Hi I had a chat with a tradestation representative a while back and when asking how TS dealt with witholding tax involving 2 countries with a tax treaty (US and the residential country of the trader) he told me TS doesn't get involve in those issues, ie TS doesn't withold anything. Anyone here has experience with TS ? is that true ? And, if true, how do you deal with the US witholding tax , as it sounds like a hassle to fill the IRS form and pay the due tax at the end of the year ? Thanks for all related info Luis
both of you(TS and you)-have you heard of IRS form W-8? you fill this form and send it to your broker. if they don't have this form and they know that you are not US citizen-they MUST withhold the taxes. i can't believe that people get paid and know nothing about their job at TS.. that's how things work everywhere else in US http://individuals.interactivebrokers.com/en/p.php?f=legalDocs
Actually if they don't have the W8 form or find something wrong with it, they are able/supposed to withold Backup Witholding Tax, which amounts to about 28% of the product of the sale - not profit. Happened to me once and it was quite scary. My question applies in regard of a trader having filled properly a W8 form (IB would withold 30% on dividends if the trading account originates in a country without a special agreement with the US in those cases, like most tax friendly tax juridictions, and whatever is to be witheld FROM THE US SIDE ONLY according to the tax treaty with other countries. they let the trader deal himself with the tax authorities of the other country involved) Yet i'm also a surprised of the info I received from the TS representative.
--Yet i'm also a bit surprised on the info I received from the TS representative.--- don't be..it's just another clueless fuck..do your home work..you can't rely on words of 'someone ' from TS,when IRS jumps on you. i spend an hour with samsung CS chatting online,cause i'm looking to buy a laptop. i give him a model number,every possible info i can find and ask only ONE question-was the screen matte or high gloss? he said-matte,anti glare etc..sure enough it was gloss and i can't see shit on it..fucking clueless losers..
So any non US based trader around here using Tradestation ? Does TS withhold the full 30% on dividends no matter what tax treaty links one's resident country to the US (which sucks ) Don't they withhold anything (which sucks as well and as mentioned by Bob is highly unlikely ) Does TS withhold only the part due to the IRS considering the tax treaty ( which IB does and which I'd expect from TS before joining them ) BTW I might give another try at calling TS and try getting more information on the topic, as the first info sure was dodgy.
do not call. write an email. make sure they included name of the person in respond. better yet-write a letter with same question. at least,if you want to play this game , you will have something and someone to blame on. also can be usefull in court. it's called physical evidence Good luck!