Instructions on How to Access PTP Products are available below in this document.

What you need to know:

Amount of Withholding: 10% of sale or distribution proceeds.  This means 10% of the amount of funds that would settle resulting from any transaction or distribution, not just 10% on any calculated profit.

Example of PTP withholding:

Buy 200 shares @ 50. 
Transaction value = $10,000
Sell 200 shares @ 51. 
Transaction value = $10,200
Profit = $200. 
Withholding = $1020 USD

Assuming no tax reclaim requests, the loss in value to the investor would be $820

Affected Instruments: Please see the list at the end of this article.  The list is maintained on a best efforts basis and there may be some timing issues as information is refreshed.  Listed deliverable securities are in scope of the new regulation. Options and other derivative instruments with a PTP as the underlying security are not subject to withholding. However, if the option or derivative is converted into a PTP interest, a subsequent sale of such PTP security would be subject to withholding.

Special Exemptions: The IRS regulation provides issuers the ability to get an exemption from the PTP withholding requirement.  The exemption is valid for 92 days, and issuers are required to re-certify with the IRS to extend the duration of the exemption. IBKR will try, on a best-efforts basis, to publish which of the affected instruments have an operating exemption, but investors should ensure they are choosing products whose withholding conditions they fully understand.  The issuer document that provides for a withholding exemption is generally referred to as a "Qualified Notice"

What Investors are affected: All investors who are not considered ‘resident’ for U.S. tax purposes, i.e. investors who are not subject to U.S. taxation and tax reporting (and therefore doesn't file a W-9 IRS tax form).

Reporting: Withholding will be reported on the year-end Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. 

How to Access PTP Products as a Non-US Taxpayer:  Please login to Client Portal and select the User menu (head and shoulders icon in the top right corner) followed by Settings. Then under Account Settings find the Trading section and click on the “PTP Trading Opt In/Out” link. The webpage allows you to request the ability to trade PTP securities. Once the request is submitted, it may take up to one hour for the ability to be activated.

Note that clients who no longer desire to trade PTP securities may request to deactivate the PTP trading ability via the same “PTP Trading Opt In/Out” link.

Additional Resources: For those interested in understanding additional information about the new regulation, please see the IRS website for IRC Sec. 1446(f): http://www.irs.gov/individuals/international-taxpayers/partnership-withholding

PTP Instruments

This list identifies PTP securities which may be subject to withholding under the IRS Regulation referenced above. The products are presented in 2 groups: those with a "Qualified Notice” exemption, and those "without Qualified Notice".  The lists are shown on a best-efforts basis for convenience only.  IBKR does not guarantee the accuracy or timeliness of the information, and investors should independently verify that products in which they are invested in, or intend to invest, have the necessary exemptions to avoid punitive withholding outcomes.  Duration of the exemptions should also be monitored by position holders in the instruments.

PTP Securities with known Qualified Notice

 Last updated 22-01-2024

PTP Securities without Qualified Notices

Last updated 22-01-2024

The state of Connecticut imposes a sales and use tax which is applicable to online access to information including all data and access fees.

The tax rate as of 2017 is 1% and is applicable to clients with the state of legal residency of Connecticut or a Connecticut permanent/resident address.

The sales and use tax will be applied to all research and market data subscriptions as well as special connections such as VPN, IB Gateway, Extranet and Dedicated Leased Lines.

The sales and use tax will be passed through to client accounts at the time of the subscription billing. The tax is only applicable if a monthly fee is charged, therefore should an account receive a waiver the sales and use tax will similarly be waived.

How to Modify Your W9/W8

1) To submit this information change request, first login to Account Management

2) Click on the Settings section followed by Account Settings

3) Find the Profile(s) section. Locate the User you wish to update and click on the Info button (the "i" icon) to the left of the User's name

4) Scroll down to the bottom where you will see the words Tax Forms. Next to it will be a link with the current tax form we have for the account. Click on this tax form to open it

5) Review the form. If your US SSN/ITIN is incorrect, click on the UPDATE button at the bottom of the page

6) Make the requisite changes and click the CONTINUE button to submit your request.

7) If supporting documentation is required to approve your information change request, you will receive a message.  Otherwise, your information change request should be approved within 24-48 hours.

The Common Reporting Standard (CRS), referred to as the Standard for Automatic Exchange of Financial Account Information (AEOI), calls on countries to obtain information from their financial institutions and exchange that information with other countries automatically on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. For more information about CRS, please visit the OECD website.

Interactive Brokers entities comply with the requirements of CRS as implemented in the jurisdictions where they are located, and report account information to the applicable government authorities. Clients reported by Interactive Brokers under CRS will receive a CRS Client Report in the Client Portal shortly after the reporting deadlines specified below. The CRS Client Report provides an overview of the information that was reported by Interactive Brokers.

• What information is reported under CRS:
  • Account number
  • Name
  • Address
  • Tax ID Number
  • Tax residency country
  • Date of birth
  • Year-end account balance
  • Gross proceeds (all sales)
  • Interest income
  • Dividend income
  • Other income
• When and where is the information reported:
  • Interactive Brokers Australia Pty. Ltd. reports to the Australian Taxation Office (ATO) by July 31.
  • Interactive Brokers Canada Inc. reports to the Canada Revenue Agency (CRA) by May 1.
  • Interactive Brokers Central Europe Zrt. reports to the National Tax and Customs Administration of Hungary (NAV) by June 30.
  • Interactive Brokers Hong Kong Limited reports to the Inland Revenue Department of Hong Kong SAR (IRD) by May 31.
  • Interactive Brokers India Pvt. Ltd. reports to the Reserve Bank of India/Central Board of Direct Taxes (RBI/CBDT) by May 31.
  • Interactive Brokers Ireland Limited reports to the Office of the Revenue Commissioners of Ireland by June 30.
  • Interactive Brokers Securities Japan Inc. reports to the National Tax Agency of Japan (NTA) by April 30.
  • Interactive Brokers Singapore Pte. Ltd. reports to the Inland Revenue Authority of Singapore (IRAS) by May 31.
  • Interactive Brokers U.K. Limited reports to Her Majesty's Revenue and Customs of the United Kingdom (HMRC) by May 31.
• Additional Notes:
  • Information relating to clients of Introducing Brokers is not reported by Interactive Brokers. Introducing Brokers are responsible for their own reporting under CRS.
  • Accounts held by Interactive Brokers LLC are not reported under CRS as the United States has not signed the CRS.