The tax withholding rate for international customers is determined by the tax treaty the United States has with your country. The withholding rate generally affects any dividend or interest payment made to the account, and it is immediately deducted upon payment. This deduction is listed as a line item in your history tab, as illustrated below.
Your W-8BEN determines the withholding rate assessed on your account. A W-8BEN is submitted on your behalf when you open a tastyworks account. If you believe that the rate applied is incorrect, or have a special withholding rate (Part II #10 of W-8 BEN), you will need to re-submit a W-8 BEN to our accounts team. Please send your W-8 BEN that specifies your specific tax rate to our accounts team at email@example.com.
For accounts with dividend reinvestment applied (DRIP), the total reinvestment amount will base on the dividend after the withholding. To learn more about DRIP, please click here.
To look up the US tax treaty with your country please visit the IRS website by clicking here.