Is it possible to be exempted from US withholding tax in advance or to have it reduced?

 Please note that the following answer only applies to clients of our Broker offering residing in Germany.
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In the case of US withholding tax, our custodian bank (Baader Bank) can grant a lower tax rate as a qualified intermediary. Baader Bank is able to reduce the withholding tax from 30 % to 15 % if you are subject to tax in Germany.

In accordance with the double taxation agreement between the USA and Germany, the US withholding tax is automatically reduced for non-US persons provided they have German citizenship, German residence and tax liability in Germany.

For foreigners living in Germany, a registration must be completed using the W-8BEN form in order to benefit from the lower tax rate. To do so, send us the completed form by email to service@scalable.capital. Please make sure that you provide complete information when submitting the form.

If you are not taxable in Germany, the US withholding tax is regulated in the country-specific double taxation agreement between the USA and your tax country.

For all other countries, an advance exemption from the respective withholding tax is not possible.