Tax

Form W-8BEN

Form W-8BEN is an IRS form on which a non-US individual certifies their foreign status to a US payer, and claims any reduced withholding rate available under a tax treaty. The entity equivalent is Form W-8BEN-E. Payers retain the form rather than filing it.

In plain terms: The form that tells a US payer you are foreign, and claims a lower withholding rate.

Why it matters

Without it, a US payer must generally withhold at 30% on FDAP income. With it, and where a treaty applies, the rate can be substantially lower. It is also the document you collect from your own non-US contractors instead of a W-9.

Related terms

• Form W-9
• Withholding tax
• Tax treaty
• FDAP income

Source: IRS — About Form W-8BEN. This is a definition, not tax or legal advice — verify against the primary source before acting.