Income payments (dividends and payment in lieu) from U.S. sources into your IB account may have U.S. tax withheld. Generally, a 30% rate is applied to non-U.S. accounts. Exemption from the withholding or a lower rate may apply if your home country has a tax treaty with the U.S. Complete the applicable Form W-8 to find out your status.
U.S. tax treaties with some countries have different benefits. Legal tax residents of the following countries may be eligible for the treaty benefits. Below is a list of the tax treaty countries. Benefits vary by country.
|Barbados||Estonia||Israel||Romania||Trinidad & Tobago|
|China, People's Rep. Of||Greece||Kazakhstan||South Africa||United Kingdom|
|Commonwealth of Ind. States||Hungary||Korea, Rep. of||Spain||Venezuela|
*Country list as of April 2009
Refer to IRS Publication 901 for details on withholding rates for your tax residence country and your eligible benefits.