W8-BEN Form for Charles Schwab

dpk on 17/01/2022 - 16:36

Hi Did anyone filled this form before?
May I know how to fill these below options (it's only for international trading, apart from potential capital gains or dividends there is no other income generating from US, Australian citizen working & paying taxes in Australia).

Selfwealth, Stake, CommSec brokers didn't ask these questions. Charles Schwab W-8BEN form looks different.

Enter the paragraph of article being claimed?
Enter the subparagraph of article being claimed?
Withholding rate claimed?
Type of income expected?

Financial

Comments

  • life is suffering on 17/01/2022 - 16:36

    Charles Schwab ova hea

    • dpk on 17/01/2022 - 17:20

      Thanks westical, I had a look, it mentions chapter 3, chapter 4, paragraph, lines etc, its very confusing on what to fill the form with. We didn't have to fill these details with aussie brokers, possibly they are using generic details for everyone. is there any quick cheatsheet so that it would be helpful for everyone. I am an individual trader who may earn capital gains and/or dividends apart from that does not earn anything in US.

      If i buy a stock for $10000 and sold it for $10000, i do not want to lose $3000 by paying 30% tax.

      • redfox1200 on 17/01/2022 - 22:52

        if you didn't make a capital gain you wouldn't pay 30% tax

        • dpk on 18/01/2022 - 08:08

          If you don't fill the W8-BEN form, you do, broker will cut 30% regardless of you make profit or not, they don't track your average price, SELL security triggers it. This form will make it Capital gains 0%, Dividends 15% I think because you pay the CGT in Australia.

  • lunchbox99 on 17/01/2022 - 17:21
    +1

    Its a US tax form. Just fill it in.

    • dpk on 17/01/2022 - 17:25

      I am asking what do australian traders fill the details with, for the stake, selfwealth, commsec ausiie brokers we don't fill these details and no information available anywhere on what details applicable for australian traders.

      • Hearthstone on 17/01/2022 - 17:30

        That because the business is a US based
        It a PITA form I like to avoid but you don’t have a choice if you signed up to broker that required this form

        Australian based businesses don’t have to

        • dpk on 17/01/2022 - 17:37

          We have to fill W8-BEN form for aussie brokers also, the only difference is we don't have to manually enter the answer for those questions as those details are generic and will not be asked while filling the form through stake or selfwealth online W8-BEN. As CS is US broker, the people who already opened accounts with CS would have filled this form. There is no disadvantage using CS for brokerage, just we need to know what to fill the form initially.

        • dpk on 17/01/2022 - 17:56

          Thanks for this link, financedocbox, they suggest to leave that question 10 Special rates &conditions blank.
          But that question is mandatory in CS W8-BEN online form. I might have to fill the form manually and send them through email.

  • dpk on 17/01/2022 - 17:45

    https://ibb.co/bQxB8qL
    https://ibb.co/N6LMS1K
    Attached the form if it helps

  • rektrading on 17/01/2022 - 18:32

    The IRS (feds) want to keep track of taxes. Don't mess with the IRS. These guys have the power to go after anyone anywhere in the world if they think that they're owed taxes.

    • dpk on 17/01/2022 - 19:25

      It's the form everyone has to fill if trading us stocks. Your comment doesn't makes any sense.

    • T-man on 18/01/2022 - 00:09

      Really!!?? Go and find in china and russia.

      • rektrading on 18/01/2022 - 01:17

        China and Russia may be safe for someone like Snowden but any other country that has extradition treaties with the US are fair game.

        Mcafee was on run from the IRS and the DoJ for years before finally being arrested in Spain.

  • JimmyF on 17/01/2022 - 18:53

    Hi Did anyone filled this form before?

    Nope you are the first one EVER!!.

    But in all seriousness, yes fill it in unless you want to be 'taxed' heavily by the US when you sell.

  • Elppa8 on 17/01/2022 - 19:13

    I left it blank as per the instructions and sent in via email when I had to open an account with ETrade to close an account of a deceased relative.

    Tip: Don’t die with a US account open. It is a nightmare to close and reclaim for relatives. Involving IRS, up to nine months for a transfer certificate, affidavits, Public Notaries, apostilles from DEFAT certifying death certificate and probate as well as a plethora of forms and follow up phone calls in the middle of the night. Forms can be emailed whilst certified documents have to be posted. Pandemic hasn’t helped but now been going on for almost two years.

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