What's a W-8BEN tax form?
A W-8BEN is a US Internal Revenue Service (IRS) form. It's how people who aren't US residents confirm their foreign status for US tax purposes.
Why do I need to submit a W-8BEN tax form?
We need you to submit a W-8BEN tax form so we can:
Confirm you're not a US resident for tax purposes;
Claim the lower rate of US withholding tax on dividends available to Australian tax residents eligible under the Australia–US tax treaty; and
Confirm you're an exempt foreign person, so backup withholding doesn't apply when you sell.
Our brokerage provider prepares the form using the details you give us when you open a US Investing account, and holds it on file. It isn't lodged with the IRS as a tax return.
How long does my W-8BEN last?
A W-8BEN generally stays valid from the day it's signed until 31 December of the third year after that. A form signed in 2026 generally lasts until 31 December 2029.
You'll need a new one before it expires, or sooner if something on it is no longer correct, such as your residential address or tax residency details.
We're unable to accept W-8BEN forms you've submitted to other brokers. Each broker needs its own.
What happens if I don't have a valid W-8BEN?
| With a valid W-8BEN form | Without a valid W-8BEN form |
US dividends | Generally 15%, if you're an Australian tax resident eligible for treaty benefits | Generally 30% |
Selling shares | Generally no US tax or withholding on your sale proceeds | Generally 24% of your sale proceeds held back |
Other US withholding may apply depending on the type of asset you hold, not only whether you have a W-8BEN. Some investments have special withholding rules even when your form is valid. The rates in the table are the usual outcomes for common shares and dividends; they don’t cover every product type.
Dividends. The US normally withholds up to 30% on dividends paid to people who aren't US residents. The Australia–US tax treaty generally brings that down to 15%. Your form is what lets us claim the lower rate for you.
Selling shares. Australians generally don't pay US tax on the gain when they sell US shares. Your form isn't what gives you that; it's what confirms you're not a US taxpayer. Without a valid form, our brokerage provider generally has to treat your account as though it belongs to a US taxpayer who hasn't given their tax details, and hold back part of your sale proceeds. This is called backup withholding. Other withholding rules may still apply in some cases, for example, certain US property–related investments. Your form helps document foreign status; it isn’t the only factor that can affect withholding.
Two things to know about it. It applies to the full amount you sell for, not just your profit, so it can apply even if you sell at a loss. And it isn't a final tax; it can generally be claimed back from the IRS.
Example: Say you sell US shares for USD$1,000.
With a valid form, you'd generally receive the full USD$1,000.
Without one, 24% could be held back, so around USD$240, leaving you USD$760. You may be able to claim that back from the IRS.
This doesn't account for fees, transaction costs, currency conversion, Australian tax, or your personal circumstances.
What else should I know?
A W-8BEN only deals with US tax. It doesn't change how your investments are taxed in Australia. You may still have Australian tax to pay on dividends and on any capital gain.
This is general information only. It doesn't take your objectives, financial situation or needs into account. You should consider getting your own taxation advice.