W8-BEN form

[Hyperion]

I am currently in the process of opening an account with Interactive Brokers which involves a request to complete a W8-BEN form.

1. Why does IB require everyone to fill out the form? I understand that the purpose of the form is for claiming a reduced rate of tax withholding on US income under the US-Australia double taxation treaty...

What if you will not be trading US securities at all?


2. Section 6 of the form asks for a SSN or ITIN. Did most of you apply for an ITIN? Is the process long/difficult?

3. I am not a US resident/citizen, but I have an SSN from when I was in the States on a J-1 exchange visa previously... any ideas if this would be valid for section 6 of the form?

Thanks for your help

Hyperion

 

[bounty]

I am also currently in a similar situation to the one you have described. Can you recommend anything which will assist me in completing the form? I share many of your questions.

 

[So_Cynical]

Wow you need a W8-BEN form to open an Aussie IB account!....ive been looking into opening a US based account and have found that a completed W8-BEN form is needed to stop the US tax Dept (IRS) claiming 30% of moneys traded when a position is closed (not profit but traded amount)

Ok so that's weird.

I can open a US based account in USD and 100% own the shares (W8-BEN needed)

or

Open a IB Aussie account in AUD and not actually own the shares and still need a W8-BEN?

 

[builder2818]

you only have to ill out the sections that are relevant to you which is pretty much the basic info at the top, tick 9a and 11 and sign the bottom. In the "capacity in which acting box" after your signature, write INDIVIDUAL.

If there was an issue they would let you know.

 

[So_Cynical]

Ah silly me...the W8-BEN form is needed to buy US shares thru IB i always think of IB as just a strange cheap Aussie sort of broker. so does that mean that when buying US shares thru IB (Aust) that you actually own the shares?