What is IRS Form W-8BEN?
Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting) is submitted by non-resident aliens (NRAs) directly to their brokerage or financial institution (not mailed to the IRS).
What Happens If You Don't File It
Without an active W-8BEN on file (it expires every 3 calendar years), your brokerage must apply 24% mandatory backup withholding on gross proceeds from stock sales and 30% withholding on dividends. Filing W-8BEN exempts non-U.S. residents from U.S. capital gains withholding and unlocks lower dividend withholding rates (typically 15%) under applicable bilateral tax treaties.