Tax Information and Reporting – Tax Residency

TAX INFORMATION AND REPORTING

Tax Residency

Interactive Brokers (IBKR) is based in the United States and also operates in several other jurisdictions. IBKR is required under various laws to both withhold, remit and report on income to various tax authorities, both in the US and in other countries.

It is very important when operating your account to provide information concerning your primary tax residency. Rules defining this vary from nation to nation, however, since Interactive Brokers is based in the US our applications use the US definition of tax resident.

Determining your Tax Residency

Your tax residency determines where IBKR must report tax information, when tax withholding applies and the rate of withholding.

You are a tax resident of the United States if you are:

US citizen (regardless of residence)
US Permanent Resident or “"Green Card Holder" (regardless of residence)
US legal resident:
A person who qualifies as a resident for US tax purposes because they have met the substantial presence test as defined by the Internal Revenue Code (Refer to IRS Publication 519, US Tax Guide for Aliens)
US formed business entity
US formed organization
US operations of a foreign entity

You are a tax resident of Canada if you are:

Canadian legal resident
Canadian formed business entity
Canadian formed organization
US Citizen residing in Canada
- You are also a US Tax resident if you are a US Citizen residing in Canada, please follow the instructions for US Citizens (persons). You will receive both US and Canadian tax reporting.

Residents of other Countries

If you are a resident of, or entity formed or operating in, a country other than the US or Canada you are considered to be a foreign person or entity (non-US person). If you are a US Citizen residing in a country other than the US you are a tax resident of the US and of the country you reside in. Please follow the instructions for US Citizens (persons)

Note:

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.