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Lesson 2 of 6
The W-8BEN form for individuals is the “driver” or determining document for all non-US persons. It gives the US holder the necessary information to determine your tax status for US taxes.
• The form contains the obvious information name, permanent and mailing addresses, country of citizenship. The need for all of these is fairly obvious and is what is required in almost every country for an account to be opened for documentation for a revenue stream.
• There are a couple of more unusual things required on the form:
o Date of birth
o Foreign tax identifying number or Social number.
• In 2010 the US Congress enacted the Foreign Account Tax Compliance Act commonly referred to as FATCA.
o The primary purpose was to “capture” income of US persons earned overseas and from assets and accounts held overseas to collect the tax due to the US government.
o A secondary offshoot of FATCA was information sharing with other countries. In order to capture earnings in other countries the US needed to share information about income of non-US persons here.
• FATCA requires that the US share information with most other countries and they with the US concerning accounts held by their residents.
• This information sharing is what prompted the addition of DOB and the local tax (or social) number to the W-8BEN.
• The final piece of information on the W-8BEN is tax treaty eligibility.
• The US has tax treaties with approximately 70 countries.
• Your country of primary residence (tax residence) determines tax treaty eligibility.
• If you reside in a country with a tax treaty with the US then you are eligible for the benefits – i.e. lower US withholding rates.
• Your permanent address must match your treaty country on form W-8BEN.
• Your new country of residence may have lower withholding rates than your previous residency country. Information sharing – if you do not update your information will continue to go to the country of your old address and not the new – the old residency country might then look for tax payments.
• W-8BENs expire.
• They are good until December 31 of the third year after they are signed. Renew them before they expire as if they lapse, US withholding will be applied to all income.
• If this information is not provided then additional income, such as proceeds from the sale of investments is subject to withholding.
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The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
The information in this material is provided for informational purposes only and does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.
Hi! I wanna know if the W8-Form is still valid, and in that case where I can find it. Also I need to know the process to send this form to IBKR.
Thanks in advance!
Hello, thank you for asking. Please use this FAQ for instructions to update your W-8 Form: https://www.ibkrguides.com/clientportal/updatetaxform.htm. We hope this helps!
I have just opened an account and there is no option for updating or completing a W8-BEN
I am based in China and have already supplied my TIN number. Does that mean I don’t need to complete a W8-BEN?
Hello, thank you for reaching out. Yes, you are required to complete a W-8BEN. As a non-US taxpayer, the IRS Form W-8 is used to certify your status as a non-U.S taxpayer. It is also used to claim reduced tax withholding on dividends and other income paid with respect to U.S. securities. Without proper documentation, brokers may be required to impose exceptional withholding tax on transactions occurring in the account and/or report the account as non-compliant to tax authorities. Please view this FAQ for instructions to update your W-BEN form:
https://www.interactivebrokers.com/faq?id=32666329
We hope this answers your question!
How to sign the W8 form digitally. To me seems the name is enough
Thank you for reaching out. Please review this FAQ for instructions to update your W-8BEN: https://www.interactivebrokers.com/faq?id=32666329
If the above does not help, please contact Client Services for further assistance: https://spr.ly/IBKR_ClientServicesCampus
Hi, Could you please tell me how I get my IRA withdrawl without the 30% withholding tax? The US/Italy treaty Article 18 should apply to 0% and I was told IBKR does not apply the tax treaty to IRA’s. I have filled out the W-8BEN. Thanks
Hi Brenda, thank you for your question. Please review this FAQ on the topic: https://www.interactivebrokers.com/faq?id=52477332
You can also create a web ticket for Client Services to receive more information: https://spr.ly/IBKR_TicketCampus
Hi, I renewed my expired W-8Ben on 6th Jan 2025. Will I still get taxed if there’s no income occurring during that period of lapse? Also what are the consequences for the income generated after 6th Jan 2025 until 31 Dec 2025 (or should it be counted until 31 Dec 2027?) Thank you very much.
Hello, thank you for reaching out. The Form W-8 remains in effect for the period beginning on the date it is signed and ending on the last day of the third succeeding calendar year. IBKR will notify clients in advance when a Form W-8 is about to expire and will present them with the online Tax Form upon login to Client Portal. Please review this FAQ for more information: https://www.interactivebrokers.com/faq?id=27276615
Hola, estoy completando el formulario y en la ultima no me deja continuar donde se coloca beneficiario indica que no corresponde estoy colocando mis datos y nada no me deja continuar
Gracias por comunicarse con nosotros. Revise estas preguntas frecuentes para obtener instrucciones sobre cómo actualizar su W-8BEN: https://www.interactivebrokers.com/faq?id=32666329
Si lo anterior no le ayuda, comuníquese con el Servicio de atención al cliente para obtener más ayuda: https://spr.ly/IBKR_ClientServicesCampus
For a EU citizen living in the EU (non US citizen, non US resident), filling out the W-8BEN is a requirement, or just an option to claim benefits?
