what is a w8

A W-8 form is a series of forms used by foreign individuals and businesses to establish their foreign status for tax purposes in the United States. The forms are used to verify the country of residence for tax purposes and certify that the individual or entity is not a US taxpayer. There are five different variations of the W-8 form, each serving a different purpose. The W-8 BEN is the specific form for individuals to establish foreign status for the purposes of taxation. Employers or withholding agents may request workers to submit a W-8 BEN form, regardless of whether they are claiming a reduced rate of, or exemption from, withholding. The W-8 BEN-E is a slightly different variation that is used when contracting with a foreign entity rather than a foreign individual. If a worker does not fill out Form W-8 BEN, they are subject to a tax rate of 30%, even if they qualify for a lower rate. The W-8 BEN form expires every three years.