IRS forms used by non-U.S. individuals (W-8BEN) and entities (W-8BEN-E) to certify their foreign status and claim tax treaty benefits for income earned from U.S. sources.
What is Form W-8BEN / W-8BEN-E?
W-8BEN and W-8BEN-E are tax forms issued by the U.S. Internal Revenue Service (IRS) and are used by foreign individuals or entities that receive income from U.S. sources. These forms serve two main purposes: to confirm that the payee is not a U.S. tax resident, and to allow the payee to claim the benefit of a tax treaty between their country and the United States—often resulting in a lower withholding tax rate.
The W-8BEN form is designed for individuals, such as freelancers or consultants living outside the U.S., while the W-8BEN-E is meant for foreign companies, including LLCs, corporations, or partnerships. For example, a Turkish company invoicing a U.S. business for services may be asked to provide a W-8BEN-E. If there’s a tax treaty between the U.S. and Turkey that reduces the default 30% withholding rate, this form allows the Turkish company to benefit from the reduced rate.
These forms are not submitted directly to the IRS—they’re given to the U.S.-based payer or platform (like Stripe, PayPal, or a U.S. client) and kept on file. They are generally valid for three years unless there’s a change in circumstances, such as a change in ownership or tax residency.
Filling out these forms correctly is critical for non-U.S. founders, service providers, or e-commerce sellers. Without a valid W-8BEN or W-8BEN-E, the U.S. party is required to withhold the full 30% on payments, even if a tax treaty exists. Using the appropriate form helps ensure you’re not overtaxed and that your income from U.S. sources is treated fairly under the law.
