US withholding tax

DubaiFin

Hi

I am UK citizen living in Dubai working for a US company. I have been buying US shares as part of a share-purchase scheme.

I am right in thinking that if I fill in for W-8BEN I will not have to pay US tax on any gain I make if I sell the shares? Does this exemption work when you are not living in a 'treaty' country? (ie I am not currently paying UK tax as meet the UK tax rules for this).

Any help much appreciated as reading the US tax legislation is a bit mind boggling!!

Thanks

oldtoolie

"reading the US tax legislation is a bit mind boggling"

It is for us here in Britain as well. So we don't bother for most part.

You really need specialist advice, not from a forum like this.

Rollinghome

By completing W8-BEN you claim to be a non-US citizen and so exempt from US tax on dividends and interest. Quite what you pay will depend on the taxation rules and tax treaties of wherever you're living.

oldtoolie

How about that. Someone does know what a W8-BEN is! I stand corrected.

Chino

On the basis of a naive reading of the 2001 Income Tax Treaty between the UK and the US, if you are not paying UK income tax then presumably you are not a “resident of a Contracting State” and so could not use a W-8BEN form to take advantage of the taxation treaty between the UK and the US.

But, as oldtoolie suggests, you should seek professional advice.