How to Complete Form W-8BEN Instructions
for Nonresident Alien Individuals
Purpose of Form:
You must provide Form W-8BEN to:
- avoid backup withholding on dividends and gross proceeds from the sale of
stock purchased through an employer stock option plan, stock purchase plan or
restricted stock plan;
- obtain a reduced rate of U.S. withholding tax on dividends on U.S. stock
pursuant to a tax treaty with the United States.
What is a Nonresident Alien?
A nonresident alien is an individual who is neither a U.S. citizen nor an alien
resident in the United States. You may not complete Form W-8BEN if you (1)
hold a "green card" indicating lawful permanent residence in the United States, or
(2) have a "substantial presence" in the United States for the calendar year. A
substantial presence means physical presence in the United States for at least
(a) 31 days during the current year and (b) 183 days during the latest 3-year
period, including all the days in the current year, 1/2 of the days in the first
preceding year and 1/6 of the days in the second preceding year. If you are a
U.S. citizen resident in a foreign country or in Puerto Rico, you may not complete
a Form W-8BEN. Instead, complete a Form W-9 (Request for Taxpayer
Identification Number and Certification).
What is an Exempt Foreign Person?
For broker transactions, you are an exempt foreign person, if in addition to being
a nonresident alien and not being engaged in a U.S. trade or business, you are
not or do not plan to be present in the United States for 183 days or more during
the calendar year.
Who is a Beneficial Owner?
You are a beneficial owner if you own the income beneficially and are not a
nominee, a fiduciary or agent for another person. For treaty purposes, you are a
beneficial owner if you are required to account for the income in computing your
income tax liability in your country of residence.
Certificate of Foreign Status:
To certify to your foreign status and establish an exemption from backup
withholding, you must (1) provide all the information required in Part I
(Identification of Beneficial Owner) and (2) sign and date the Certification in Part
III.
Line-by Line Instructions
You must first complete the top section by stating your GID or PUID and your
company’s name in the boxes provided
Part I – Identification of Beneficial Owner
Line 1 – Name of Beneficial Owner: State your full and complete legal name.
The name shown on the Form W-8BEN should agree with the name shown on
your passport or other government issued identification card. Please do no use a
nickname or other alias. If it is customary in your country to use your mother’s
maiden name, please include it. We ask that you state your given name first
and your surname last (including a maternal name that is part of your legal
name), even if it is customary in your country to do the reverse. Please do
not abbreviate any part of your name.
Line 4 – Permanent Residence Address: Please write your full permanent
residence address on line 4 in the spaces provided. Your permanent residence
address should be in the country in which you are a resident for purpose of the
country’s income tax. Do not provide a post office box or an “in-care-of” address
on this line. Do not provide the address of an financial institution or an employer.
Please write the name of the country in the separate box on the right side of the
address line. Do not abbreviate the name of the country.
Line 5 – Mailing Address: If you use a mailing address that is different from
your permanent residence address, please write the full address on Line 5 in the
spaces provided. Do not abbreviate the name of the country.
Additional Documentation Requirements: If you use a mailing address in the
United States, you need to submit (1) a copy of your most recent passport or
other government issued identity card containing your photograph, and (2) a
written explanation of why you use a U.S. address. You should sign and date the
explanation. If the passport or other identity card was issued more than three (3)
years ago, and you are claiming treaty benefits, you also need to submit a recent
utility bill (or a medical bill or a bank statement) with your foreign home address.
Line 6 – U.S. Taxpayer Identification Number (“TIN”): A U.S. TIN means a
social security number (“SSN”) issued by the U.S. Social Security Administration
or an individual taxpayer identification number (“ITIN”) issued by the U.S. Internal
Revenue Service. You may have an SSN, even if you are not a U.S. citizen or
green card holder, because you were previously employed in the United States.
If you have a U.S. TIN, please enter it on line 6.
Line 7 – Foreign Taxpayer Identification Number (Optional): If the foreign
country in which you reside for tax purposes has issued you a tax identifying
number, please enter it on line 7. For example, if you are a resident of Canada,
enter your Social Insurance Number.
Part II – Treaty Claim:
If you are resident in a country that has a tax treaty with the United State, you
may be eligible to claim a reduced rate of U.S. withholding tax n dividends paid
on stock issued by a U.S. corporation. To make a treaty claim, you must
complete Part II of Form W-8BEN in addition to completing Parts I and III.
Line 9a – You must check/mark the box on line 9a and print the name of the
country in which you claim to be resident for tax treaty purposes in the spaced
provided. The following countries have tax treaties in effect with the United
States: Australia, Austria, Barbados, Belgium, Canada, China (excluding Hong
Kong), Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France,
Germany, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica,
Japan, Kazakhstan, Korea, Latvia, Lithuania, Luxembourg, Mexico, Morocco,
Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Romania,
Russia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland,
Thailand, Turkey, Ukraine, United Kingdom and Venezuela.
Notice of Change in Status:
If there is a change in your circumstances that makes any of the certifications
provided on Form W-8BEN incorrect, you must notify Morgan Stanley Smith
Barney within 30 days after the change occurs and file a revised form. A change
in status may result if you move to a different country. If you become a U.S.
citizen or a U.S. resident, you must provide a Form W-9.
Period of Validity:
Absent a change in status, a Form provided without a TIN will expire on the last
day of the third succeeding calendar year after it is signed. For example, a Form
W-8BEN signed on April 10, 2001 will expire on December 31, 2004. A Form W8BEN furnished with a TIN will remain in effect indefinitely.
Signing the Form:
Form W-8BEN must be hand signed and dated by the beneficial owner of the
income. Photocopies and facsimiles are not acceptable. If the Form is completed
by an agent, a copy of the power of attorney (e.g., IRS Form 2848) specifically
authorizing the agent to represent the principal in making, executing and
presenting the Form W-8BEN must accompany the Form.
For additional information on completing this form, you can go to www.irs.gov