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  • If you have elected to have tax withheld, MeDirect will deduct withholding tax on:

    Interest income earned on Savings Accounts, Me1 Savings Accounts, Me3 Savings Accounts, Me 6 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts.

    Coupons paid on bonds’ holdings.

    Dividends paid on equities, ETFs and funds’ holdings.

    Capital gains earned from the sale of securities.

    MeDirect will pay your income/trade consideration net of withholding tax due and remit the withholding tax to the Maltese tax authority. Please note that the information above are for guidance purposes only. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • Interest income earned on Investment Cash Accounts, Savings Accounts, Me1 Savings Accounts, Me6 Savings Accounts, ME3 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts is not subject to foreign withholding tax. Income from securities issued by foreign companies may be subject to withholding tax in the country where the security was issued. However, a Maltese investor may benefit from a lower foreign withholding tax rate or be entitled to a refund of foreign withholding tax by virtue of the double taxation agreement between Malta and the country where the issuer of the security is located. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.

  • The W-8BEN Form is issued by the Internal Revenue Service (IRS) with the purpose of allowing non-US persons to benefit from a reduced rate of taxation on dividends and coupons paid by US companies. If you wish to invest in US securities, you will have to provide us with a duly signed W-8BEN form. The W-8BEN form is valid for three calendar years after the year in which it was signed and submitted to IRS. A new form must be submitted when the existing one expires or if there is a change in circumstances making any information on the form incorrect. 

  • The W-8BEN form should be completed in either blue or black ink. If correction fluid (Tip-ex) or correction tape are used the forms will be rejected. As an individual, you should complete only the fields indicated below.

    Part I: Identification of Beneficial Owner

    • Point 1: Enter your full name
    • Point 2: Enter your country of citizenship
    • Point 3: Enter your permanent residential address. Do not enter a PO Box, "Care of" or any other mailing type addresses. Country name should be completed without any abbreviations used.
    • Point 4: Enter your mailing contact address only if it is different from your permanent address. Country name should be completed without any abbreviations used.

    Part II: Claim of Tax Treaty Benefits

    • Point 9: Enter your country of residency for tax purposes.

    Part III: Certification

    • Sign and date the form, keeping in mind that the US date format is mm-dd-yyyy so for example 25th of September 2012 should be written 09-25-2012.
    Please note that the information above are for guidance purposes only and should be read alongside the official IRS instructions that are available on the IRS website. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • You can choose either to have 15% Maltese withholding tax, if any is due, automatically deducted from the gross amount of dividend or interest earned from your investments or not to have Maltese withholding tax automatically deducted at source. We recommend you to consult your tax advisor in order to asses which option is better for you.

  • You can benefit from foreign withholding tax reduction on income paid on US equities, ETFs and bonds. In order to claim the benefit on your behalf, we need you to submit a W-8BEN Form. We do not offer foreign tax refund services. 

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