Tax: Non-US Persons and Entities: US Withholding Tax on Dividends and Substitute Payments in Lieu

US tax law requires the withholding of tax for non-US persons (non-resident aliens) at a rate of 30% on payments of US source stock dividends, short-term capital gain distributions and substitute payments in lieu.  You may be eligible for a reduced rate of withholding if there is a treaty in effect between your country of tax residence and the US, and IB is able to associate the payment with a valid Form W-8.  Refer to IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for more information.

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.

Feedback

Please provide feedback on this information

Please note that while we read and take into consideration all feedback, we are not able to respond directly to comments or questions submitted through this forum. Should you have an inquiry or require assistance, please contact Customer Service.