Form W-8BEN

When you open a trading account for stocks or stock CFDs or invest in a DARWIN that has underlying trades in these financial instruments, you'll be required to download, complete, sign and send us Form W-8BEN.

Contents

• Purpose of Form
• Expiration
• Change in circumstances
• Specific Instructions
• W8 Form for Corporate Accounts
• Dividend Withholding Rate per Treaty

Purpose of Form

Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S. sources. U.S. stock dividends  and dividend equivalents received when trading CFDs referenced to U.S. stocks, are counted as such income.

If you receive dividends or dividend equivalents, you must provide Form W-8BEN to:

• Establish that you are not a U.S. person;
• Claim that you are the beneficial owner of the income for which Form W-8BEN is being provided; and
• If applicable, claim a reduced rate of withholding as a resident of a foreign country with which the United States has an income tax treaty and who is eligible for treaty benefits.

Darwinex and its partner and prime brokers rely on a properly completed Form W-8BEN to treat a payment associated with the Form W-8BEN as a payment to a non - U.S. person who beneficially owns the amounts paid. If applicable, we rely on the Form W-8BEN to apply a reduced rate of withholding at source.

Clients under EU regulation

Darwinex has two regulated entities supervised by their respective authorities: one in the European Union (CNMV) and one in the United Kingdom (FCA). While the entity regulated in the UK has an agreement with the Internal Revenue Service (IRS) as a qualified intermediary, the entity regulated in the EU does not have such agreement.

Entities without this status do not have the necessary provisions to apply a reduced withholding tax rate on dividends to their non-US clients (NRA clients).

Expiration of Form W-8BEN

Form W-8BEN will remain in effect for purposes of establishing foreign status for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a Form W-8BEN signed on September 30, 2015, remains valid through December 31, 2018.

Change in circumstances

If a change in circumstances makes any information on the Form W-8BEN you have
submitted incorrect, you must notify us within 30 days of the change in circumstances and file a new Form W-8BEN or other appropriate form.

A change of address to an address in the United States is a change in circumstances. Generally, a change of address within the same foreign country or to another foreign country is not a change in circumstances.

However, if you use Form W-8BEN to claim treaty benefits, a move outside the country where you have been claiming treaty benefits is a change in circumstances.

Specific Instructions

Download Complete Instructions for Form W-8BEN (PDF)

W8 Form for Corporate Accounts

Corporate account holders are required to complete Form W-8BEN-E.

Note that a limited liability company's Chapter 3 status will most probably be "Corporation" and its Chapter 4 status "Active NFFE".

• Download Form W-8BEN-E (PDF)
• Download IRS instructions for Form W-8BEN-E (PDF)

Dividend Withholding Rate per Treaty

If a country appears in column 1 but column 2 states N/A then the statutory rate of withholding applies, which is 30%. Similarly, if a country is not listed in column 1, the applicable withholding rate is 30%.

Last run 8/3/2020.