What is W8 (W-8BEN)? W8 (W-8BEN) Review

W8 stands for "Form W-8BEN", which is issued by the US Internal Revenue Service and filled out by the account holder to declare that he or she is not a US citizen and to request exemption from relevant US taxes. It is valid for three years after the declaration. Before the three-year period expires, you need to fill out the form again and declare again.

About W8

Generally speaking, U.S. source income received by non-U.S. citizens or residents is subject to U.S. tax. As a securities broker in the U.S., Schwab must withhold U.S. income tax on U.S. source income for non-U.S. clients.

In order to comply with the Internal Revenue Service (“IRS”) tax reporting requirements, non-U.S. persons must submit IRS Form W-8BEN to the IRS and Schwab to verify their status as non-U.S. citizens or residents. Schwab will withhold U.S. taxes from non-U.S. persons based on the country of residence reported on the IRS Form W-8BEN.

If the account does not have a valid IRS Form W-8BEN for each person associated with the account, along with the required supporting documentation, Schwab must withhold 30% of all sales proceeds and other cash proceeds from the reorganization. Schwab must also withhold taxes at the highest rate (30%) from non-U.S. client accounts without a valid IRS Form W-8BEN, which is higher than the rate generally paid to residents of countries that have a tax treaty with the United States. Schwab will report the information contained on the W-8BEN form to the IRS and the account annually on IRS Form 1042-S.

Table Purpose

This form is for non-US residents to use when reporting US income tax deductions to the US Internal Revenue Service. If the country you live in is a reciprocal country for US tax deductions, you may be eligible for tax reduction or exemption.

W8 form filling process

Note: All forms must be filled in English

Line1: Name.

Line 2: Nationality (if you are Chinese, just write CHINA. If you have a Canadian green card but have not become a Canadian citizen, still fill in CHINA, unless you have become a Canadian citizen, then fill in your new nationality).

Line 3: Home address (including street number and house number). You cannot use a rented mailbox from the post office as your address.

Line 4: Mailing address (not necessary if it is the same as your home address).

Line5: US tax ID number (leave blank or fill in N/A if you don’t have one).

Line 6: Other country tax numbers (if in China, leave it blank or fill in N/A; if in Canada, fill in the Canadian SSN number).

Line 7: If you are asked to fill out W-8BEN because you need to open an account with a company, then fill in the account number you opened with the company) If you do not have one, leave it blank.

Line8: Birthday (month-day-year).

Line 9: Fill in your place of residence. If you live in China, fill in CHINA. If you live in Canada, fill in CANADA.

Line10: Leave it blank unless otherwise specified.

Write your handwritten signature and signature date in the dotted area below.

Then fill in your name (printed) below your handwritten signature.

At this point, the W-8BEN form is complete.