Interactive W-8BEN Guide
One of the most confusing parts of form W-8BEN is Part II, so why don't we jump right in to that first. If you recieve payments from a U.S. company, the company may be required to withhold up to 30% for tax purposes. If you live in a country that has a treaty agreement with the United States, you may be eligible for a lower rate, but only if you complete a form W-8BEN and fill in Part II correctly.
Using the drop-down menus, select your country of residence and your income type. If you need help selecting your income type, reference the guide further down the page, or you may even need to talk to the U.S. company that is paying you to ensure you select the correct one.
Once you've selected your country of residence and type of income, Part II is automatically completed for you below. Note that if there is no treaty rate available for the country and type of income selected, the form will remain blank.
Part II Claim of Tax Treaty Benefits (for chapter 3 purposes only) (see instructions)
9 I certify that the beneficial owner is a resident of [[ country ]] within the meaning of the income tax treaty between the United States and that country.
10 Special rates and conditions (if applicable-see instructions): The beneficial owner is claiming the provisions of Article and paragraph [[ article ]] of the treaty identified on line 9 above to claim a [[ rate ]] % rate of withholding on (specify type of income): [[ incomeName ]]
Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding: Optional further explanation of your eligibility may be entered here.
For more information on income types, it may help to read the footnotes to this table provided by the IRS.
It's important to note that you must include your tax ID number in Part I, Box 6 of the form to qualify for a reduced tax rate. You can use the tax ID number issued to you by your country of residence. If you leave this field blank, your tax rate will default to 30% no matter what country you're in.
If you're interested in validating foreign tax ID numbers entered into form W-8BEN or a substitute form, learn more about our service here!