Which Do I Need: W-8BEN, W-8BEN-E, or W-9?

W-8BEN: Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

The W-8BEN form is intended for foreign individuals (non-U.S. residents) to establish that they are a non-resident alien for the purpose of tax withholding, and, where eligible, to claim a reduced rate of withholding under an applicable tax treaty (U.S.-source income paid to foreign persons is otherwise withheld at 30%).

Income must be from U.S. sources and includes, but not limited to, interest, dividends, rent income, royalties, and payments as a contractor/freelancer.

W-8BEN-E: Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)

The W-8BEN-E form is intended for foreign entities, similar to the W-8BEN, for the purpose of:

• Certifying non-U.S. status of overseas entity
• Claiming exemptions
• Claiming reduced rates of withholding under a tax treaty

W-9: Request for Taxpayer Identification Number and Certification

The W-9 form is used domestically in the U.S. and is used for the following:

• Providing correct taxpayer identification number (TIN) in the form of a SSN (Social Security Number), or in the form of an EIN (Employer Identification Number)
• Classifying the federal tax classification
• Claim exemptions

Use Cases For Each Form:

• W-8BEN: A Canadian individual investing in U.S. stocks and receiving dividends
• W-8BEN-E: A European corporation with a U.S. bank account earning interest income
• W-9: A freelance graphic designer based in the U.S. providing services to a U.S. based entity

Disclaimer: This article is for informational purposes only and is not meant to be financial or legal advice.