W-8BEN FORM

Q & AW-8BEN FORM
tony asked 3 months ago

Dear Sir,
What is this and is it compulsory to fill up this form if we as Malaysian invest in US stock market?
After filling up this form, what is the next step we need to do with it?
Thanks.

1 Answers
KCLau Staff answered 3 months ago

More details on the US IRS website: https://www.irs.gov/instructions/iw8ben
If you receive certain types of income (in your case will be dividend from stocks), you must provide Form W-8BEN to:

  • Establish that you are not a U.S. person;
  • Claim that you are the beneficial owner of the income for which Form W-8BEN is being provided
  • If applicable, claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States has an income tax treaty and who is eligible for treaty benefits. (not applicable to Malaysians since there is no tax treaty between Malaysia and US)

In summary, all foreign investors who are buying US stocks will need to submit this form, required by the US IRS.