Anyone knows how much % is the withholding tax for US preferreds?

[blueraincap]

For a non-US resident, how much will IBKR withhold for listed-preferreds payouts (say C PRK)? For common it is 30%.

 

[destriero]

 

[newwurldmn]

https://doi.org/10.1080/00909888309365241

 

[ph1l]

https://www.irs.gov/publications/p515#en_US_2023_publink100015245

If the determination of the source of the income or the amount subject to tax depends on facts that are not known at the time of payment, you must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be subject to withholding is withheld.

 

[blueraincap]

Given the 30% withholding tax, I find only securities paying “portfolio interests” attractive.

 

[blueraincap]

HYG distributions seems to be “portfolio interest” under QII

 

[blueraincap]

https://www.ishares.com/us/literatu...nterest-income-qii-percentages-final-2023.pdf

% of QII tax-exempt payouts
SGOV 100%
HYG 80%
SHY 100%
IEI 100%
LQD 80%
HYMU 100%
MEAR 100%
PFF 25%

 

[traider]

Given the 30% withholding tax, I find only securities paying “portfolio interests” attractive.

Is this fully exempt?