Generally, tax is withheld at a rate of 30% on payments of US source stock dividends and substitute payments in lieu. The rate of withholding may be reduced if there is a tax treaty between your country of tax residence and the US. We do not withhold sales proceeds. As far as individual tax implications unfortunately we can’t comment on individual tax situations and it would be best to double check with your tax adviser.
All non-U.S. persons and entities are required to complete an IRS Form W-8 to certify their country of tax residence. If you complete Form W-8 you will not receive Form 1099. However, you may receive Form 1042-S which reports interest payments, dividends, and substitute payments in lieu and applicable U.S. tax withholding, thereon, from U.S. securities paid to foreign investors. Refer to IRSPublication 519, US Tax Guide for Aliens, for more information.
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