How can I apply for the lower tax rate for US income?

You can request DEGIRO to apply the lower tax treaty rate on dividend and interest income from the United States when there is a tax treaty in place between the United States and your tax residence country. You can do this by completing the task ‘W-8BEN/ W-8BENE’.

DEGIRO offers this ‘Relief at Source’ service to clients whose country of residency, country of tax residency and bank account country match (should be the same country). Based on the information you provide, DEGIRO will determine whether you are entitled to the lower tax treaty rate.

Due to the regulatory and operational setup required for providing relief at source on US income, DEGIRO will only apply lowered tax treaty rates on income on a selected list of US products from 30-06-2020 onwards. For US products available through our platform, but not on this list, the statutory tax rate will be applied.

A list of the products that will continue to be in the scope can be found here. Note that the list contains over 2,000 US products. In general, these include many of the most frequently traded US stocks. These will not be affected by the change in service and thus the lowered tax treaty rate will still be applied.

Starting 30-06-2020, you will also be able to find the list within the trading platform. You will then be able to see if a specific US product is eligible for relief at source on the details page of that product.