W8BEN Form
What Form W-8BEN is for, how it cuts the 30% US withholding to a treaty rate, how to fill it in, and a calculator for your savings.
W8BEN withholding calculator
What Form W-8BEN does
Foreign individuals give Form W-8BEN to a US payer or broker to certify they're not US persons and, where a tax treaty applies, to claim a reduced rate. Without it, US-source income such as dividends, interest, rents and royalties paid to foreign persons is generally subject to 30% withholding (IRS Instructions for Form W-8BEN). Many treaties cut the rate on dividends to 15% or less, and on some royalties or interest to 0%.
Filling it in
- Part I: your name, country of citizenship, permanent address, and a foreign tax ID (or US TIN if you have one).
- Part II: your country of residence for the treaty, the article and the rate claimed.
- Give it to the payer or broker, not the IRS. A W-8BEN generally stays valid until the end of the third calendar year after you sign it, unless your circumstances change.
Businesses use Form W-8BEN-E instead. US persons use the W-9.
Common questions
What is Form W-8BEN?
A certificate foreign individuals give US payers to establish foreign status and claim treaty benefits.
What happens if I don't submit a W-8BEN?
US-source income like dividends is generally withheld at 30%.
How long is a W-8BEN valid?
Generally until the end of the third calendar year after signing, unless circumstances change.
Sources
More paycheck and tax calculators: UI Claims · W2 Form · 1099 Estimated Tax Calculator · 1099 Form Guide + 1099 vs W-2 Calculator
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.