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.