US vs. IE based funds if you dont qualify for W8BEN

Taxes
36

Post updated with corrections from the following posts.

Brokers with Qualified Intermediary status:

  • Interactive Brokers
  • Charles Schwab
  • Swissquote

Brokers without Qualified Intermediary status:

  • CornerTrader (?)
  • Degiro (?)

Withholding tax for US-based securities:

  1. Domicile without US treaty, broker without QI: US takes 30%, non reclaimable
  2. Domicile without US treaty, broker with QI: US takes 15%, broker takes 15% and sends it to US
  3. Domicile with US treaty, broker without QI: US takes 30%, reclaim 15% locally and 15% from US
  4. Domicile with US treaty, broker with QI: US takes 15%, reclaim 15% locally
  5. Domicile with US treaty, Swiss broker with QI: US takes 15%, broker takes 15%, reclaim 30% locally
7 Likes