Hi, I am just wondering IB Canada is an american company or a canadian? if it is Canadian, why Canadians have to submit W-8 US tax forms for Tax-Withholding purposes? I understand, as long as we are trading in Canada with a canadian firm, we have nothing to do with USA, UK, Germany, Japan, etc. Any Comments? Take Care Everybody, Abe
HUMmmmm, This is not that simple! Let me call my Help guys out there, dealing with dealer is not simple anymore. It seems to me nowadays, they are working for IRS too. Help wanted please= Simple Idea
IB Canada is NOT an American company. It is a Canadian Investment Dealer (= broker-dealer) registered in Quebec. Securities laws vary a little from province to province... So there must be specific regulatory reasons IB chose Quebec... After years of planning a Canadian subsidiary. Personally... I love dealing with the people in Montreal... Very polite, cultured, civilized, and they don't lie to me... As opposed to New Yorkers... boorish, insulting, and pathological liars. In terms of the W8... Any foreigner person trading US securities must fill one out... So that taxes can be ** kept track of **... and sometimes withheld. If foreigners did not have to register via the W8... Then American firms and traders could completely evade the IRS... Simpply by opening a trading account in a foreign country. The only withholding I endure is a flat 15% on all dividend payments... For which I get a dollar for dollar ** tax credit ** from Revenue Canada. So assuming a Canadian entity pays taxes... The end result is that one pays Canadian taxes ONLY.