduct any taxes on dividends paid by German firms to U.S. investors who hold the stock in their IRA and other qualified pension accounts.I guess you need to ocntact the IRS for more accurate information in detail.

Thank you for responding to my question.
I am indeed a "US Person" for US tax purposes and a very long term US resident. I hold a large percentage of my investments in "off-shore" companies, all of which were purchased only after researching the existence of a reciprocal tax treaty and its provision of a tax treaty rate, between the USA and the domicile country of the target company. I am familiar with the IRS Foreign Tax Credit program and the reporting of foreign taxes in respect of the tax credit via F1116; but I have never before come across an anomaly such as that described in my original post. I am attempting to investigate the situation further via the IRS and my brokerage, so far without success.

"I am attempting to investigate the situation further via the IRS and my brokerage, so far without success."--->Good for you; UNLESS you are sure of an issue, you absolutely need to contact the IRS for more accurate infromation in detail.You can speak with an International Tax representative at the IRS.