Essential Tax Documentation Non-Residents vs. American Residents
What tax form should I complete?
It depends on your tax residence:
If you are a NON-resident of the US: You must complete Form W-8BEN.
If you are a US Citizen or Resident (including expatriates): You must complete Form W-9.
What is Form W-8BEN and why should I complete it?
The W-8BEN (Certificate of Foreign Status) is a mandatory IRS document that certifies your status as a non-US person for tax purposes. By completing it, you avoid backup withholding and can claim tax treaty benefits.
This form is automatically completed during account creation.
How often should I update Form W-8BEN?
W-8BEN forms are valid for the year they are signed and for the following three calendar years. Once an update is required, you must update your personal and financial information through the app. The team will let you know when it is time to update your data.
What is Form W-9 and why should I use it?
Form W-9 is for US persons (citizens, residents) and is used to provide your correct Taxpayer Identification Number (TIN).
This form is automatically completed during account creation.
Tax Withholding and Earnings
What types of income are subject to withholding for NON-residents?
As a foreign investor, you are subject to a 30% tax withholding on dividends, interest, and other US-source income.
Rate Reduction: If your country has a tax treaty with the US, you may qualify for a reduced rate (generally 15% or 10%), provided you have certified the treaty benefits on your Form W-8BEN.
What about taxes on capital gains?
Non-resident aliens are generally not responsible for the tax on capital gains generated from investments in the US.
However, your country of residence may require declaring those gains; consult a tax advisor for more detail.
Annual Report and Documents
What tax documents does Vest provide me for my annual tax declaration?
The tax documents you receive depend on your tax residence:
If you are a US Resident (Citizen or Resident): You will receive different IRS forms (such as Form 1099, depending on the type of income) that report your earnings (dividends, interest, capital gains) for your annual declaration.
If you are a NON-resident of the US: You will receive Form 1042-S, which details US-source income (such as dividends and interest) that was subject to withholding during the year.
You can download the appropriate tax form for you directly from your application, accessing it from your account settings.
Is there a simplified report for my tax declaration in Brazil?
Yes. Brazilian users will have access to an annual report specifically designed to facilitate their local tax declaration in a more agile way. This report will be available directly in the Vest application after the month of February.
Responsibility and Advice
Can my broker give me tax advice?
No. Brokers and financial institutions generally cannot provide tax advice. You should always contact a tax professional (Accountant or Tax Advisor) in your country of residence.