FF SPC bonds accrue coupon income regularly. This coupon income is recognized as U.S.-source income and is subject to U.S. tax at a rate of 30%.
However, this rate may be reduced to 0% under the Portfolio Interest Exemption provided by U.S. tax law. To apply the zero U.S. income tax rate, you have to fill out Form W-8BEN (for individuals) or Form W-8BEN-E (for legal entities) before the record date of the next coupon payment.
Regarding taxation in the Republic of Kazakhstan, according to the Constitutional Law On the Astana International Financial Center, coupons and capital gains on securities listed on the Astana International Exchange are exempt from taxation in Kazakhstan until January 1, 2066.
Therefore, individuals and legal entities (tax residents and non-residents) are exempt from individual and corporate income tax on coupons received on FF SPC bonds and capital gains received from the sale of these bonds.
How to fill out the form
Freedom Broker clients
You can fill out the form in two ways:
- Via the Freedom Broker mobile app:
Menu → Orders → Personal Data → Form W-8BEN.
Detailed instructions:
Video instruction “How to fill out Form W-8BEN” - Via the tradernet.global trading platform:
Account → Personal Data → Form W-8BEN.
Clients of other brokerages
If you purchased bonds through another brokerage, you have to still submit a Form W-8BEN (for individuals) or Form W-8BEN-E (for legal entities) to Freedom Finance SPC. This will ensure you receive your coupon interest in full, without U.S. income tax withholding.
To fill out the required form, visit our website, register, and follow the instructions:
https://w8ben.freedomholdingcorp.com/
If you have any questions, please contact us: