Tax Information and Reporting

Tax Residency

Interactive Brokers is based in the United States and also operates in several other jurisdictions. IB is required under various laws to both withhold, remit and report on income to various tax authorities, both in the U.S. and in other countries.

It is very important when operating your account to provide information concerning your primary tax residency. Rules defining this vary from nation to nation, however, since Interactive Brokers is based in the U.S. our applications use the U.S. definition of tax resident.

Determining your Tax Residency

Your tax residency determines where IB must report tax information and when tax withholding applies the rate of withholding.

You are a tax resident of the United States if you are:

  • US citizen (regardless of residence)
  • US legal resident or "Green Card Holder" (regardless of residence)
  • US Substantial Presence resident:
    A person who qualifies as a resident for US tax purposes because they have met the substantial presence test as defined by the Internal Revenue Code (Refer to IRS Publication 519, US Tax Guide for Aliens)
  • US formed business entity
  • US formed organization
  • US operations of a foreign entity

You are a tax resident of Canada if you are:

  • Canadian legal resident
  • Canadian formed business entity
  • Canadian formed organization
  • Are not a US Citizen residing in Canada

Residents of other Countries

If you are a resident of, or entity formed or operating in, a country other than the US or Canada you are considered to be a foreign person or entity (non-US person).


IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.