Hello, thank you for reaching out. IRS Form W-8 is used to certify your status as a non-U.S. taxpayer. It is also used to claim reduced tax withholding on dividends and other income paid with respect to U.S. securities. Without proper documentation, brokers may be required to impose exceptional withholding tax on transactions occurring in the account and/or report the account as non-compliant to tax authorities. Please view this FAQ for more information: https://www.interactivebrokers.com/faq?id=37140700
We hope this helps!
Hola el formulario w-8 ¿es gratuito o tiene costo?
Hola Jacob, debes completar un formulario W-8 como cliente de IBKR. El formulario W-8 del IRS se utiliza para certificar tu condición de contribuyente no estadounidense. También se utiliza para reclamar una reducción de la retención de impuestos sobre dividendos y otros ingresos pagados con respecto a valores estadounidenses. Sin la documentación adecuada, es posible que los corredores deban imponer una retención de impuestos excepcional sobre las transacciones que se realicen en la cuenta o informar a las autoridades fiscales sobre el incumplimiento de la cuenta. Hay un depósito mínimo requerido de 2000 USD (o equivalente) para las cuentas de margen. No hay un depósito mínimo requerido para abrir una cuenta de efectivo en Interactive Brokers para la mayoría de las entidades. Consulta estas preguntas frecuentes para obtener más información sobre qué entidades requieren un depósito mínimo diferente al que se indica: https://www.ibkr.com/faq?id=32659392
Hola, gracias por contactarnos. Puede ver el formulario de impuestos W-8 aquí: https://www.interactivebrokers.com/en/support/tax-nonus-initial.php
Para ver el W-8 en su cuenta:
https://www.interactivebrokers.com/faq?id=32666329
¡Esperamos que esta información le resulte útil!
I have Canadian citizenship and am a longterm resident in Spain. What form do I need to fill out for reduced Withholding tax? Also, what is the Withholding rate on dividends and capital gains?
Hello, thank you for reaching out. IRS Form W-8 is used to certify your status as a non-U.S. taxpayer. It is also used to claim reduced tax withholding on dividends and other income paid with respect to U.S. securities. Without proper documentation, brokers may be required to impose exceptional withholding tax on transactions occurring in the account and/or report the account as non-compliant to tax authorities.
For instructions to fill out the W-8 form, please view: https://www.interactivebrokers.com/faq?id=116230294
Hello. If you move contries, and there is a period where you no longer pay taxes in your previous one, but you don’t yet have tax residency and Tax ID in the new country. – Regarding W8BEN. How do I comply during the transition months until the new tax residence is formally established? – What is the timeframe for completing this process, since there are usually delays in issuing the Tax ID? – Can it be considered a failure to keep the W8BEN up to date, therefore withholding 30% of the proceeds? Especially in relation to capital gains from trading stocks.
Hello Fran, thank you for asking. If you relocate to a different country, you will be able to retain your account as long as you are not moving to a country that IBKR is prohibited from transacting business in due to government sanctions.
However, even if relocating to a permissible country, you may be required to initiate a new application and request a manual transfer of eligible assets once your new application has been approved. Whether this step will be required depends upon the country you were residing in and the one that you are moving to as IBKR maintains multiple entities each of which has been formed to carry client accounts based upon local regulatory requirements and IBKR policies. You would need to contact your local Client Service Center to determine if your particular situation requires opening a new account.https://spr.ly/IBKR_ClientServicesCampus
Please consult a tax professional who specializes in your region regarding specific questions.
I am trying to update the W-8BEN-E form (FATCA Active NFFE -> Passive NFFE). I can enter the information without any problems, but the save button after signing does not work. There is no confirmation (OK or ERROR) and the changed information is not saved to the database. The entire application “freezes” so that the only way to continue is to restart the application.
Hello, thank you for reaching out and we apologize for the delayed response. If you continue to experience glitches with the web application, we encourage you to open a web ticket for troubleshooting. https://spr.ly/IBKR_TicketCampus
Hi, I am a NON US resident. I filled out the w8ben, but it doesn’t show me anywhere if it is valid and for how long.
