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  1. #1
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    Default USA - tax dept reporting ...

    Hi all, I have a few US shares directly with the USA as an overseas customer, no dividends. Do I need to do any reporting to the US govt? I am aware of what I need to do with the NZ IRD.


    Cheers.

  2. #2
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    That all depends on your residency or ties with the US. Who is your broker (or where does it reside?)

    If you are a US citizen, the IRS requires you to file a tax return every year regardless of your residency elsewhere in the world. FACTA bounds most banks around the world to comply with US citizens living abroad ; their bank (or broker) accounts require their SIN so they can forward the tax information to the IRS every year (even joint accounts with a non-US national can not be exempted under FACTA).

    If you're not a US citizen and a non-US resident alien. Then as long as you file the IRS form W8-BEN (held by your US broker) you can be exempt from any reporting requirement to the IRS.

  3. #3
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    Quote Originally Posted by SBQ View Post

    If you're not a US citizen and a non-US resident alien. Then as long as you file the IRS form W8-BEN (held by your US broker) you can be exempt from any reporting requirement to the IRS.
    Thanks for that Yes when I applied I did it in NZ as a NZ resident customer with "Firstrade" via snail mail. I did provide them that W8-BEN form. Never lived in the USA.

  4. #4
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    Quote Originally Posted by rayonline View Post
    Thanks for that Yes when I applied I did it in NZ as a NZ resident customer with "Firstrade" via snail mail. I did provide them that W8-BEN form. Never lived in the USA.
    Rayonline, the W8-BEN has a limited life and at some point you will asked to submit a new one. I can't remember how long the first signing continues to be valid. But your broker should supply you with a new form to update your details when the time comes.

    SNOOPY
    To be free or not to be free. That is the cash-flow question....

  5. #5
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    Quote Originally Posted by Snoopy View Post
    Rayonline, the W8-BEN has a limited life and at some point you will asked to submit a new one. I can't remember how long the first signing continues to be valid. But your broker should supply you with a new form to update your details when the time comes.

    SNOOPY
    Form has to be kept updated every 3 years. It's also interesting to note that the recent "Common Reporting Standard" by OECD nations have enforced the W8-BEN forms to a more strict manner. Before the TAX ID# box wasn't required. Now they require your resident country tax #and your passport ID. Whether the US broker is required to report to IRD or not i'm not sure (my guess is not because to have countless of countries around the world, it's a big hassle ; that most brokerage firms no long accept overseas applicants).

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