Open an account with a US broker like Interactive Brokers or Schwab, or get paid by a US bank or platform, and you'll almost always be asked to sign Form W-8BEN. It's an IRS form that certifies you are not a US person and, where a tax treaty applies, claims a reduced withholding rate.
The short version: you don't send the W-8BEN to the IRS. You give it to whoever pays you (your broker, bank or platform). Without it, US dividends and similar income can be withheld at 30%. With a valid form, residents of treaty countries can get a lower rate, for example 15% on dividends for UK, Canadian or Australian residents and 10% for mainland China residents.
What the form is
| Details | |
|---|---|
| Full name | Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) |
| Who files | An individual who is a nonresident alien for US tax purposes and the beneficial owner of the income |
| Give it to | The withholding agent or payer that asks for it. Do not send it to the IRS |
| What it does | Proves foreign status, claims treaty rates, avoids backup withholding |
| Valid until | Usually December 31 of the third calendar year after the year you sign |
| Cost | Free |
The IRS instructions say that failing to provide a W-8BEN when asked may lead to withholding at the 30% foreign-person rate, or at the backup withholding rate.
When the W-8BEN is the wrong form
- You are a US person (citizen, green-card holder, or resident under the substantial presence test): use Form W-9. This includes US citizens living abroad.
- The account is in a company's name (your US LLC or a foreign company): the entity uses Form W-8BEN-E. Single-member US LLCs that are disregarded for tax are more complicated. See US LLCs for non-residents and get professional advice.
- The income is effectively connected with a US trade or business: use Form W-8ECI.
What income it affects
The W-8BEN doesn't create tax. It tells the payer what rate to withhold up front. Typical treatment for nonresident individuals, as of November 2026 (confirm with the IRS):
| Income | General rule | With a treaty |
|---|---|---|
| US stock / ETF dividends | 30% withheld | Treaty rate, e.g. 15% (UK, Canada, Australia), 10% (Japan, mainland China), 25% (India) |
| US bank deposit interest | Generally not taxed | Not taxed |
| Qualifying portfolio interest | Generally not taxed | Not taxed |
| Gains from selling stocks | Generally not US-taxed if you were in the US fewer than 183 days that year | Same |
Notes:
- The deposit-interest exemption applies to interest from a US bank, savings and loan, credit union or insurance company that isn't connected with a US business.
- The 183-day capital gains rule is its own test: a nonresident present in the US 183 days or more in a tax year pays a flat 30% (or treaty rate) on US-source capital gains.
- Treaty rates vary by country and type of income. Look up your country in IRS Tax Treaty Table 1 (linked below).
- Some places, including Hong Kong, Taiwan and Singapore, have no income tax treaty with the US, so 30% dividend withholding applies. For Taiwan, the US-Taiwan Expedited Double-Tax Relief Act (H.R.33) passed the House in January 2025. As of November 2026 we found no record of it passing the Senate or becoming law. Even if it passes, it only takes effect once Taiwan grants matching relief to US residents.
Line by line: Part I (identification)
Most brokers collect the W-8BEN online with an electronic signature, but the fields match the paper form.
| Line | What to enter | Common mistakes |
|---|---|---|
| 1 Name | Your name exactly as on your passport | Name doesn't match the account |
| 2 Country of citizenship | Your citizenship | — |
| 3 Permanent residence address | The address where you actually live as a tax resident | P.O. box, mail-forwarding or bank address |
| 4 Mailing address | Only if different from line 3 | — |
| 5 US TIN | Your SSN or ITIN, only if you have one | Making one up to fill the box |
| 6a Foreign TIN | The tax ID issued by your country of residence | Leaving it blank when the payer requires it |
| 6b | Check only if you're not legally required to get a foreign TIN | Checking it when you do have one |
| 7 Reference number | Only if the payer asks | — |
| 8 Date of birth | Format MM-DD-YYYY | Writing DD-MM-YYYY |
Tips:
- Line 3 trips up the most people. The IRS says not to use a financial institution's address, a P.O. box, or an address used only for mail. It's your real home address, not a US virtual mailbox (see Getting a US address).
- Line 6a: your country's tax ID. Some countries use a national ID number (for example, the OECD says mainland China's individual TIN is the resident ID card number). The OECD publishes TIN details for each country.
- You don't need an ITIN. The W-8BEN doesn't require a US tax number, so don't apply for one just for this form (see SSN vs ITIN vs EIN).
Part II: claiming treaty benefits
Fill this in only if your country of residence has an income tax treaty with the US.
- Line 9: the country where you are a resident for treaty purposes, e.g. United Kingdom.
- Line 10: only for treaty articles that require extra conditions beyond line 9 (for example some student or researcher articles). Most people claiming the dividend rate leave line 10 blank.
- No treaty with your country: leave Part II blank.
Part III: signing
- Payers may allow an electronic signature, but the IRS says simply typing your name into the signature line isn't one. Follow the platform's process (usually checking a declaration and confirming).
- By signing you certify that you're the beneficial owner, not a US person, and that the information is correct.
Expiry, renewal and changes
- Expiry: usually through December 31 of the third calendar year after the year you sign. A form signed in November 2026 is valid through December 31, 2029. Brokers usually prompt you to re-sign online. If it lapses, you may face 30% withholding or trading restrictions.
- Change in circumstances: if you move to another country, change tax residence or become a US tax resident, notify the payer within 30 days and submit a new form.
- One per payer: each withholding agent generally needs its own form. A W-8BEN at IBKR doesn't cover Schwab.
FAQ
Do I still need to file a US tax return? For most nonresident individuals whose only US income is dividends and deposit interest, the withholding at source is usually the end of it on the US side. Your broker sends a Form 1042-S early in the year showing what was withheld. US work income, US rental property and similar situations may require a Form 1040-NR.
Can I get over-withheld tax back? If tax was over-withheld because the form was missing or wrong, you can generally claim a refund on Form 1040-NR, but it's slow. It's far easier to get the form right when you open the account.
Is the W-8BEN related to US estate tax? Not directly. The estate-tax risk for non-residents holding more than $60,000 of US assets is a separate issue. See the Interactive Brokers guide.
Also follow your home country's rules. Treaty withholding in the US doesn't settle your tax at home, where foreign dividends may still be taxable and reportable.
Where you'll see it
- Interactive Brokers and Schwab International: an online W-8BEN is part of the application, with a prompt to renew every three years.
- Opening a US bank account in person: the banker usually has you sign one at the branch.
- US platforms that pay you royalties or revenue share may ask for one too. You fill it in the same way.
Sources
- IRS: About Form W-8BEN, https://www.irs.gov/forms-pubs/about-form-w-8-ben
- IRS: Instructions for Form W-8BEN (10/2021), https://www.irs.gov/instructions/iw8ben
- IRS: Tax Treaty Table 1 (Rev. May 2023), https://www.irs.gov/pub/irs-lbi/tax-treaty-table-1.pdf
- IRS: Nonresident aliens (30% rate on FDAP income), https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens
- IRS: Certain types of nontaxable interest income, https://www.irs.gov/individuals/international-taxpayers/nontaxable-types-of-interest-income-for-nonresident-aliens
- IRS: Taxation of capital gains of nonresident alien students, scholars and employees of foreign governments, https://www.irs.gov/individuals/international-taxpayers/the-taxation-of-capital-gains-of-nonresident-alien-students-scholars-and-employees-of-foreign-governments
- OECD: Tax identification numbers (by jurisdiction), https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/
- US Government Publishing Office: H.R.33 (as received in the Senate), https://www.govinfo.gov/app/details/BILLS-119hr33rfs