Hi, I’ve filled w8ben form as soon as I opened my account but was taxed with 30% instead of 15% for my country. Is it not automatic procedure and I need to write to support for correct taxation? Thanks
Hello Val, thank you for asking. Depending on which entity of Interactive Brokers your account is opened with, and your country of legal residence, IBKR might act as a withholding agent and apply the applicable treaty rates, or the tax might be applied by our clearing agent or depository prior to receipt. The clearing agent executes withholding on payments from issuers before it is received by Interactive Brokers. Interactive Brokers then delivers the funds to the respective parties. Withholding is often executed based on the nature of the entity holding the shares.
In this case, Interactive Brokers holds all positions registered in its name. This means that Interactive Brokers provides no final beneficiary information to third parties unless required by regulation or by law. As a result, clearing agents or depositories will often treat the owner of the shares as Interactive Brokers. There may be some recourse for you if the withholding is higher than the treaty between your country of legal residence and the taxing authority.
Interactive Brokers can provide clients with Tax Vouchers for German and Swiss dividends with details of withholding taxes deducted upon request to IBKR Client Services. A fee applies per each request. Please consult with your tax advisor for support on how to proceed with the tax reclaim.
You can review this FAQ for more information: https://www.interactivebrokers.com/faq?id=34492032
We hope this helps!
Hi, i completed the w-8ben, where can i validate if the form is ok?
Hi Mathias, thank you for asking. After logging into Client Portal, you can click “Performance and Reports”> Tax Forms. Please reach back out with any additional questions. We are here to help!
El formulario W 8 tiene costo ?
Hola, gracias por su pregunta. No tiene costo. Consulte estas preguntas frecuentes para obtener instrucciones sobre cómo completar el formulario W-8:https://www.interactivebrokers.com/faq?id=116230294
¡Esperamos que le sea útil!
Hola, gracias por contactarnos. No, no tiene ningún costo. Para actualizar el formulario, por favor revise: https://www.interactivebrokers.com/faq?id=32666329
Can Chinese mainland addresses be written in Pinyin on W-8BEN forms when no English address is available?
Hello, thank you for reaching out. Upon receipt of the document Interactive Brokers will try to arrange for an internal translation.
You should receive a feedback shortly on your email address on record or within the message center in Client Portal. Please view this FAQ for more information: https://www.interactivebrokers.com/faq?id=66002108
Hi, I am a Dutch (NON US) resident. I filled out the W-8BEN, but it doesn’t show up under Performance & Reports/ Tax Documents/ Tax/ Tax Forms. Is there any other way to verify if the form is active? Thank you in advance.
Hi Lazar, thank you for asking. The Form W-8 remains in effect for the period beginning on the date it is signed and ending on the last day of the third succeeding calendar year. IBKR will notify clients in advance when a Form W-8 is about to expire and will present them with the online Tax Form upon login to Client Portal. Please review this FAQ for more information: https://www.interactivebrokers.com/faq?id=27276615
We hope this information is helpful!
Hello. I am having trouble with the W8 documentation. I am a EU citizen of country A but live in another EU country B. I want to claim treaty benefits where I live, country B. I am asked by IKBr for ID/passport/driving license issued by county B which is impossible for me to provide since I’m not a citizen (and don’t have a license). Is there anything I can do to- it seems that I am stuck in a bureaucratic hell. I read online that the IRA cares about my tax id number in country B which I can readily provide. But IKbr doesn’t ask for that so I’m confused?
Hi, thank you for reaching out. e are required to verify your connection with the treaty country since you also have an address outside that country. We can process your claim for treaty benefits if you provide one document from Category (A) AND one document from Category (B) below.
Category A: Provide ANY ONE of the following unexpired documents issued by the treaty country:
Driver’s license
Passport
National Identity Card
AND
Category B: Provide ANY ONE of the following documents that match your address in the treaty country:
Driver’s license
Bank or brokerage statement that is less than 12 months old (see note)
Utility bill that is less than 12 months old (see note)
NOTE: Alternatively, if you cannot provide documents from both categories, please provide a written explanation as to why you are entitled to treaty benefits together with any supporting documentation. We may request further information or documentation from you depending on the explanation provided. Please view this FAQ for more details: https://www.interactivebrokers.com/faq?id=38437747
We hope this helps answer your question!
Hello, I can’t find form W8 under Performance & reports > Tax Documents How can I get a copy of my W8 tax form?
Hi, thank you for asking. For instructions to view your W-8BEN form, please view this FAQ: https://www.interactivebrokers.com/faq?id=32666329