The Irish Revenue Commissioners require IBKR to deduct a withholding tax on interest (not dividends) earned in Ireland. This withholding tax is 20% and must be deducted from the interest paid into your account. To avoid this direct tax deduction, you can use the form described on this page. This must be completed once and is valid for five years (as at 21.12.22).
Definition
Residents of the EU (with the exception of Ireland) or persons who are resident in a country with a double taxation agreement (DTA) with Ireland have the option of reducing or reclaiming Irish withholding tax. For this purpose, form 8-3-6 must be completed and signed or confirmed by the competent tax authority.
Please note that the applicable withholding tax rate depends on the relevant double tax treaty between Ireland and your country of residence. Further information can be found on the website of the Irish supervisory authority:
https://www.revenue.ie/en/tax-professionals/tax-agreements/rates/index.aspx
The withholding tax does not apply to company accounts if they are located in member states of the European Union (with the exception of Ireland) or for companies in countries that have a double taxation agreement (DTA) with Ireland.
Forms 8-3-6
You will need the following information to complete Form 8-3-6.
- Customer name (please make sure it matches the name on your IBKR account)
- Address of the customer
- Tax identification number in the country of residence
- The country in which the customer is resident for tax purposes
- The withholding tax rate between the country of tax residence and Ireland (see below)
- Signature
- Date
Confirmation from the tax office
Once you have completed the form, submit it to the local tax authority in your country of residence. The local tax authority must sign and stamp the form.
Transmission in the account management
For your convenience, we have prepared the forms to include items 3 to 5 for all European Economic Area ("EEA") countries. Customers can complete the other items under 1 to 7.
Countries in the European Economic Area (EEA) with 0% withholding tax:
Denmark
Germany
Germany
(German form)
Finland
France
Iceland
Croatia
Luxembourg
Malta
Netherlands
Austria
Sweden
Slovakia
Spain
Czech
Republic of
Hungary
Cyprus
Countries in the European Economic Area (EEA) with more than 0% withholding tax:
Other countries with an Irish double taxation agreement:
For other countries from the EEA, the documents are available on request.
(the countries marked with an asterisk* have the tax rate of 0% in all cases)
If you are based outside the European Economic Area (EEA), please use this form. If the withholding tax rate is 0 %, please use this form.
If your tax domicile is not included in the above list of countries, please contact us at: info@captrader.com
Example: Completed form (Germany)
EXAMPLE OF A COMPLETED FORM (Germany)
Notes:
- Please do not check off the circles displayed under 1. A
- Field: Capacity of signatory: please enter the term "Account holder" here
- Tax reference = Tax ID (and not Tax No.)
Please note that the withholding tax applies to all customers who are Irish Residents (hold their securities account in Ireland), whether they are individuals (including partnerships) or companies. The withholding tax does not apply to clients who are companies in countries that are members of the European Union (other than Ireland) or to companies in countries that have a double taxation treaty (DTA) with Ireland.
For other customers in the EU (excluding Ireland) or if you are not in Ireland but in a country with a Double taxation agreement (DTA) are tax resident with Ireland, you may file Form 8-3-6, which will reduce or zero out your withholding tax. After you have completed the form, please have the local tax office complete and stamp Part 2.
Please note that the withholding tax rate depends on the DTA between Ireland and your country of residence for tax purposes, which you can view on the Irish Revenue website: https://www.revenue.ie/en/tax-professionals/tax-agreements/rates/index.aspx