What is non-resident withholding?

Non-resident withholding occurs whenever a US resident invests in a foreign company (such as ADRs listed on a US exchange), or when a foreigner invests in a US company and receives dividends from these securities. As this is considered income received from a foreign entity, the withholding tax will be dictated by the tax agreement between the two countries. Your specific tax situation will depend on the country you reside in and where the company is based.

Alterntaively, non-US residents who hold an account in a brokerage will be charged 30% withholding on the selling of, dividends, and interest securities. To avoid the maximinum withholding, please send us a completed W-8BEN form.

Please contact a tax professional for more personalized guidance on this matter. Webull does not provide tax advice.