BROWSE

W-8 Form

What is a 'W-8 Form'

A W-8 form is an Internal Revenue Service (IRS) form that provides foreigners with an exemption from specified U.S. information return reporting and backup withholding regulations. There are a variety of W-8 forms.

Explaining 'W-8 Form'

Non-resident aliens and foreign businesses that earn income from one or more U.S. sources utilize the W-8 form. Its purpose is to provide notification that these businesses and individuals will not be taxed in the traditional way. Resident aliens and American citizens use a W-9 form for certification of tax identification numbers. Although the W-8 form is an IRS form, it is submitted only to financial companies that request it and not to the IRS. Failure to submit the form as requested can result in a 30% tax withholding and, potentially, additional penalties.

Variations of the W-8 Form

There are several versions of the W-8 form. The two most common are the W-8BEN and the W-8ECI. The W-8BEN is one of the most commonly used. It certifies foreign status, regarding tax withholding on income. Tax-free income, as specified by this form, includes interest, dividends, rents, royalties and annuities. The form allows foreigners to claim tax treaty benefits. To receive benefits from a tax treaty between the U.S. and the foreigner's home country, the filer must provide certification of residency in the indicated country as well as a tax identification number. It is typical for foreigners to be taxed at a rate of 30% on income that is received from a U.S. source.

Variations of the W-8 Form

There are five variations of the W-8 form. In addition to the W-8ECI and the W-8BEN, there is also the W-8BEN-E form, which is used by beneficiary owners (businesses only) that claim to be tax residents outside of the United States. The W-8IMY form is for foreign individuals who act as intermediaries rather than acting as beneficiary owners. The W-8EXP form is for any international organization, foreign government, foreign tax-exempt organization, foreign central bank of issue, foreign private foundation or government of a U.S. possession that is simply claiming exemption from the Foreign Account Tax Compliance Act (FATCA).


Further Reading


A survey of some new results in financial option pricing theory
www.jstor.org [PDF]
… figure 3. From figure 1 and figure 2, the time delay is 15 and embedded dimension is 4, the data pair { ( ), ( p m U k Y k } is constructed to form the first … International Journal of Economics, Finance and Management Sciences … Journal of International Economics 28, 315– 332.1990 …

A robust closed-form estimator for the GARCH (1, 1) modelA robust closed-form estimator for the GARCH (1, 1) model
www.tandfonline.com [PDF]
… figure 3. From figure 1 and figure 2, the time delay is 15 and embedded dimension is 4, the data pair { ( ), ( p m U k Y k } is constructed to form the first … International Journal of Economics, Finance and Management Sciences … Journal of International Economics 28, 315– 332.1990 …

Corporate financial theory under uncertaintyCorporate financial theory under uncertainty
academic.oup.com [PDF]
… figure 3. From figure 1 and figure 2, the time delay is 15 and embedded dimension is 4, the data pair { ( ), ( p m U k Y k } is constructed to form the first … International Journal of Economics, Finance and Management Sciences … Journal of International Economics 28, 315– 332.1990 …

Too much investment: a problem of asymmetric informationToo much investment: a problem of asymmetric information
academic.oup.com [PDF]
… figure 3. From figure 1 and figure 2, the time delay is 15 and embedded dimension is 4, the data pair { ( ), ( p m U k Y k } is constructed to form the first … International Journal of Economics, Finance and Management Sciences … Journal of International Economics 28, 315– 332.1990 …

Economies of scale and economies of scope in multiproduct financial institutions: Further evidence from credit unionsEconomies of scale and economies of scope in multiproduct financial institutions: Further evidence from credit unions
www.jstor.org [PDF]
… figure 3. From figure 1 and figure 2, the time delay is 15 and embedded dimension is 4, the data pair { ( ), ( p m U k Y k } is constructed to form the first … International Journal of Economics, Finance and Management Sciences … Journal of International Economics 28, 315– 332.1990 …



Q&A About W-8 Form


How can you get a copy of the instructions for Form W-8BEN?

You can find them on the IRS website at https://www.irs.gov/pub/irs-pdf/iw8ben_instr_2017_11_17_a_.pdf .

What is the purpose of a W-8 form?

The W-8 form provides foreigners with an exemption from specified U.S. information return reporting and backup withholding regulations.

What are some common versions of this IRS Form?

The two most common versions are the W-8BEN and the W-8ECI forms.

Who uses the W-8 form?

Nonresident aliens and foreign businesses that earn income from one or more U.S. sources use the W-8 form to provide notification that these businesses and individuals will not be taxed in the traditional way.

How can failure to submit this form as requested result in penalties?

Failure to submit the form as requested can result in a 3 tax withholding, potentially, additional penalties.

What is a W-9 form?

A W-9 form is an IRS form used to provide or confirm a person's name, address, and taxpayer identification number (TIN). The W-9 forms are only required for U.S. citizens or resident aliens, or U.S. entities.

What does certification on this IRS Form do for taxpayers?

Certification on this IRS Form certifies foreign status regarding tax withholding on income (tax free income). Tax free income includes interest, dividends, rents, royalties and annuities according to this IRS Form . It allows foreigners to claim tax treaty benefits too according to this IRS Form . To receive benefits from a tax treaty between United States and foreigner's home country , filer must provide certification of residency in indicated country as well as a tax identification number according to this IRS Form . It is typical for foreigners to be taxed at rate of 3% on income received from United States source according to this IRS Form . There are five variations of Internal Revenue Service Forms including

What does Form W-8BEN do?

Form W-8BEN is used by foreign individuals who receive nonbusiness income in the U.S., whereas Form W-8BEN-E is used by foreign entities who receive this type of income.

Why would someone need to file one of these forms with their tax return?

These forms are needed when taxpayers fail to include their TIN on their tax return filings with the IRS, which could result in penalties being imposed against them if they don't submit one before April 15th each year after failing to do so previously

Where can you find instructions for Form W-8BEN-E?

You can find them on the IRS website at https://www.irs.gov/pub/irs-pdf/iw8bene_instr_20180109a_.pdf .

Who needs to use these forms?

Foreign individuals who receive nonbusiness income in the United States and foreign entities that receive this type of income need to use these forms if they have no TIN or their TIN has expired or changed since their last tax return filing date with the Internal Revenue Service (IRS).