A-Jie, who runs a business on Amazon U.S., received a royalty payment from the U.S. early this year, only to discover upon receipt that 30% in taxes had been withheld.

Only then did he realize that before receiving U.S. dollars, he had to fill out a W-8BEN form; if filled out correctly, it could reduce the withholding rate to 10%.

Many people either didn't fill out this form or filled it out incorrectly.

01

When should I fill out Form W-8BEN?

As long as you are a non-U.S. individual receiving payment from a U.S. source, the payer will require a W-8BEN form.

Common scenarios: Opening a U.S. stock brokerage account, receiving payments via Stripe, Amazon KDP royalties, YouTube AdSense ad revenue, freelancing on Upwork, and consulting fees paid by U.S. companies to individuals in China.

For personal use only. If the recipient is a foreign company or LLC, use Form W-8BEN-E; if the recipient is a U.S. resident, use Form W-9.

02

Fill in each column: The first three lines are where mistakes are most likely to occur.

Line 1 Name: Enter your full name in English pinyin as it appears on your passport. Do not write your name in Chinese, and do not use a nickname.

Line 2: Nationality: Enter ’China"; do not write "PRC," "P.R. China," or the Chinese character for "China."

Line 3 Permanent Address: Enter your actual residential address. Under no circumstances should you use a PO Box or a forwarding address. If the IRS sees a PO Box, it will immediately deem the form invalid and apply the 30% withholding rate.

Line 6a Foreign Tax Identification Number (FTIN): Residents of mainland China should enter their 18-digit ID number; on Line 8, the date of birth must be entered in the U.S. format MM-DD-YYYY—entering it in the Chinese year-month-day format is the most common reason for a form being rejected.

If you’re facing a similar situation—where your W-8BEN form keeps getting rejected by your broker or trading platform, and you’re worried about being subject to 30% taxes—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you review each field step by step to ensure your form is approved on the first try. Feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you sort out this entire process from start to finish.

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03

Agreement Discount: 30% reduced to 10%

Part II cites the U.S.-China Tax Treaty: withholding tax on dividends (Article 10/2) is reduced from 30% to 10%; on interest (Article 11/2), it is generally 10%; and on royalties (Article 12/2), it is generally 10%.

Capital Gains: Capital gains from the sale of U.S. stocks by non-U.S. tax residents are generally not subject to U.S. taxation; only the dividend portion is subject to withholding tax.

Important Reminder: There is no comprehensive tax treaty between Hong Kong and the United States—income such as U.S. dividends received through a Hong Kong resident or a Hong Kong company is typically still subject to 30% withholding. This is why many people “fill out the same form but still have 30% withheld.”

04

Validity Period and Tax Refunds

The W-8BEN is valid for three years by default: it is valid for three calendar years from the date of signature and expires on December 31 of the third year. If there are changes to the address, name, or country of tax residency, a new form must be submitted within 30 days.

If you have already had 301 TP3T withheld, you can file a W-8BEN form and simultaneously submit Form 1042-S to request a tax refund. The IRS’s standard review period is approximately 6 months; once the review is approved, the overwithheld taxes will be refunded via the original payment method.

Incorrectly filling out a W-9 form (falsely claiming U.S. residency) constitutes perjury, and the penalties are far more severe than for other types of errors; be sure to use the correct form.

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05

Should I Apply for an ITIN?

In most cases (such as receiving dividends, payments via Stripe, or Amazon royalties), you do not need to apply for an ITIN; you can enjoy the benefits under the tax treaty simply by providing your 18-digit ID number.

An ITIN or SSN is required only in specific situations: for example, U.S. partnerships that withhold tax under Section 1446, or students applying for treaty benefits under Article 20 must have an ITIN or SSN.

Ordinary domestic residents can skip the tax ID application process altogether to avoid unnecessary expenses.

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