W-8BEN Form

What is the W‑8BEN Form?

The W‑8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) is a U.S. tax form used by non-U.S. individuals to declare that they are not subject to U.S. income tax on certain types of income - including payments for freelance or contract work.

If you’re a U.S. company paying an international contractor, this form helps avoid backup withholding and ensures proper IRS reporting.

How the W‑8BEN Form Works

• Filed by: Non-U.S. individual (not companies – they use W‑8BEN‑E)

• Submitted to: The paying company or platform, not the IRS

• Purpose: Certify foreign status + claim reduced withholding under a tax treaty (if available)

The form includes:

• Legal name and address of the contractor

• Country of citizenship and tax residency

• Foreign tax identification number (if required)

• Signature and certification

Platforms like SigmaRemote help contractors auto-generate W‑8BEN forms during onboarding and store them securely.

Why W‑8BEN Matters

U.S. companies that pay international freelancers or contractors must collect this form to avoid:

• ❌ IRS penalties

• ❌ 30% backup withholding

• ❌ Misclassification risks during audits

It’s especially relevant if you’re using platforms like Upwork, Deel, or SigmaRemote - all require this form as part of their compliance stack.

Example Use Case

A U.S.-based SaaS company hires a developer in India.
During onboarding via SigmaRemote, the developer fills out a digital W‑8BEN form.
This allows the company to avoid tax withholding and stay compliant with IRS rules.

Related Glossary Terms

• Contractor Classification

• Cross-Border Compliance

• Global Payroll

• 1099-NEC

• Employer of Record (EOR)

Explore More

📘 [How SigmaRemote automates global tax forms →]
📘 [Avoid IRS fines when hiring contractors →]
📘 [Read our guide: W‑8BEN vs W‑9 for international hiring →]