What taxes will I have to pay on the Welcome Shares?

Overview:

Information relating to tax obligations is reported as required to the tax authorities within your country of residence as well as other countries if trading products subject to any local withholding requirements. Unless specifically directed by a taxing authority, we do not withhold taxes on proceeds from security sales. We are required by US tax law, for example, to withhold US taxes on dividends paid by US corporations to foreign persons at a rate of 30%. This rate may be lower if the US has entered into a tax treaty with your country. In addition, investment interest income is not subject to US withholding. All withholdings for non-US persons and most entities will be reported on Form 1042-S at the close of each year. For further information refer to IRS publication 901 and/or your tax advisor…

For all clients we provide an Annual Statement and a Dividend Report. Your Annual Statement shows trade detail for your account gain and loss on a First In, First Out (FIFO) matching basis or the specific method of tax accounting selected for your account. Your Dividend Report shows account detail for all dividends, and payments in lieu of dividends, as well as withholding on these amounts…

The amount of foreign tax withheld from dividends is reported on Form 1099-DIV. The IRS does not require reporting of foreign tax withheld on gross proceeds and substitute payments in lieu. Refer to IRS Publication 514…

Yes. For all clients we provide a Dividend Report which shows account detail for all dividends, and payments in lieu of dividends, as well as withholding on these amounts.

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…