✍️ How can I apply for the lower tax rate for US income?
Many countries have a bilateral tax treaty with the United States that allows investors to apply for a lower tax rate on dividend and interest income.
In order to successfully apply for this ‘Relief at Source’ service, your country of residency, country of tax residency and bank account country should match (meaning, all should be registered in the same country). Whether you are entitled to the lower tax treaty rate depends on the information you provide and the applicable laws and regulations.
The lowered tax treaty rates on US income are applicable on a selected list of US products, the so called ‘green list’. This list covers almost all US products. There are only a few exceptions. On our platform you’re able to check the product detail page of each specific US product and see if the product is on the green list.
? How to apply lower tax treaty rate for your DEGIRO account.
At DEGIRO, clients fill in a substitute form which includes the relevant mandatory fields contained on the official form. This substitute form is in accordance with the US Internal Revenue Service (IRS) instructions and is fully digital.
You can do this by completing the form ‘W-8BEN/ W-8BENE’, which you can find under ‘Tax information’ in your account settings.
It is a task that you can complete online, inside your Trading Platform, by providing specific information and certifying those declarations.
During the third year from the completion of the 'W-8BEN/ W-8BENE' Form, or in case of changes in your circumstances that makes any information on the form incorrect, we will ask you to renew it. The renewal periodicity is based on official regulations from US Internal Revenue Service (IRS).
?Note:
After the task in your Trading Platform is complete, it is not possible to view the completed form, until the task is reopened (which occurs due to a change in the clients’ circumstances or during the third year, as mentioned above).
You can always check the status of the 'W-8BEN/ W-8BENE' Form in your Trading Platform (in the section “Tax Information”).