IBKR - question about W-8BEN form

[Manneke]

Hi,

I recently opened an IBKR account and started investing in ETF/Stocks there. I invested in a US stock and it seems they withold 30% tax from the dividend. The dividend hasn't been paid out yet (Pay date is 15.05.2024, ex-date is 30.04.2024), but it seems I haven't filled out the W-8BEN form somehow, otherwise they would only withhold 15%, right?
I checked in my settings and then profile information and there you can click on a link "Combined CRS/IRS Tax form" and it seems to me this is an electronic W-8BEN form or am I mistaken? Here a few screenshots from it:




If this is indeed the W-8EN form, why are they withholding 30% of the dividend? Can anyone please enlighten me?

 

[Baptiste Wicht]

Hi

Normally, you should be good.

But there is one thing I don't understand: You said the dividend has not been paid yet, but already withheld, shouldn't these two events happen together? How do you see the withholding without the dividend?

 

[Manneke]

Hello Baptiste,

thanks for your answer. There is always a delay between the moment the dividend is "taken off" from the stock value and the moment you actually get the dividend in cash on your account. This is normal, I also have this with my stocks on Swissquote. Hence, the "ex date" and the "pay date". Here an overview from IBKR:



9.64 USD is 30% of 32.13 USD. I was thinking maybe they will correct the tax at the moment they pay it out (on the 15.05.2024)? I am really confused.

 

[Baptiste Wicht]

Yes, I am aware of this delay, but did not know you could see the withholding before the payment date, I don't check these reports often.

Just to make sure, are you a Swiss resident?

 

[Manneke]

Hi Baptiste,

my bad, I didn't correctly get your point about the payment. Anyway, yes I am a Swiss resident, this is also what is filled out in this digital form in IBKR called "Combined CRS/IRS Tax form":




Am i overlooking something or should I fill out some other form and send it to American tax authorities? I am really confused about this withholding tax

 

[Manneke]

I created a ticket on IBKR like 20 minutes ago and already got a reply! I am impressed how fast I got a response. See below, could be interesting for other people investing with IBKR: Initial Description: Withholding tax of 30% on dividends despite filled out W-8BEN form Response from IBCS at 08-May-2024 Dear Mr. Manneke, Thank you for contacting IBKR Client Services. At the time of your W-8BEN submission, there were additional tax and account verifications in progress. As this is now completed, the treaty rate withholding amount will be adjusted accordingly. Our team is working on reclaiming your tax withholding. Typically, this process is automatic, and you should see a refund of your overpaid tax withholding within 5-7 business days. You will be able to review the tax reversal in your year-to-date statement. If you do not see a reversal of your tax withholding within the aforementioned time frame, please feel free to re-open this ticket. Kind regards, Matt M IBKR Client Services

 

[Baptiste Wicht]

Thanks for sharing, it's great to know that they were able to swiftly help

 

[Baptiste Wicht]

Am i overlooking something or should I fill out some other form and send it to American tax authorities? I am really confused about this withholding tax

For others: Nothing else to do, the form in this thread is a good example of how to fill it.