Surok wrote:

- quote -

Instructions are at http://www.irs.gov/pub/irs-pdf/iw8ben.pdf.

One advantage of having an ITIN is that the signed form
remains in effect as long as there is at least one
distribution a year. Without an ITIN, the form expires at
the end of the third calendar year after the year the form
is signed. A W-7 is used to obtain an ITIN.

As long as the person remains outside the US, and the income
does not relate to a trade or business operated in the US
(trading securities on an exchange through a US broker is
not considered to be operating a trade or business) no US
tax is owed. If the person comes to the US, there is a
whole set of different rules that might make the income
taxable. This is all explained in IRS Pub 519, US Tax Guide
for Aliens.

--

Alan
http://taxtopics.net

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What is needed for a foreign resident in order to legally
invest in US? I am looking into this on behalf of foreign
person. Online brokerage (Ameritrade) states that they will
open an account for a person residing outside US and all
that is needed, aside from usual things, is a form W-8BEN
(Certificate of Foreign Status).

1. I could not find instructions for the form however, and
it seems to refer to them constantly.

2. Form says to enter SSN/ITIN or EIN (if required). Where
can i find whether it is required and where would I get
those numbers in this case?

3. Would a person have to pay taxes on any income that is
received here in US? Would those taxes be regular taxes
calculated the way US resident does that?

Thanx!

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