IRS Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting) is used by foreign individuals to confirm their foreign status for U.S. federal tax purposes. The foreign individual can also use the form to claim income tax treaty benefits, if available.

For example, Jane Doe is a citizen and resident of Bermuda. Jane opens a U.S. brokerage account to invest in U.S. stocks and bonds. As part of the onboarding process, Jane must complete and sign a Form W-8BEN and provide it to the custodian. The brokerage company uses the information to determine what withholding tax amounts, if any, must be applied to investment income earned within the account.

Information Required on Form W-8BEN

Part I – Identification of Beneficial Owner

  • Name of the individual and country of citizenship
  • Permanent residence address and mailing address
  • U.S. taxpayer identification number (TIN), if available. Provide the number if the foreign person has a social security number (SSN) or an Individual Taxpayer Identification Number (ITIN). Under some circumstances, the foreign person must obtain a U.S. TIN.
  • A foreign taxpayer ID number
  • Reference number. The reference number is not required but may be helpful information for the withholding agent. For example, a foreign person who opens a U.S. bank account may list the bank account number as the reference number.
  • The individual’s date of birth

Part II – Claim of Treaty Benefits

The individual can complete Part II if the foreign person wants to claim an exemption from withholding tax or a reduced withholding tax rate under a relevant income tax treaty.

For example, John Smith is a citizen and tax resident of the United Kingdom. John opens a U.S. brokerage account and provides the broker a Form W-8BEN with Part II completed. John claims treaty benefits under the U.S.-U.K. Double Tax Treaty, which provides a reduced withholding tax rate on U.S. source dividend income paid to nonresidents.

Part III – Certification

The foreign person must sign the certification, which includes a declaration, under penalty of perjury, that all information is true, correct, and complete.

Video Tutorials Regarding Forms W-8

View some of our videos below on how to complete Form W-8BEN:

Additional Information

Taxpayers can find more information on Form W-8BEN instructions and on the IRS website.