What is the W-8BEN?

Non-US individuals complete IRS Form W-8BEN when they expect to receive income from US sources. If you open a bank, brokerage, credit card, or other financial account, the withholding agent will generally ask for a complete W-8. If you need a Form W-8 for a foreign corporation, complete the IRS Form W-8BEN-E instead. 

Part I: Identification of Beneficial Owner

Name of Beneficial Owner: Enter the full legal name of the beneficial owner of the income. If you are completing this Form W-8BEN for a disregarded single-member LLC with a non-US owner, use the name of the foreign individual and NOT the information for the LLC.

Country of Citizenship: Provide your country of citizenship. If you are a dual US citizen, do not complete Form W-8BEN. Regardless of the number of additional citizenships, US citizens should complete Form W-9.  

Permanent Residence Address: Include your permanent residential address. Do not use a PO Box.  

Mailing Address (if different from permanent address): If your mailing address differs from the address above, provide the mailing address for the owner.  

US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): Enter your SSN or ITIN. If you do not have either an SSN or ITIN, you can still complete Form W-8BEN. In some cases, however, you must provide an SSN or ITIN. A US ID number is required if you are a partner in a partnership engaged in a US trade or business or if you expect to claim an exemption from withholding taxes under IRC Section 871(f) related to qualified annuity payments.    

Foreign Tax Identification Number (if any): Provide your foreign tax ID number. If you live in a foreign country that does NOT have an income tax and issues no tax ID numbers, you can leave the line item blank. Here is a list of foreign countries that do NOT issue TINs.

Reference Number: The reference number is generally not required. If you complete this Form W-8BEN for a disregarded single-member LLC with a non-US owner, you can enter the LLC name and EIN as the reference number.   

Date of Birth: If providing the W-8BEN to a financial institution as the account holder, you must enter your date of birth. If you need Form W-8BEN for a different purpose, the date of birth is optional.  

Part II: Claim of Treaty Benefits

Treaty benefits often provide double tax relief for residents of treaty countries. 

For example, the United States and Canada have an income tax treaty. If a non-US person invests in US dividend-paying stocks, a nonresident is subject to a 30% withholding tax when US source dividends are paid to their account. Under a US tax treaty, the withholding agent may reduce the 30% withholding rate if the beneficial owner qualifies for treaty benefits. Under the US and Canada tax treaty, Article X of the Treaty provides a 15% withholding rate on dividend payments instead of the 30% rate. 

  1. Country of Residence for Treaty Purposes: Indicate your country of residence for tax treaty purposes. Note that this is not necessarily your country of citizenship.  
  2. Type of Income Benefiting from the Treaty (e.g., Interest, Dividends): Specify the type of income for which you claim treaty benefits. For example, if you claim a reduced dividend withholding tax rate, enter the percentage rate of withholding and specify “Dividend Income” as the type of income.  
  3. Article Number (and Paragraph) of the Treaty: Enter the specific article and paragraph of the tax treaty between your country and the US that provides the exemption.
  4. Limitation on Benefit (LOB) Provisions: On the last line item in Part II, enter the article and paragraph for the Limitation on Benefits provision that makes you a tax resident of the treaty country.  

Part III: Certification & Signature

  1. Signature and Date: The beneficial owner should check the box confirming they can sign for the individual listed on Line 1. The owner should sign, date, and print their name in the appropriate fields.     

Next Steps

Submit the completed W-8BEN form to the withholding agent. Do not file or mail this form with the IRS. Keep a copy for your records. Form W-8BEN is generally valid for three years.

Before completing the form, consulting with a tax professional and reviewing the IRS instructions in more detail is highly recommended. Each taxpayer has a different set of facts and circumstances, and the IRS regularly updates the W-8BEN and the related instructions.