By default, EXANTE applied a tax rate of 15% to all dividends from US-incorporated sources through 2021. Each client has its own applicable tax rate, which may differ from the default 15% depending on the client's country of residence.
If the applicable tax rate is higher than the applied tax rate (15%), such difference will be deducted from the client's account. If the applicable tax rate is lower, we’ll process a chargeback. Here’s how we make these calculations:
- For Ultimate Beneficial Owner (UBO) clients who have submitted W-8 forms: the tax rate is defined by the country of tax residency stated in the submitted W-8 form and the type of US income.
- For UBO clients who have not submitted W-8 forms: 30%
- For financial institutions (working on the behalf of clients): 30%, regardless of tax residency.
To avoid a maximum 30% tax on dividends, the clients have to present their W-8 forms to EXANTE. If the client is from a country that has a tax treaty with the US, they will be paying less than 30%. Therefore, in order to be eligible for a lower tax rate, the client must disclose their country of tax residence.
Keep in mind: No W-8 forms for 2021 will be accepted after 29 March 2022.
As a financial intermediary and according to terms of business, Exante acts as a tax agent for its clients. This implies that Exante is entitled to collect taxes from the income generated by its clients and perform tax payments in the name of its clients to respective tax authorities. XNT and EXT have acquired Qualified Intermediary (QI) status from the IRS (US tax authority), thus granting the company the ability to conduct the given procedure.
By request we may provide a list of all operations that incur additional tax.