IBKR with Thai updated address

[toums]

This week, I had to update my residential address on IBKR (from Portuguese address to Thai one), as I moved there end of 2024.
After a new due diligence from my IBKR account they just sent me this :

« Ordinarily, a 30% US withholding tax applies to US dividends, interest and other investment income paid to a non-US taxpayer. The withholding rate may be reduced if you are resident in a country that has a tax treaty with the United States. On the most recent tax form you submitted to us, you claimed the benefits of the US - Portugal income tax treaty. However, during a routine review of your account, we noticed you maintain an address in Thailand.

US tax rules prevent us from granting you a reduced rate of withholding under the US - Portugal income tax treaty unless you provide us with:

(i) a current proof of identity document from Portugal (such as a passport or driver’s license) and
(ii) a current proof of address document from Portugal (such as a bank statement) or
(iii) a reasonable explanation why you qualify for the tax treaty benefits »


Unfortunately I cannot provide any Thai TIN (as I moved recently and for now it’s not required as I dont have income from TH or bring into TH). I am not sure how this can be affect my IBKR investments regarding tax / WHT.

Actually :

- 95%+ of my lines on IBKR are WITH ETFs, all of them are listed in UK, so it should be still tax transparent ?
- I have 2 small lines, stock picking with US stocks, 15% WHT on dividends
- I have some remunerated cash (EUR / USD / GBP), but until now interest was paid from IBKR Ireland, so I had 15% WHT on the interest received (DTA Portugal- Ireland).

Someone here with TH address can tell me which WHT IBKR apply to your account?

 

[JustAnotherNomad]

Give them your Thai utility bill or whatever documents you have available to prove you live in Thailand.
Fill out a new W8-BEN where you either claim Thai treaty benefits or say you're not claiming any treaty benefits.

The UK ETFs are likely not affected by this at all (not sure about the UK rules, but I don't think there is WHT).
If you don't claim treaty benefits, there will be 30% WHT on the US dividends, otherwise 15% (Thailand tax treaty).
There should be no WHT on interest if it's paid by IBKR US, I think.

Be aware that your US stocks will fall under US estate tax rules (40% tax if the value exceeds $60k).

 

[Martin Everson]

WHT when living in TH and holding US stocks is 15% for dividends and Interest under tax treaty with US. When living in Portugal WHT was 15% on dividends and 10% on interest.

You need to submit a new W8-BEN with your new TH address to get the new WHT treaty benefits otherwise the default 30% WHT applies i.e no treaty benefits. You are not entitled to the old treaty benefits as your no longer living in Portugal.

 

[JustAnotherNomad]

The US removed the WHT on interest a couple of years ago to attract foreign investment.

 

[providenceventurer]

Can we have a good list on the tax treaties and rates ( descending benefits wise) for different countries so that we can find the optimum countries to relocate with the IBKR.

 

[daniels27]

Can we have a good list on the tax treaties and rates ( descending benefits wise) for different countries so that we can find the optimum countries to relocate with the IBKR.

Yes, for US it is here:
https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes

 

[Martin Everson]

Can we have a good list on the tax treaties and rates ( descending benefits wise) for different countries so that we can find the optimum countries to relocate with the IBKR.

Here is the comprehensive up to date database of them all you can reference. Just enter the paying country and then look at treaty partner and click on rates to see explanation as per DTA.

https://dits.deloitte.com/

 

[Why]

This week, I had to update my residential address on IBKR (from Portuguese address to Thai one), as I moved there end of 2024.
After a new due diligence from my IBKR account they just sent me this :

« Ordinarily, a 30% US withholding tax applies to US dividends, interest and other investment income paid to a non-US taxpayer. The withholding rate may be reduced if you are resident in a country that has a tax treaty with the United States. On the most recent tax form you submitted to us, you claimed the benefits of the US - Portugal income tax treaty. However, during a routine review of your account, we noticed you maintain an address in Thailand.

US tax rules prevent us from granting you a reduced rate of withholding under the US - Portugal income tax treaty unless you provide us with:

(i) a current proof of identity document from Portugal (such as a passport or driver’s license) and
(ii) a current proof of address document from Portugal (such as a bank statement) or
(iii) a reasonable explanation why you qualify for the tax treaty benefits »


Unfortunately I cannot provide any Thai TIN (as I moved recently and for now it’s not required as I dont have income from TH or bring into TH). I am not sure how this can be affect my IBKR investments regarding tax / WHT.

Actually :

- 95%+ of my lines on IBKR are WITH ETFs, all of them are listed in UK, so it should be still tax transparent ?
- I have 2 small lines, stock picking with US stocks, 15% WHT on dividends
- I have some remunerated cash (EUR / USD / GBP), but until now interest was paid from IBKR Ireland, so I had 15% WHT on the interest received (DTA Portugal- Ireland).

Someone here with TH address can tell me which WHT IBKR apply to your account?

15%

 

[Nacho]

This week, I had to update my residential address on IBKR (from Portuguese address to Thai one), as I moved there end of 2024.
After a new due diligence from my IBKR account they just sent me this :

« Ordinarily, a 30% US withholding tax applies to US dividends, interest and other investment income paid to a non-US taxpayer. The withholding rate may be reduced if you are resident in a country that has a tax treaty with the United States. On the most recent tax form you submitted to us, you claimed the benefits of the US - Portugal income tax treaty. However, during a routine review of your account, we noticed you maintain an address in Thailand.

US tax rules prevent us from granting you a reduced rate of withholding under the US - Portugal income tax treaty unless you provide us with:

(i) a current proof of identity document from Portugal (such as a passport or driver’s license) and
(ii) a current proof of address document from Portugal (such as a bank statement) or
(iii) a reasonable explanation why you qualify for the tax treaty benefits »


Unfortunately I cannot provide any Thai TIN (as I moved recently and for now it’s not required as I dont have income from TH or bring into TH). I am not sure how this can be affect my IBKR investments regarding tax / WHT.

Actually :

- 95%+ of my lines on IBKR are WITH ETFs, all of them are listed in UK, so it should be still tax transparent ?
- I have 2 small lines, stock picking with US stocks, 15% WHT on dividends
- I have some remunerated cash (EUR / USD / GBP), but until now interest was paid from IBKR Ireland, so I had 15% WHT on the interest received (DTA Portugal- Ireland).

Someone here with TH address can tell me which WHT IBKR apply to your account?

I have an account with IBKR and live in Thailand but pay no WHT or Estate Tax on my Ireland-domiciled ETFs or my cash deposits. I used my Thai driving licence for proof of residency.

 

[JustAnotherNomad]

I have an account with IBKR and live in Thailand but pay no WHT or Estate Tax on my Ireland-domiciled ETFs or my cash deposits. I used my Thai driving licence for proof of residency.

Guess why the ETFs are domiciled in Ireland... Ireland doesn't have WHT, it doesn't matter where you live. And btw, the funds pay 15% US WHT.
And if you have cash deposits held by US banks/brokers (such as IBKR), then you will be paying US estate tax.

 

[Clank]

Are you located in Thailand right now?

You can do KYC by enabling location services in your phone and verify your address like that.

 

[Mercury]

And if you have cash deposits held by US banks/brokers (such as IBKR), then you will be paying US estate tax.

IBKR branch where the account is held is not necessarily the US branch, it depends on your residence address.
Cash in non US brokerage accounts is seemingly considered non US situs asset.

 

[Mimimel]

When you have updated with a TH residency they have not switched your account on the US branch of IBKR ? I thought Asia was managed by the us branch not the Ireland one.