DeGiro: Apply for a reduced withholding tax rate on US investments

Investing / Brokers
1

Hi Everyone,

I noticed I received a notification from DeGiro do potentilly apply for a reduce withholding.

I guess I did the same when I opened the account 3 years ago, but at that time, I simply clicked without actually pay much of attention :wink:

The passage with the self-declaration says (sorry, I translated from my native language to EN)

I certify that I am the ultimate beneficiary of the income under the double tax treaty between the US and the country in which I am a tax resident.
The income to which this form relates is not effectively connected with the conduct of a trade or business in the U.S., effectively connected but not subject to tax under an applicable tax treaty, or to the shareholder’s share of effectively connected income of the partnership

I do not have business in the US, and of course I’m the only beneficiary of the income. But I was not able to really understand the last passage (in bold). I do believe this is not impacting myself, but since I do not understand the wording within this sentence, I wonder if someone could explain me in a easy way what this is about :slight_smile: :slight_smile:

Many thanks,
Cappuccio

2

Seems like the standard W8-BEN form

As long as you don’t earn income directly taxable in the US you’ll be fine

Here’s the IRS’ instructions page Instructions for Form W-8BEN (10/2021) | Internal Revenue Service

3

Hi xmj, thanks for your feedback.
I have nothing to do in the US (apart from having shares bought via DeGiro) :slight_smile: