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I have been a non-resident alien for a while with my residence now being in India. Previously, it was the USA. I understand that I am required to submit W-8BEN to my broker. Right now, I don't see any federal tax withholding on my 1099. When the W-8BEN goes to my broker will they stop sending 1099 to the IRS? If yes, what action will they perform instead? Also, I am not sure what I should fill out in the following section of W-8BEN. Can someone help?

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and paragraph of the treaty identified on line 9 above to claim a _____ % rate of withholding on (specify type of income):

. Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding:

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1 Answers1

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After you complete W-8BEN, you will not receive 1099. You will receive 1042-S with Non-resident Alien Withholding. 1042-S can be optionally used in 1040-NR to recover some withholding.

If by "Broker", you mean stock broker (including ETF), then you can claim Article 10 of https://www.irs.gov/pub/irs-trty/india.pdf "tax so charged shall not exceed 25 percent of the gross amount of the dividends paid by a United States person"

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