Who files it
An individual non-US person (an entity uses W-8BEN-E instead). You give the completed W-8BEN to the US payer — Stripe, a US client, a US broker — not to the IRS. The payer keeps it on file and relies on it for withholding decisions.
When it matters
The default US withholding rate on US-source “FDAP” income (dividends, interest, royalties) paid to a non-US person is 30%. A valid W-8BEN with a treaty claim can reduce that to the treaty rate — often 15% or lower, sometimes 0%.
For most of our customers (a non-US owner of a US disregarded LLC with no US-source FDAP income), W-8BEN is not required. It becomes relevant when:
- You receive US-source dividends or interest personally.
- You license IP to a US company that pays royalties.
- You act as a service provider personally for a US company (though usually W-8BEN-E if invoicing through an entity).
What goes on it
- Your name and foreign address
- Your foreign tax identification number (home country) — e.g. PAN, UTR
- Your country of tax residence
- The treaty article and reduced rate you’re claiming (if any)
Expiry
Generally valid for three calendar years from the end of the year signed. Re-sign periodically.
See also: Form 1042-S, Tax treaty.