If you are not a U.S. citizen or entity formed within the U.S. and have an account with us, you are requested to declare your citizenship or country of formation with the US tax authority (IRS). This declaration can be done online by correctly filling out the W-8BEN form. Filling out this form is an easy process that only takes a few minutes. In the short movie below, we show you where to find the W-8BEN in your account management and how to fill it out…

While an account holder who has submitted a Self-Certification of Tax Residencies (Substitute W-8BEN, classifying them self as a non-U.S. person) is not subject to a U.S. capital gains tax or withholding on trading profits (will be subject to the tax rules of their country of origin), they are subject to U.S. withholding taxes on U.S. source income. U.S. source income includes dividends and…

In the event you hold a position over the ex-dividend date, your dividend may be subject to withholding tax.

Depending on which entity of Interactive Brokers your account is opened with, and your country of legal residence, IBKR might act as a withholding agent and apply the applicable treaty rates, or the tax might be applied by our clearing agent prior to receipt. In such a case, holders might be unable to take advantage of any country specific rates which may exist…

Clients need to complete Forms 5000 and 5001 as described in the French Withholding Tax Reclaim Knowledge Base article, then contact Client Services via Message Center…

Dividends paid on U.S. stocks will be subject to withholding taxes for non-residents. A completed W8 form will allow for a reduced tax rate if a treaty exists between the United States and the holder's country of taxation; however a valid W8 only allows for a reduction in the tax rate not an elimination of the tax entirely…

Overview:

Virtually all countries apply withholding taxes when local companies seek to distribute dividends to externally based shareholders (whether those shareholders are corporate or not). The rate at which we are obligated to withhold for a given payment depends largely upon whether there is a tax treaty in place between the US and the country of residence of the dividend recipient…

Interactive Brokers can support clients with tax reclaims for Spanish stock dividends. Contact Client Services via Message Center and provide the details of the dividends for which they are requesting service. A…

Depending on which entity of Interactive Brokers your account is opened with, and your country of legal residence, IBKR might act as a withholding agent and apply the applicable treaty rates, or the tax might be applied by our clearing agent or depository prior to receipt. The clearing agent executes withholding on payments from issuers before it is received by Interactive Brokers. Interactive Brokers then delivers the funds to the respective parties. Withholding is often executed based on the nature of the entity holding the shares…

Long-term capital gain distributions are reported on Form 1099-DIV in Box 2a (total capital gain distributions).

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer…

Short-term capital gain distributions from mutual funds and exchange traded funds (ETFs) are classified as ordinary dividends and reported on your Form 1099-DIV.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer…

A client who has received dividends from Austrian, Belgium, Danish, Norwegian, Swedish, Swiss or on Great Britain Property Income Distribution stocks may require a Dividend Tax Voucher when filing their annual tax forms to verify their tax reclaim. IBKR will provide the Dividend Tax Voucher and the tax voucher can be used as proof that taxes were withheld at the source…

As of February 2021, the dividend withholding tax for Japanese stocks is 15.315% for clients who are not a resident of Japan. It is deducted automatically from the gross dividend amount.

Additional Information…

Substitute payments, such as dividends on securities that you have loaned to others, are reported in Box 8 on Form 1099-MISC.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer…

Our withholding procedure for Regulated Investment Companies (RICs) is that during the year we code RIC distributions as ordinary dividends and then, after the close of each year when we receive the final allocation information from our tax services vendor as part of the industry-standard reclassification process that takes place beginning in late January, we reclassify the RIC distributions according to their final classification and refund any excess withholding taxes at that time…

A client who has received dividends from German stocks may require a German Dividend Tax Voucher when filing their annual tax forms to verify their tax reclaim. IBKR will provide the Dividend Tax Voucher (ESB - Einzelsteuerbescheinigung) at a per dividend cost and the Dividend Tax Voucher can be used as proof that taxes were withheld at the source…