Understanding Form W-8BEN

30% > 0%

Reduce Withholding

Claim treaty benefits

3 yrs

Form Validity

Renew before expiry

FDAP

Income Covered

Dividends, interest, royalties

IRS

Required Form

All US brokerages need it

Why W-8BEN Matters for Your Portfolio

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Without W-8BEN

  • 30% automatic withholding on dividends
  • 30% on interest income
  • 30% on royalties
  • No treaty benefits applied

With W-8BEN

  • Reduced rates: 0-15% (varies by country)
  • Treaty benefits claimed automatically
  • Valid for 3 years
  • Required by all US brokers
W-8BEN is for individuals only. Entities must use W-8BEN-E.

Tax Treaty Withholding Rates by Country

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Dividend withholding rates for portfolio investors (less than 10% ownership). These are the rates you claim on Line 10.

Country Dividend Interest Status
🇦🇺 Australia15%10%Active
🇦🇹 Austria15%0%Active
🇧🇪 Belgium15%0%Active
🇧🇷 Brazil15%15%Active
🇨🇦 Canada15%0%Active
🇨🇳 China10%10%Active
🇫🇷 France15%0%Active
🇩🇪 Germany15%0%Active
🇭🇰 Hong Kong30%30%No Treaty
🇮🇳 India25%15%Active
🇮🇱 Israel25%10%Active
🇮🇹 Italy15%10%Active
🇯🇵 Japan10%10%Active
🇰🇷 South Korea15%10%Active
🇲🇽 Mexico10%10%Active
🇳🇱 Netherlands15%0%Active
🇷🇺 Russia10%0%Active*
🇸🇬 Singapore30%30%No Treaty
🇪🇸 Spain15%10%Active
🇨🇭 Switzerland15%0%Active
🇹🇼 Taiwan30%30%No Treaty
🇦🇪 UAE30%30%No Treaty
🇬🇧 United Kingdom15%0%Active
*Russia treaty status may be affected by sanctions. Consult a tax professional.

Part I: Identification of Beneficial Owner

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1

Line 1: Name

Enter legal name exactly as on passport. No nicknames.

2

Line 2: Country of Citizenship

Your citizenship country (not residence). For dual citizens, use the country whose treaty you claim.

3

Line 3: Permanent Residence Address

Physical street address in your home country. No US address, PO Box, or c/o.

4

Line 4: Mailing Address

Only if different from Line 3. Otherwise leave blank.

5

Line 5: US Tax ID (SSN/ITIN)

Leave blank if you don't have one. Most foreign investors don't need a US TIN.

6

Line 6: Foreign Tax ID

Your home country tax ID (e.g., UK NI Number, German Steuer-ID). Required for FATCA.

8

Line 8: Date of Birth

Use US format: MM-DD-YYYY (not DD-MM-YYYY).

Part II: Claim of Tax Treaty Benefits

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9

Line 9: Treaty Country

Check the box and enter your country of tax residence. Only check if your country has a treaty.

10

Line 10: Special Rates

Enter: treaty article (e.g., "Article 10"), withholding rate (e.g., "15%"), and income type ("Dividends").

Example: "Article 10, 15%, Dividends" for UK residents

Part III: Certification

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Sign and date the form. By signing, you certify under penalty of perjury that:

You Certify

  • Information provided is correct
  • You are the beneficial owner of the income
  • You are not a US person
  • Income is not connected with US trade or business
Form expires 3 years from signing. Set a reminder for month 33.

Common Mistakes to Avoid

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Form Rejection Causes

  • Using a US address
  • Wrong date format (DD-MM vs MM-DD)
  • Forgetting to sign
  • Using W-8BEN-E for individuals

Withholding Issues

  • Claiming wrong treaty rate
  • Not renewing before expiry
  • Omitting foreign TIN
  • Inconsistent information

What Income Does W-8BEN Cover?

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Covered (FDAP Income)

  • Dividends from US corporations
  • Corporate bond interest
  • Royalties from US sources
  • Rents (not ECI)
  • Substitute payments (securities lending)

NOT Covered

  • Capital gains from stock sales
  • Most US bank deposit interest
  • Income connected with US business
Capital gains from selling US stocks are generally NOT taxed for non-residents.