Do you need W8-BEN for UK listed US companies?

[Benbay001]

Do i need to complete a W8-BEN to purchase Somero Enterprises (SOM) shares?
Its a US company but is singularly listed on AIM.

Thanks

[DE1975]

No, you're fine to buy AIM listed companies without one

[The Leaper]

Presumably, any dividends will be paid from UK to you as a UK tax payer, not from the USA. in which case the dividends will not be subject to USA IRS regime/ income tax possibilities.

R.

[Benbay001]

Thanks both.

It seems its muddy water.
As its a UK listed company that pays shares sourced from the US, 30% withholding tax applies and there is no reduced rate.

I filled out the W-8BEN because its free and opens options.

Thanks for your responses.

[The Leaper]

Benbay001 said:

Thanks both.

It seems its muddy water.
As its a UK listed company that pays shares sourced from the US, 30% withholding tax applies and there is no reduced rate.

I filled out the W-8BEN because its free and opens options.

Thanks for your responses.

Something seems wrong.

I assume that when you say "pay shares" you mean receive regular dividends

US withholding tax is not 30% but 15%.

You say you have filed a W8-BEN so you should be registered as a Non Resident Alien for USA tax purposes and have the rate of 15% paid, so that you receive 85% of the dividends paid into the UK. If the dividends are being taxed at 30%, then the only reasons that I can think of are the the W8-BEN has not been filed in the USA, the form has expired (they need renewing every three years), whoever administers things has screwed up, or I'm missing something.

As far as the UK is concerned, you need to complete SA and in particular the Foreign forms to show the details of the dividends received and the withholding tax paid. You are then liable to pay UK tax on the balance of the dividend tax due after allowing for the withholding tax paid in the USA.

If I were you, I'd check all this out with the administrator.

R.

[Benbay001]

Yes, i meant dividends, not shares.

The standard witholding tax is 30%, but reduced to 15% for uk residents due to tax treaties between the US and UK.

Because Somero is a London listed company, rather than a US listed company, the tax treaty reduction doesnt apply and the dividends still get taxed at 30%.

At least thats how i understood it.

https://www.iweb-sharedealing.co.uk/getting-starte...
See "UK listed shares paying US sourced dividends"

[The Leaper]

OK, understood. I've learnt something today!

R.