If a valid W-8 BEN is filed for the account, the Internal Revenue Service only withholds a small amount of tax on dividends received. The rate varies from country to country, but it does not exceed 30%.

Investors are responsible to report any capital gains or capital losses to your local tax authorities. However, a separate tax return is not required to be filed in the United States. A Form 1042 is mailed to you during tax season.

All taxable events in your account are recorded in the appropriate tax document. These documents are available in the Tax Documents section on both the mobile app and the website. Tax documents are generated and become available for download between January and April of the year following the tax year, depending on the type of form.