Why payers demand it
US payers must withhold 30% on many payments to foreign persons unless a valid W-8 on file says otherwise. No form, maximum withholding — the W-8 is your only lever.
The treaty section
Citing the right treaty article can cut withholding on royalties, services or dividends, sometimes to zero. Wrong article, wrong result. A TIN (ITIN or foreign) is required for many treaty claims.
Watch-outs
- A non-resident should never sign a W-9 — that certifies US-person status under penalty of perjury
- W-8BENs expire after roughly three calendar years
- A foreign-owned single-member US LLC usually certifies with the owner's W-8BEN, since the LLC is disregarded
Go deeper
Related reading
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