May be this is a very basic question but I couldn’t find exact scenario on web which I am looking for.

What I know: If a US person (located or citizen of US) trades equity in market, then the broker is obliged to apply backup withholding in case the person has not filled the valid W8/W9 tax form. The broker will report this on 1099 form.

What I like to know: I am not a US person. My broker has booked my assets (shares) in a custodian which is located in US. I might be requested to fill in W8/W9 tax form. But the question is “if I won’t fill the tax form, does the broker will apply backup withholding of 24% for any sales proceeds?”

Note, when the custodian was located in UK, backup withholding was not applied unless I fill positive US FATCA questionnaire.

  • I'm voting to close this question as off-topic because the person is trying to break the law by not filling out the required forms.
    – Pete B.
    Commented Mar 5, 2018 at 19:01
  • 1
    @Pete B. I would like to know how a non US person not filling US tax form is breaking the law? A non US person is only eligible to fill US FATCA form.
    – Abs
    Commented Mar 6, 2018 at 3:34


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