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What are W-8BEN and W9 tax forms?
What are W-8BEN and W9 tax forms?

Depending on your tax residency, a compulsory W-8BEN or W9 form will be completed on your behalf to ensure you pay the right tax in the US.

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Written by Support
Updated over a week ago

With Hatch, you get the benefit of owning your shares directly through your own US brokerage account. This means before you can invest in the US share markets, a compulsory tax form needs to be completed and submitted on your behalf.

For non-US tax residents this is a W-8BEN form, and for US tax residents it’s a W9 form.

Non-US tax residents: W-8BEN tax form

A W-8BEN tax form allows anyone who is not a US tax resident and/or citizen to invest in the US share markets (aka most of you!). It’s also known as a ‘Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding’ (beautiful huh?).

It's automatically created at sign up

Your W-8BEN form is created automatically with the information you provide us when you start investing using Hatch. Our US broker-partner DriveWealth uses the details you submit to complete and process a W-8BEN form on your behalf. You don't need to do anything!

A one-off $1.50 USD fee will be deducted from your first deposit, which covers the cost of this service. Every year, 50c USD will be deducted from your available balance in Hatch to cover the costs of filing your US returns.

Your US tax returns and payments are sorted for you

You won't need to file a tax return in the US; DriveWealth sorts it all for you. And if you receive dividends, any tax you need to pay in the US will be deducted before the money lands in your Hatch account - this will show up in your transaction history.

You won't be double-taxed

We make NZ tax time simple. When tax time kicks off, we'll tell you the amount of tax you've already paid in the US so you can claim a credit if you need to file a tax return in New Zealand. Our tax centre tells you everything you need to know about your US tax obligations as an investor with Hatch.

Requirement to update every 3 years to avoid higher tax

Your information (such as address and phone number) needs to be re-confirmed every three years. It's important to update or confirm your information at the three year mark as the withholding tax rate goes up to 30% (instead of 15%) on any dividends you receive until the time you update your details.

We will send you an email and instructions on how to do this when it's time to update your information with our broker, DriveWealth.

US tax residents: W9 tax form

If you’re a US tax resident, it’s a very similar process. We’ll ask for your US Tax Identification Numbers (TIN) when you get verified with Hatch, and a W9 form will be automatically filed on your behalf.

If you receive dividends, the money will be paid to your Hatch account in full - no tax deducted.

When it comes to tax time, we’ll provide the information you need to file your taxes directly with the IRS. Get in touch with our friendly team if you’re unsure what investing with Hatch means for your tax requirements and we’ll do our best to point you in the right direction.

Note: Your tax obligations will depend on your situation - if you're unsure, we recommend you seek professional tax advice. These obligations may change over time; it’s your responsibility to keep up to date with changes.

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