Impact-of-new-US-tax-regulation-jan-2017

Title: Impact of new US tax regulation
Page Content:

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 instsales-au@markets.saxo.

Individual/Joint Accounts:
W-8BEN: http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

Company, Trust and SMSF Accounts:
W-8BEN-E: http://www.irs.gov/pub/irs-pdf/fw8bene.pdf
Instructions: Form W-8BEN-E: http://www.irs.gov/pub/irs-pdf/iw8bene.pdf

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

 

 

Saxo Capital Markets (Australia) Pty Ltd.
Level 25, 2 Park Street
NSW 2000
Sydney
Australia

Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Pty Ltd ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Combined Financial Services Guide & Product Disclosure Statement to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as CFDs and Margin FX products may result in your losses surpassing your initial deposits. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.
Please click here to view our full disclaimer.