Tax Information and Reporting – Tax Residency

Tax InformationTax Information

Tax Information and Reporting

Tax Residency

Tax Residency


Interactive Brokers (IBKR) is based in the United States and also operates in several other jurisdictions. IBKR is required under various laws to both withhold, remit and report on income to various tax authorities, both in the US and in other countries.

It is very important when operating your account to provide information concerning your primary tax residency. Rules defining this vary from nation to nation, however, since Interactive Brokers is based in the US our applications use the US definition of tax resident.


Determining your Tax Residency

Your tax residency determines where IBKR must report tax information, when tax withholding applies and the rate of withholding.


You are a tax resident of the United States if you are:

  • US citizen (regardless of residence)
  • US Permanent Resident or “"Green Card Holder" (regardless of residence)
  • US legal resident:
    A person who qualifies as a resident for US tax purposes because they have met the substantial presence test as defined by the Internal Revenue Code (Refer to IRS Publication 519, US Tax Guide for Aliens)
  • US formed business entity
  • US formed organization
  • US operations of a foreign entity

You are a tax resident of Canada if you are:

  • Canadian legal resident
  • Canadian formed business entity
  • Canadian formed organization
  • US Citizen residing in Canada
    • You are also a US Tax resident if you are a US Citizen residing in Canada, please follow the instructions for US Citizens (persons). You will receive both US and Canadian tax reporting.

Residents of other Countries

If you are a resident of, or entity formed or operating in, a country other than the US or Canada you are considered to be a foreign person or entity (non-US person). If you are a US Citizen residing in a country other than the US you are a tax resident of the US and of the country you reside in. Please follow the instructions for US Citizens (persons)


Note:

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.

Pursuant to the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019, Interactive Brokers Australia Pty. Ltd. has prepared the following target market determinations relating to certain financial products for which it is deemed to be the issuer. Our Target Market Determinations are located here: Target Market Determinations.

Product Disclosure Statements are also available for each of these products. You should carefully consider these Disclosures in deciding whether to acquire, or to continue to hold, the relevant financial product.