Taxes in Hapi - Everything you need to know about your tax obligations
Hapi is a US company, when you operate at Hapi you are operating under US laws and regulations. When you trade at Hapi, taxes that will apply to you will depend on your country of residence, your nationality, and it will be your responsibility to understand and comply with.
Hapi does not provide advisory or consulting in legal or tax matters in any way. We recommend you to consult with a local specialist to understand what taxes apply to you.
For dividends, US taxes related to these are withheld and paid to the IRS directly.
Dividends: The U.S. withholds 30% from non-residents. If your country has a tax treaty with the U.S., the W-8BEN form can reduce that withholding (for example, 15% in Chile and 10% in Mexico). The W-8BEN is completed when you open your account and is valid for 3 years. You renew it in Menu → Settings → W-8BEN.
Backup withholding: in certain regulatory cases, for example if your W-8BEN is not current, Apex may withhold 24% of a sale. You will see it as "W8-BEN Tax".
PTPs: when you sell an interest in a Publicly Traded Partnership, 10% of the sale amount is withheld, under section 1446(f) of the U.S. tax code.
Form 1042-S: Apex issues it every year with the taxes that were withheld from you. You can find it in Portfolio → Reports.
Do you have any additional questions? You can contact our support team here. We're here to help!