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If you are claiming treaty benefits under an

grant income from taxation require that the recipient be a

income tax treaty entered into force after

resident of the other treaty country at the time of, or

December 31, 1986, do not check box 9d.

immediately prior to, entry into the United States. Thus, a

CAUTION

Instead, check box 9c.

student or researcher may claim the exemption even if he

or she no longer has a permanent address in the other

Line 10

treaty country after entry into the United States. If this is

Line 10 must be used only if you are claiming treaty

the case, you may provide a U.S. address on line 4 and

benefits that require that you meet conditions not covered

still be eligible for the exemption if all other conditions

by the representations you make in lines 9a through 9d.

required by the tax treaty are met. You must also identify

However, this line should always be completed by foreign

on line 9a the tax treaty country of which you were a

students and researchers claiming treaty benefits. See

resident at the time of, or immediately prior to, your entry

Scholarship and fellowship grants below for more

into the United States.

information.

Completing line 10. You must complete line 10 if

The following are additional examples of persons who

you are a student or researcher claiming an exemption

should complete this line.

from taxation on your scholarship or fellowship grant

•

Exempt organizations claiming treaty benefits under

income under a tax treaty.

the exempt organization articles of the treaties with

Nonresident alien student or researcher who

Canada, Germany, Mexico, and the Netherlands.

•

becomes a resident alien. You must use Form W-9 to

Foreign corporations that are claiming a preferential

claim an exception to a saving clause. See Nonresident

rate applicable to dividends based on ownership of a

alien who becomes a resident alien on this page for a

specific percentage of stock.

•

general explanation of saving clauses and exceptions to

Persons claiming treaty benefits on royalties if the

them.

treaty contains different withholding rates for different

types of royalties.

Example. Article 20 of the U.S.-China income tax

This line is generally not applicable to claiming treaty

treaty allows an exemption from tax for scholarship

benefits under an interest or dividends (other than

income received by a Chinese student temporarily

dividends subject to a preferential rate based on

present in the United States. Under U.S. law, this student

ownership) article of a treaty.

will become a resident alien for tax purposes if his or her

stay in the United States exceeds 5 calendar years.

Nonresident alien who becomes a resident alien.

However, paragraph 2 of the first protocol to the

Generally, only a nonresident alien individual may use

U.S.-China treaty (dated April 30, 1984) allows the

the terms of a tax treaty to reduce or eliminate U.S. tax

provisions of Article 20 to continue to apply even after the

on certain types of income. However, most tax treaties

Chinese student becomes a resident alien of the United

contain a provision known as a “saving clause.”

States. A Chinese student who qualifies for this exception

Exceptions specified in the saving clause may permit an

(under paragraph 2 of the first protocol) and is relying on

exemption from tax to continue for certain types of

this exception to claim an exemption from tax on his or

income even after the recipient has otherwise become a

her scholarship or fellowship income would complete

U.S. resident alien for tax purposes. The individual must

Form W-9.

use Form W-9 to claim the tax treaty benefit. See the

instructions for Form W-9 for more information. Also see

Nonresident alien student or researcher who becomes a

Part III

resident alien later for an example.

If you check this box, you must provide the withholding

Scholarship and fellowship grants. A nonresident

agent with the required statement for income from a

alien student (including a trainee or business apprentice)

notional principal contract that is to be treated as income

or researcher who receives noncompensatory

not effectively connected with the conduct of a trade or

scholarship or fellowship income may use Form W-8BEN

business in the United States. You should update this

to claim benefits under a tax treaty that apply to reduce

statement as often as necessary. A new Form W-8BEN

or eliminate U.S. tax on such income. No Form W-8BEN

is not required for each update provided the form

is required unless a treaty benefit is being claimed. A

otherwise remains valid.

nonresident alien student or researcher who receives

compensatory scholarship or fellowship income must use

Part IV

Form 8233 to claim any benefits of a tax treaty that apply

Form W-8BEN must be signed and dated by the

to that income. The student or researcher must use Form

beneficial owner of the income. If the beneficial owner is:

W-4 for any part of such income for which he or she is

•

An individual, that person must sign and date the form.

not claiming a tax treaty withholding exemption. Do not

The capacity line should be left blank. For a minor child,

use Form W-8BEN for compensatory scholarship or

a parent or guardian may sign and must enter “parent” or

fellowship income. See Compensation for Dependent

“guardian,” whichever applies, on the capacity line.

Personal Services in the Instructions for Form 8233.

•

A corporation, the form must be signed and dated by

If you are a nonresident alien individual who

the president, vice president, treasurer, assistant

TIP

received noncompensatory scholarship or

treasurer, chief accounting officer, or any other officer

fellowship income and personal services income

(such as tax officer) authorized to sign. If the form is filed

(including compensatory scholarship or fellowship

on behalf of a corporation by a receiver, trustee, or

income) from the same withholding agent, you may use

assignee, the fiduciary must sign instead of a corporate

Form 8233 to claim a tax treaty withholding exemption for

officer. Forms signed by a receiver or trustee in

part or all of both types of income.

bankruptcy on behalf of a corporation must be

Completing lines 4 and 9a. Most tax treaties that

accompanied by a copy of the order or instructions of the

contain an article exempting scholarship or fellowship

court authorizing signing of the form. The capacity line

-6-

Instructions For Form W-8ben Draft - Certificate Of Foreign Status Of Beneficial Owner For United States Tax Withholding - 2008 Page 7

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