Impact of new US tax regulation

We are writing to inform you of IRS Section 871(m), a new piece of legislation from the United States Internal Revenue Services (IRS). IRS Section 871(m) is relevant to Saxo clients that have, or are considering trading, single stock CFDs with an underlying US equity.

The legislation aims to impose tax on dividend-equivalent payments for derivative instruments with a US-based underlying equity and will come into effect on 1 January 2017. Positions entered into on or after this date will be subject to tax on any dividend payments. Listed options with an underlying US equity will also be covered by similar legislation from 1 January 2018.

Starting on 1 January 2017, Saxo Bank Group will process, withhold and pay dividend tax on behalf of our clients that trade CFDs with an underlying US equity.


What IRS Section 871(m) means to you

Please make sure you have all your US-related tax documentation in order with Saxo Capital Markets. If you have previously not provided this information to Saxo Capital Markets, please complete the relevant form (see below) and submit this to

Individual/Joint Accounts:

Company, Trust and SMSF Accounts:
Instructions: Form W-8BEN-E:

Alternatively, you may complete the following substitute form: (click here)

Saxo will inform its direct retail clients and IB end-clients on 23 December 2016. You can view the communication here.