Form W-8BEN and Form W-8BEN-E are IRS forms used by non-U.S. persons to certify their foreign status and claim tax treaty benefits on U.S.-source income, such as interest, dividends, royalties, or service payments.
- Form W-8BEN is used by individuals
- Form W-8BEN-E is used by foreign entities (e.g., foreign-owned LLCs, corporations, partnerships)
These forms are submitted to the U.S. withholding agent or payer (e.g., Stripe, PayPal, banks, or U.S. clients), not to the IRS directly. They help reduce or eliminate withholding tax under applicable U.S. tax treaties.
Key information typically included:
- Name and country of residence
- Foreign tax identification number (TIN or ITIN)
- U.S. tax treaty article (if applicable)
- Signature under penalty of perjury
Why is it important?
Failing to provide the appropriate W-8 form may result in 30% default withholding on U.S.-source payments. Submitting the correct form ensures compliance and can significantly reduce your tax burden.
Who is it for?
- Form W-8BEN: Non-U.S. freelancers, consultants, or investors receiving payments from U.S. sources
- Form W-8BEN-E: Foreign companies, including foreign-owned U.S. LLCs, claiming treaty benefits or certifying their status to a U.S. payer
