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W-8 forms explained

  • Updated

Please be aware that Saxo does not provide tax advice. 

The purpose of the article is to provide a general background and guidance on Foreign Account Tax Compliance Act (FATCA) regulation and W8-forms. The guidance is intended to support filling in relevant information but must under no circumstances be interpreted as tax advice. Saxo does not provide tax advice.

 

General introduction to US tax

When you invest in U.S. taxable securities, a default withholding tax of 30% is generally applied to income you receive. However, if your country of residence has a double taxation agreement with the United States, you may be able to reduce this rate.

United States income tax treaties - A to Z | Internal Revenue Service

To benefit from the reduced withholding tax, you must complete the appropriate IRS W‑8 form.

  • W-8BEN form is for private clients. 
  • W-8BEN-E form is for corporate clients.
  • If you are flow through entity e.g. a bank, broker, partnership etc. please reach out to your RM to ensure correct documentation.

Providing a valid W‑8 form is mandatory for all new clients to meet U.S. tax reporting obligations, regardless of whether the client is claiming reduced withholding tax or has access to U.S. income. For more information on why this is required, please see the “Best Practices” section.

The article will cover the following:

Guide to complete the US tax forms

For individuals:

For businesses:

Where to submit form & get support

You are required to complete the relevant W-8 form during the onboarding process regardless of your intention to invest in US taxable securities. Should you not have completed the form during onboarding but would like to, the form can be retrieved from the links below.

Once the form has been completed, it should be submitted in a case via the platform through Tooltip Icon > Help Center > Contact us > Write to us > Corporate actions

Important

  • Both joint account holders must complete the W-8 form. Each person needs to fill out and sign their own form.
  • Please also view the section Acceptance of digital signatures for W-8 Forms in Best practices, which explains the minimum requirements if you wish to sign the forms digitally.

 

How long are the forms valid?

A W-8BEN or W-8BEN-E form are valid from when they have been approved and registered until the end of third year unless there's a change in circumstances. For example, if a form has been approved and registered on the 20th of January 2026, then it will be valid until the 31st of December 2029. This is applicable only if you apply for treaty benefits. If you do not apply for treaty benefits the W-8 is valid until revoked or if there's a change in circumstances.

Please note

A change in circumstances could be if you move to another country or change your tax country. Saxo must receive a new W-8 within 30 days of these changes.

 

Best practices

What name should be entered for the beneficial owner on the W-8 form?+
• The name of the beneficial owner must be entered as the full legal name.

• No abbreviations are accepted

What date format should be used when signing the W-8 form?+
• The date format on the signature line must be US format MM-DD-YYYY
Can I make manual corrections to a completed W-8 form? +
• Manual corrections on the form will not be accepted. Please fill out a new form instead.
Can country names be entered as abbreviations on the W-8 form?+
• Spell out the full country name; abbreviations such as BE, UK, and DK will not be accepted.
When is a new W-8 form required if a client changes their tax residence?+
• If you change tax country or move to another country, a new W-8 form must be provided within 30 days. If an updated W-8 form is not received, the default tax rate of 30% withholding tax will be applied to US income.

• Please note that we are unable to support having U.S. persons as clients. The IRS deifition of US persons found here

What are the requirements for the residential address on the W-8 form?+
• It is mandatory to complete the residential address, including the postal code, and no abbreviations are accepted. The address must match the address registered with the local authorities (e.g. the business register).
When should the mailing address section be completed?+
• The mailing address should only be populated if it is different from the registered address.
What requirements apply to the TIN entered on the W-8 form?+
• The TIN entered on the W-8 must match the beneficial owner or legal entity.
How should the Chapter 3 status be selected on the W-8 form?+
• The Chapter 3 status must align with the legal type of the company according to IRS definitions. Please note that IRS classifications may differ from those used in local jurisdictions.
Are there any additional requirements for Chapter 4 classifications?+
• For Chapter 4, clients must remember to complete the additional applicable sections.
Should the FATCA and CRS classifications normally be the same?+
• FATCA and CRS status will generally be the same (e.g. passive and passive). Only in rare cases will they differ.
Why must the W-8 form be completed during the onboarding if my client has no intention of trading US shares+
• As per FATCA regulations, Saxo must determine if an account holder is considered a US resident for tax purposes at the time of account opening. By submitting the relevant W-8 form, we can ensure that our clients are documented as non-resident aliens, regardless of their trading behaviour, including beneficial owners of amounts subject to withholding in the US market.
Am I required to renew my clients W-8 form after the third year?+
• Renewal of US tax forms is not mandatory in itself if you do not wish to maintain treaty benefits.

• However, if you wish to maintain US tax relief status, please renew it proactively a few months before it expires.

How should the W-8 form be filled and signed for minors?+
• When a minor opens an account, they must be documented with a W-8BEN. The W-8BEN should be filled with the minor’s information but should be signed by a legal guardian. The legal guardian must tick of the box, where they certify that they have the capacity to sign.
Acceptance of digital signatures for W-8 Forms+
Saxo may accept electronically signed W-8 Forms, provided the form clearly demonstrates that it was signed by the person named on the form or by an authorised signatory. The IRS requirements are technology-neutral and do not require the use of a specific electronic signature provider or framework.
 
This means that electronically signed W-8 Forms can be accepted where the signature contains sufficient evidence to confirm who signed the document, when it was signed, and that the signature relates to the specific form submitted.
 

Minimum Requirements for an Electronic Signature

 
For an electronically signed W-8 Form to be considered valid, the form must include the following mandatory elements:
 
  • Signer name (name of authorized signatory)
  • Timestamp (date and time of signing)
  • Electronic signature statement (e.g. "This form has been electronically signed")

Forms missing any of the above elements will not be accepted as validly signed.

 

Recommended Supporting Information

Where available, clients should ensure that the electronic signature includes a unique transaction ID, signature ID, or similar identifier linking the signature to the submitted document. While this is not mandatory, it supports audit trail and data integrity requirements.
 

 

Important

The answers provided in the Q&A sections are based on IRS guidance, which Saxo is audited against; therefore, these guidelines must always be followed.

 

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