What does the message "Contract Subject to 871(m)" mean?

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…

Non-EEA accounts may see this message if a product is subject to trading restrictions for clients who do not reside within the European Economic Area (EEA). Please submit a message to IBKR Client Services…

If you are trying to move your account under an Advisor or Broker and you see this message, then the Advisor or Broker does not have the proper account configuration to submit orders for all of the products you already have trading permissions for…

IRS Section 871(m) is a part of the US Internal Revenue Code that can impact certain financial transactions, potentially leading to order rejections. Here is what you need to know:

1. Purpose of Section 871(m):
   • It aims to harmonize the US tax treatment for non-US persons regarding:…