Do I fill out a W-8BEN form if I want to trade stocks in the US?
Asked 4 years ago
Hi, I want to trade US stocks because they look like they could be rather lucrative. However, I'm a foreigner and live in South Africa. Someone told me that if I wanted to trade US stocks, then I would need to fill in a W-8BEN form, do I? What is a W-8BEN form for?
Andrew Moran
Friday, September 03, 2021
Although South Africa does not possess an income tax treaty with the United States, you will still need to fill out a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting document. This can be achieved with your broker or financial institution.
The W-8 forms is for foreigners who are not a resident of the United States and are claiming a reduced U.S. tax withholding.
W-8 forms are the law that allows you to file a claim for a reduction on the tax withheld from U.S. income. The current rate is 30%, but the W-8BEN cuts it to 15% on dividends or zero on interest.
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