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Tax Withholding Policy

What Traders Need to Know About Tax Deductions on Rewards

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Written by Support
Updated this week

At PIP Traders Funding LLC, we are committed to maintaining transparency and compliance with all applicable tax regulations. As a registered business in Puerto Rico, we are legally obligated to withhold applicable taxes on certain reward distributions made to traders, depending on their place of residence and tax status.


This ensures that we remain compliant with Puerto Rico’s tax laws and helps protect both our firm and our traders by ensuring accurate tax reporting.


📍 For Traders in Puerto Rico

If you are a resident of Puerto Rico, the following tax withholding rates apply to your rewards:

✅ Withholding Rates:

Document Provided

Withholding Rate

Merchant Certificate (for businesses)

10%

Compliance Certificate (for individuals)

10%

No valid tax certificate presented

20%

Tax Withholding Exemption Certificate presented

0% (exempted)

📌 These percentages are applied to the total reward after the profit split is calculated.


For Traders in the United States

If you are a resident of the United States (excluding Puerto Rico):

  • You are required to submit a W-9 Form.

  • PIP Traders Funding LLC will not withhold taxes at the time of your reward.

  • You are responsible for reporting your income when filing your annual taxes.


🌍 For International Traders (Outside the U.S. and Puerto Rico)

If you reside outside the United States and Puerto Rico:

  • No tax is withheld by PIP Traders Funding LLC.

  • You are responsible for complying with tax regulations in your country of residence.


📄 Required Tax Documents

Location

Required Document

Puerto Rico (individual)

W-9PR + Compliance Certificate (or 20%)

Puerto Rico (business)

W-9PR + Merchant Certificate (or 20%)

United States

W-9 Form

Other countries

No document required

📩 Please ensure your tax documents are submitted before requesting your first reward. Missing documentation will delay processing and may result in maximum withholding.


🧾 How the Tax Withholding Is Applied

  • Tax is calculated after the profit split (70/30, 80/20, or 90/10)

  • The withholding amount is deducted from your reward

  • You will receive the net amount after tax withholding


📬 End-of-Year Reporting

At the end of each calendar year, PIP Traders Funding LLC will issue a tax form summarizing:

  • The total amount of rewards paid to you

  • The total tax withheld, if applicable

This document can be used for your personal or business tax filings, and will be sent via the email address associated with your account.


📧 Need Help?

If you have questions about tax documentation or need help submitting your forms, contact our team at [email protected] — we’re here to assist.

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