Why is it compulsory to sign the W-8BEN Form?
Foreign persons are required to complete and submit W-8Ben form to the withholding agent or payer to establish that they are not US persons, and that they are the beneficial owners of the income for which the W-8Ben form is provided. Under the US Department of the Treasury, Internal Revenue Service regulations, foreign persons, including non-US citizens, are subject to a US tax rate of 30% on certain types of income received from US sources, such as interest, dividends, rents, royalties, annuities, etc. Please refer to the following website for more information: http://www.irs.gov/instructions/iw8ben/ch01.
