W-8BEN
Form W-8BEN is a US IRS form on which a non-US individual certifies their foreign status (and any tax-treaty benefits) to a US payer, so US tax is withheld at the correct, often reduced, rate.
A US payer must generally withhold US tax on certain payments (e.g. interest, dividends, royalties) to non-US persons. By providing a W-8BEN, a German individual certifies they are not a US taxpayer and claims any reduced withholding rate available under the Germany-US tax treaty.
There is a separate entity version, W-8BEN-E, for companies. The form goes to the payer, not the IRS, and must be kept current. It is routine paperwork for Germans receiving US-source income.
Related providers: Accounting & Tax
See also: Doppelbesteuerungsabkommen (tax treaty), EIN (Employer Identification Number)
Frequently asked questions
- W-8BEN or W-8BEN-E?
- W-8BEN is for individuals; W-8BEN-E is for entities (companies). A German person uses W-8BEN; a German company uses W-8BEN-E.
- Does a W-8BEN reduce my US tax?
- It lets the payer apply the correct withholding - including any reduced rate under the Germany-US treaty - instead of the default maximum. It certifies status; it is not itself a tax return.