Withholding is done by the financial institution.
'Merkans fill out a W-9 form for citizens to provide their SSN or green carders/resident aliens to give their ITIN, then no tax is withheld, unless you have previous naughty dealings with the IRS. The taxpayer will send in any taxes due next filing season.
For non-citizen non-residents, the W8-BEN is used to identify nationality and claim treaty rights under the relevant DTA. Tax is withheld on dividends and interest (15% for Thai filers, 10% for Chinese), but no withholding on capital gains, which are tax-free for this category of filer.
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