What is W-8BEN Form? A few investors have asked me on how to fill up the W-8BEN form. What is this form? The W-8BEN form is a tax form used by foreign individuals to declare their non-U.S. status to the Internal Revenue Service (IRS). This form is important for individuals who are receiving income from U.S. sources but are not U.S. citizens or residents.
Investors who have bought Manulife US REIT like me would have received this form previously. You can check out my previous post on how the W-8BEN form looks like. There is usually some form of instructions when you receive the form. Please note that the W-8BEN form may have been updated and the post that I shared is based on the copy I receive in 2020.
Who Needs to Fill Out a W-8BEN Form?
Foreign individuals who receive income from U.S. sources, such as dividends, interest, rents, or royalties, are required to fill out a W-8BEN form. This form certifies that the individual is a non-U.S. person and is not subject to U.S. taxation on that income.
What Information is Required?
When filling out a W-8BEN form, individuals will need to provide the following information:
- Full name and address
- Country of citizenship
- Foreign tax identification number (if applicable)
- Declaration of non-U.S. status
Why is the W-8BEN Form Important?
The W-8BEN form is important for both the individual filling it out and the U.S. payers of income. For the individual, it helps ensure that they are not subject to U.S. taxation on their income.
For U.S. payers, it helps them comply with IRS reporting requirements for payments made to foreign individuals. IRS stands for Internal Revenue Service.
How to Submit the Form?
Individuals can submit the completed W-8BEN form directly to the U.S. payer of income. The payer will keep the form on file and use it to report the income paid to the IRS.
Conclusion
The W-8BEN form is a crucial document for foreign individuals receiving income from U.S. sources. By accurately completing and submitting this form, individuals can ensure that they are not subject to U.S. taxation on their income.