Foreign Person? Use a W-8 Instead

The W-9 is for U.S. persons only

When you sign Part II of a W-9, you certify that you're a "U.S. person", meaning a U.S. citizen, resident alien, or U.S.-formed entity. If you're not, signing a W-9 falsely can have serious consequences for both you and the payer.

Foreign persons and entities use the W-8 series of forms instead. There are five W-8 variants, which one you need depends on who you are.

The five W-8 forms

W-8BEN, for foreign individuals

Used by individuals who are not U.S. citizens or residents but who receive U.S.-source income (royalties, dividends, freelance payments, etc.). Allows you to claim treaty benefits if your country has a tax treaty with the U.S.

W-8BEN-E, for foreign entities

Used by foreign businesses, trusts, and other entities receiving U.S.-source income. More complex than W-8BEN because it includes FATCA classification, entities must categorize themselves under the Foreign Account Tax Compliance Act.

W-8ECI, for income effectively connected to U.S. trade or business

Used when foreign persons or entities have income that's "effectively connected" with a U.S. trade or business. The income is taxed at U.S. ordinary rates rather than the flat 30% withholding rate.

W-8EXP, for exempt foreign organizations

Used by foreign governments, international organizations, foreign tax-exempt entities, and foreign central banks claiming exemption from U.S. withholding.

W-8IMY, for intermediaries and flow-through entities

Used by foreign partnerships, foreign trusts, and intermediaries that hold accounts on behalf of others. Most freelancers and small businesses don't need this one.

The default 30% withholding

Without a properly completed W-8 on file, U.S. payers must withhold 30% of payments to foreign persons under U.S. tax law. The 30% goes to the IRS as foreign income tax.

If your country has a tax treaty with the U.S. (most major countries do, UK, Canada, Germany, Japan, Australia, India, etc.), you may qualify for a reduced rate or exemption. But you only get the treaty benefits if you complete a W-8BEN/BEN-E claiming them.

Common scenarios

Form W-9 is for U.S. persons. If you are not one, the equivalent is a Form W-8, and which of the 6 situations below you are in decides the variant:

• You're a freelancer in another country doing work for a U.S. client → W-8BEN, claim treaty benefits if applicable
• You run a foreign business selling services to a U.S. company → W-8BEN-E
• You earn YouTube ad revenue as a non-U.S. creator → Google has you complete a W-8BEN through their tax interview
• You earn Amazon Associates affiliate income outside the U.S. → Amazon collects a W-8BEN
• You're a foreign author earning U.S. book royalties → W-8BEN with treaty claim
• You operate a U.S. branch of a foreign company → likely W-8ECI

Resident aliens vs non-resident aliens

This is where things get tricky. The IRS classifies non-citizens as either:

• Resident aliens, green card holders, OR people who pass the IRS "substantial presence test" (generally, present in U.S. for 183+ days based on a weighted formula). Resident aliens are taxed like U.S. citizens and use a W-9, not a W-8.
• Non-resident aliens, everyone else. Use a W-8.

If you're not sure which you are, see IRS Publication 519 (U.S. Tax Guide for Aliens) or consult a tax professional familiar with international taxation.

What if you accidentally signed a W-9 as a foreign person?

Submit a corrected W-8 as soon as you realize the mistake. Notify the payer and ask them to update their records. The W-9 you submitted was signed under penalty of perjury, replacing it with the correct W-8 is much better than letting the false certification stand.