Many countries have a tax treaty with the US, allowing the tax rate on dividends to be reduced from 30% to, for example, 15% or even 0%. Example: - Without W-8BEN: You receive $100 in dividend, but 30% ($30) is withheld. - With W-8BEN (and a 15% tax treaty): You only pay $15 tax, so you receive $15 extra. |