IB's US tax forms for non-US customers

Discussion in 'Retail Brokers' started by panik, Apr 2, 2006.

  1. panik


    I recently received the following email from IB:

    >Dear IB Customer:
    >The US Internal Revenue Service requires us to get updated tax
    >forms every few years for non-US residents and citizens. As a
    >result of recent changes in W-8 reporting, your existing
    >information is incomplete under the current requirements. In
    >order to complete or update your tax forms, please visit Account
    >Management/Account Administration/Update W8
    >Please note that if we do not receive updated tax forms by May
    > 15, 2006, we may be required by the IRS to apply additional
    >tax withholding to certain transactions in your account to meet
    >US regulations.

    I am a Dutch citizen (individual) living in the Netherlands,
    trading only Eurex futures and Forex (no stocks so no dividents, and no US products, except the US$:).)
    I had losses in 2004, around breakeven in 2005, and 2006 is
    profitable (so far).

    Anyone knows what's the best way to fill the W-8BEN form at IB?
    (Especially sections 9 to 11.)

    Also, what's the situation with the Dutch tax office?
    I never filled up a tax return form before (so I didn't declare
    the 2004 losses). What do you recommend I should do
    for 2006 if profitable?

    Thanks for your help.
  2. panik


  3. BKuerbs


    What's so difficult about filling this form? I have to do it myself, but I don't remember Section 9 - 11.

    Just tell them you are a non-US individual.

    Taxes are handled differently in each country. Can't you simply ask your tax office? Much cheaper than asking a professional consultant and (mostly) more accurate.

    Of course you should not ask how to hide your money in Liechtenstein.....:D


    Bernd Kuerbs
  4. just21


    I left section 9-11 blank. The machine accepted it.
  5. I'm a Canadian.
    IB Canada seems totally confused about the W8 forms.

    I have different accounts... and I can't get a straight answer about anything.
    I've been so concerned that I have discussed the situation with my Auditor.

    The IRS is not someone you want to f*uck with...
    But IB views all this super, ultra casually.

    The online web form does not even tell you which version of the 3 different W8 forms you are filling out...
    And I have no idea if this online web thingy is a legal replacement for an actual W8 form.

    No one knows... and no one cares...
    Except the guy trying to manage his business in a responsible way.


    :cool: :cool: :cool:
  6. panik


    My sections 9 to 11 are blank, and I think that's why
    IB's system complains...
  7. panik


    Anyone knows whether there is a treaty for the Netherlands
    and what the number is? (Section 10)

    Also, at section 11, do I check it or not?
    (what the hell is a "notional principal contract"?
    I don't understand the help file...)