W8-BEN for corp

Discussion in 'Professional Trading' started by TraDaToR, Feb 22, 2011.

  1. TraDaToR



    I am creating a corporation for my trading here in France and it's the first time I have to send a W8-BEN as a corp.Trading will be done through US brokers mostly on CME group exchanges.

    So first question, just to be sure, the fact that I now have a corp don't change the fact that trading P§L is still exempted from withholding, right? I will still pay 100 % of my taxes in France? I would prefer to pay US corp tax instaed of french but that's another story...

    Second question, what does c) d) e ) of II Means?

    c )The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, if
    applicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).
    d)The beneficial owner is not an individual, is claiming treaty benefits for dividends received from a foreign corporation or interest from a
    U.S. trade or business of a foreign corporation, and meets qualified resident status (see instructions).
    e)The beneficial owner is related to the person obligated to pay the income within the meaning of section 267(b) or 707(b), and will file
    Form 8833 if the amount subject to withholding received during a calendar year exceeds, in the aggregate, $500,000.

    Do I have to check some of those boxes as a prop trading firm operating form France?

    Thanks a lot:)
  2. There are 4 different W8 forms...
    I know that individuals and corporations...
    Fill out the same one = W8-BEN.

    Generally, 15% on taxable dividend payments ONLY is withheld...
    And this amount ends up as a Tax Credit on your tax return.

    Tax treaties are there to provide reporting to the IRS...
    (And the IRS is mostly interested in US citizens)...
    And to prevent double taxation on your end.
  3. TraDaToR


    Thanks DeeDeeTwo,

    As I will only trade futures on my corporate account, I won't get any dividends.It will be the same as on my personal account I guess( P§L 100% taxed in France )

    Anybody has an idea if I have to check c) d) or e) on the document?
  4. TraDaToR


    Sorry for bumping, but can someone explain to me what c) and d) means.
  5. luisHK


    Tradator, AFAIK you need to fill several w8ben forms, one for the corporation but also for the end beneficiaries of this corporation (shareholders) as well as the authorised agent - yourself i guess.

    If a french corporation, you should be claiming the treaty benefits between France and the US - for a lower witholding tax on dividends at least, altough you don't seem to be concerned.

    Can't you ask your broker to prefill the w8ben form for you as they are familiar withe issue ?
  6. TraDaToR


    Thank you Luis,

    I didn't know I had to fill a personal W8-BEN too.

    For the c), d), I have checked with my broker and he seemed clueless too. However, I did a little research and it seems those are checked only in the case of a corporation claiming reduced withholding for dividends or interests. It is not my case as trading P§L are exempt from withholding per se.
  7. soonhwei



    Sorry for posting another question, its related to W8BEN.

    Currently am residing in Singapore with W8BEN US tax exempted status, however if i apply CME individual membership, will this affect my US tax exempted status? Anyone has similar experience? Thanks.
  8. soonhwei


    Hi, do you obtain the CME ECM membership for your prop trading firm?
  9. TraDaToR


    Hi, I sent you a private message.
  10. Daal


    I believe the withholding of dividends is 30%, less if there is a tax treaty between the country and the US
    #10     Mar 16, 2011