Assuming this is a transfer from someone else (and not just you moving money from one account of yours to another), then depending on what type of payment this is (interest, dividend, royalty, rent, sale proceeds, inheritance, etc.), and where the payment is being made from, the bank making the payment may be required to withhold foreign income tax from the payment. The foreign country may have a law that taxes the type of payment you are receiving based on "source" -- that is, that the payment is coming from a resident and being paid to a nonresident. Because this can result in double taxation countries work out tax treaties in which they mutually agree to reduce or eliminate source based taxation of each other's residents. But it's hit and miss; depends on the countries, the type of payment, what's subject to tax under the country's laws generally, etc. If the bank is required to withhold foreign taxes from the payment it is making to you, you might need to provide evidence of US tax residence or eligibility for tax treaty benefits, or some other kind of paperwork so that the bank can pay you the gross amount owed to you without imposing the foreign tax withholding. The bank should be able to advise you on whether any tax will be withheld at the source, and whether it needs to receive any paperwork from you.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra