Hello and thank you for using Just Answer,Depending on the type of income, the brokerage account my be liable to withhold US tax even thoughyou are a non US person.Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if an Internal Revenue Code Section provides for a lower rate, or there is a tax treaty between the foreign person's country of residence and the United States (there is not a tax treaty at this time) . The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. A non resident alien will not be treated as engaged in a trade or business by trading US stocks or securities.
For U.S. nonresidents, dividend income received with respect to stock issued by a U.S. corporation is subject to a 30 percent.
When a nonresident sells investment stocks or securities at a gain, that gain is exempt from U.S. tax unless the foreign investor is an individual present in the U.S. at least 183 days during the year. The exemption applies equally to long-term (assets held for more than one year) capital gains and short-term capital gains. Losses from the sale of investment securities cannot be used by a nonresident to offset other types of income that are subject to U.S. tax.
As an exception to this general tax exemption, gains from the disposition of stock in companies with substantial U.S. real property holdings may be subject to U.S. tax
If you keep this account and you are receiving dividends they will be subject to withholding if you sale the stock, as long as you are not in the US for 183 days you will not be taxed on the gain.
The company may be requesting that you complete a W8 form, do this, because the company is required to have this on hand by US tax law.
i was requested to submit a 1099 form, who can do this for me since i do not live in the US and dont know where or how to do this.
Do you mean a 1040NR?
yes it is tax form 1040
You can use an online service (TurboTax, Taxslayer) their programs allow this
Would you like me to give you a link to the US 1040NR
Let me get you the instructions too
You will be better prepared with all
Speak with the broker, sometimes they offer the service
I thnak you in advance for a positive rating
my broker just gave me the last 3 years of trading info
and that is it
If you were not in the US you are not required to pay tax on the sales.
If they paid you dividends, they should have withheld
thank you very much
this is great