When and How to Renew Your W8BEN Form

The W8BEN form is essential for reducing or eliminating US withholding tax on your income, but did you know it expires after a certain period? Failing to renew your form can result in higher tax withholdings, even if you still qualify for reduced rates under a tax treaty.

In this post, we’ll cover when and how to renew your W8BEN form to ensure that your tax benefits remain in place and your income from US sources isn’t unnecessarily taxed at the higher 30% rate.

How Long is a W8BEN Form Valid?

Once you’ve submitted the W8BEN form, it’s generally valid for three years from the date you signed it. After this period, you’ll need to submit a new form to continue benefiting from any applicable tax treaty. If your circumstances change—such as moving to a new country or becoming a US resident—you’ll need to file a new form sooner.

For more on the form's validity, check out our post How Long is a W8BEN Form Valid For?.

Why You Need to Renew

If your W8BEN form expires and you don’t submit a new one, the US-based companies paying you will be required to withhold the full 30% tax on your income. This applies to dividends, interest, royalties, and other US-sourced income. By keeping your form up to date, you ensure you continue to benefit from any reduced tax rates under a tax treaty.

Pro Tip:

Using our W8BEN Form Generator will remind you when it’s time to renew, so you can avoid missing the deadline.

When to Renew Your W8BEN Form

The form must be renewed every three years, but you should also file a new form if:

• You move to a new country and change your tax residency.
• Your personal information (such as your name or address) changes.
• You become a US resident and are no longer eligible for the W8BEN form.

How to Renew Your W8BEN Form

Renewing your W8BEN form is a straightforward process. Simply fill out a new form with your current information and submit it to the same US payer (e.g., your US client, brokerage, or financial institution).

Here’s a quick overview of what you’ll need to do:

1. Download or Generate the Form: You can fill out a new W8BEN form manually, or use our W8BEN Form Generator to ensure you don’t miss any important details.
2. Update Your Information: Make sure all your personal and tax residency information is up to date.
3. Submit the Form: Send the updated form to your US payer before your previous one expires.

What Happens If You Forget to Renew?

If you fail to renew your W8BEN form before the three-year period ends, the IRS requires US companies to withhold 30% of your income. This can be a significant financial hit, especially if you are eligible for a much lower rate under a tax treaty. You can still submit a new form later, but any over-withholding in the interim will need to be reclaimed through a refund process, which can take time.

Conclusion

Renewing your W8BEN form is essential to maintain reduced withholding tax rates on your US-sourced income. Don’t wait until your form expires—be proactive and submit a new form every three years, or whenever there is a significant change in your residency or personal details.

Our W8BEN Form Generator can help streamline the process and remind you when it’s time to renew, ensuring that you continue to enjoy the tax benefits you’re entitled to.