If you're a Hatch customer, you don’t need to worry about US tax.
Our US broking partner DriveWealth uses the information you enter when you join Hatch to automatically complete and process a W-8BEN for you. A W-8BEN is a form required by the IRS so you pay the right amount of tax in the US. We charge you a one-off $1.50 USD fee for this service, which is deducted from your first deposit.
Any US tax you’re required to pay on dividends is deducted before the USD lands in your Hatch account and at tax time, all your required annual US tax reports are submitted on your behalf. Every year, 50c USD will be deducted from your available balance in Hatch to cover the costs of filing your US returns.
If you're a US tax resident, get in touch and we'll help you with any other tax requirements.
If I have already paid tax in the US, do I need to pay it in NZ?
Maybe. Find out what you need to do at NZ tax time here - it’s likely to be nothing! However NZ has a tax agreement with the USA, so if you do need to pay tax in NZ, you’ll receive a credit for the amount that you’ve already paid in the US - no double taxing!