Taxation of income from the financial instruments of US issuers

Investments in the financial instruments of issuers registered in the United States of America (hereinafter — US issuers) entail additional obligations for the investor that are set forth in the US normative acts which regulate taxation of the income from the financial instruments of US issuers.

Starting from 1 January 2016, ABLV Bank, AS (hereinafter — the bank) operates as Qualified Intermediary (hereinafter — QI) of the US Internal Revenue Service.

Operating as QI, pursuant to the requirements of the US normative acts and following the practices applied by agency companies the services of which ABLV Bank, AS (hereinafter — the bank) uses for custody of the financial instruments of US issuers, the bank has to gather and document the data on tax residence of the clients investing or planning to invest funds in the financial instruments of US issuers. To meet the abovementioned requirements, the clients making investments in the financial instruments of US issuers should timely complete the tax forms of the US Internal Revenue Service and submit those to the bank:

  • W-8BEN — for individuals non-US residents
  • W-8BEN-Е — for legal entities non-US residents
  • W-9 — for US residents.

If the said documents are submitted in due time, the bank will be able to take necessary measures for applying reduced tax rate to income from the financial instruments of US issuers, as set forth in the US normative acts. To apply tax benefits, the client should meet all requirements of the US normative acts.

Application of reduced tax rates depends not on the bank’s actions only, but on the conditions of cooperation between the bank and the respective agency company as well. There might be situations in which it will be impossible to apply reduced tax rate directly upon the payment of income on financial instruments of US issuers due to peculiarities of service rendering by the agency company. In addition, although the bank takes relevant and appropriate measures to apply the reduced tax rate, the bank does not guarantee that the reduced tax rate will be applied to all types of income and all clients.

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In addition, we would like to inform that ABLV Bank, AS does not provide advice on taxation matters, and this notice is for information only.