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    Question

    W-8BEN tax process for Non resident aliens?

    Hello everybody, I am citizen of India living in india .But, I opened a Trading account with US brokerage for trading stocks and derivatives in US markets. I also signed a W-8BEN form with the brokerage. I am not clear how this tax process works.I am clear that tax will be 30% for the Interest earning income.But, I did not have clear picture of how tax process for the profits i make from trading stocks or derivatives in US markets. 1.Let's say, I made a profit of 1000$ in trading stock.Does all that money (1000$) will be deposited in my trading account and available for withdrawl? or 2.They tax some % of money in that 1000$ and deposit the rest of money in my trading account which can i withdraw at anytime? or 3.How it works? Can anyone please explain to me in simple and easy way without confusing ? Thank you.
    a few seconds ago 1 Answer

    Best Answer

    By filing out a W-8BEN and certifying you qualify tax treaty benefits, you would receive full payment, instead having tax withholding applied to your earnings. Without a W-8BEN, you would certainly have 30% taxed in the US, so for everyone $100 you get, you'd only receive $70. You still have to report 100% of your income generated in your own country, however.
    a few seconds ago

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