ABOUT THE W-8 FORM

Income with US withholding tax from securities of US issuers
For domestic investors, a US withholding tax rate of approximately 30% is due on income or dividends from US securities. According to the double taxation agreement between the Federal Republic of Germany and the United States of America, this withholding tax is reduced to 15% for dividends and to 0% for interest.

The reduction in withholding tax can be applied for by a corresponding US tax form. This form must already be available in the event of a corresponding expense or dividend settlement. Unfortunately, US tax forms submitted retrospectively cannot be considered.

First filing & data collection

When a CapTrader account opens, all non-U.S. individuals and corporations must complete a W-8 IRS Form to confirm the country of their tax residence and clarify whether a reduced withholding tax rate for It is applicable. W-8 forms will not be submitted to the IRS.
In the online account application, the W-8 form is automatically filled in for you, so you don't need to fill in any additional documents here!

WITHHOLDING TAX

The withholding tax is not automatically withheld through CapTrader, which means that almost * all of your capital, including all income and profits, is fully available to you for profitable reinvestment. (* Exception: Direct withholding tax deduction for dividend payouts.)
Only in the following year will you declare your accrued capital income as part of your personal tax return. This is possible because the custody compound is not located in Germany, but with our European partner Interactive Brokers.