The W-8BEN-E form is used by corporate entities outside of the US to document their statuses for the purposes of US Withholding Tax and Reporting.
Foreign persons are subject to U.S. tax at a 30% rate on income they receive from dividends originating from U.S. sources. As a withholding agent, we may rely on a properly completed W-8BEN-E Form to treat a payment associated with the W-8BEN-E Form as a payment to a foreign person who beneficially owns the amounts paid and apply a reduced rate of withholding as a resident of a foreign country with which the United States has an income tax treaty (notably 15%).
The W-8BEN-E Form shall remain valid for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect.
Please refer to the attached guidance note with instructions on how to complete the aforementioned form. At Moneybase we remain available for additional clarifications you may require on 2568 8688 or via live chat or email on [email protected] seven days a week.