There are several factors that can affect this relationship. For example, it can be related to the specific tenets of a tax treaty between the U.S. and a foreign country the fund is trading in. It could also be related to the holding period of the underlying security or dividends received from U.S. holding or other factors. In 2016, five Harbor funds, the International Fund, the Diversified International All Cap Fund, the International Small Cap Fund, the International Growth Fund, and the Emerging Markets Equity Fund elected to pass through to their respective shareowners, foreign taxes paid by the funds. As a result, the total taxable income reported to you in Box 1a of Form 1099-DIV includes not only the distributions you received, including the reinvestment in additional fund shares, but also the amount of foreign taxes passed through to you. The taxes passed through to you are included in Box 6 of your Form 1099-DIV and can generally be claimed by you on your income tax return as if you had directly paid that amount as tax to a foreign country. This amount can generally be claimed by you as either an itemized deduction or as a foreign tax credit. You may only claim the amount in Box 6 as a deduction or a credit if you held your shares for at least 16 days during the 31-day period beginning 15 days before the ex-dividend date. For Harbor International, Diversified International All Cap, International Small Cap, International Growth, and Emerging Markets Equity Funds the ex-dividend date was December 19, 2016.
You should consult your tax adviser regarding your specific situation.