TaxInPangea

W-8BEN Treaty Rates by Country

When completing Form W-8BEN Line 10, you need to know the exact treaty rate to claim for your country. This table shows the withholding rates under each US treaty for the most common income types: dividends and interest.

Without a valid W-8BEN, the US statutory rate of 30% applies to all of these.

Top 20 US Treaty Partners: Withholding Rates

CountryDividends (General)Dividends (Qualified)InterestTreaty Article (Div/Int)
United Kingdom15%5%0%Art. 10 / Art. 11
Canada15%5%0%Art. X / Art. XI
Germany15%5%0%Art. 10 / Art. 11
France15%5%0%Art. 10 / Art. 11
Japan10%5%10%Art. 10 / Art. 11
Australia15%5%10%Art. 10 / Art. 11
India25%15%15%Art. 10 / Art. 11
Netherlands15%5%0%Art. 10 / Art. 11
Switzerland15%5%0%Art. 10 / Art. 11
Ireland15%5%0%Art. 10 / Art. 11
Singapore15%5%0%Art. 10 / Art. 11
South Korea15%10%12%Art. 10 / Art. 11
Italy15%5%10%Art. 10 / Art. 11
Spain15%10%10%Art. 10 / Art. 11
Sweden15%5%0%Art. 10 / Art. 11
Mexico10%5%10%Art. 10 / Art. 11
Belgium15%5%15%Art. 10 / Art. 11
Denmark15%5%0%Art. 10 / Art. 11
Finland15%5%0%Art. 10 / Art. 11
New Zealand15%5%10%Art. 10 / Art. 11
General rate applies to portfolio investors (less than 10% ownership). Qualified rate applies when the beneficial owner is a company holding 10% or more of the voting stock of the paying company.

How to Use This Table

When filling out W-8BEN Line 10, you need four pieces of information:

1. Treaty article — Usually Article 10 for dividends, Article 11 for interest

2. Paragraph — Typically paragraph 2(a) for the qualified rate or 2(b) for the general rate

3. Rate — The percentage from the table above

4. Income type — "Dividends" or "Interest"

Example for a German resident receiving US dividends (portfolio investor):

Line 10 should read: The beneficial owner is a resident of Germany within the meaning of Article 10(2)(b) of the treaty and the rate of withholding is 15% on dividend income.

Countries with No US Treaty

If your country does not have a tax treaty with the United States, you cannot complete Part II of the W-8BEN. The 30% statutory rate applies. Notable countries without a US treaty:

  • Brazil (investment treaty only — no income tax treaty in force)
  • Argentina
  • Chile (treaty signed but limited scope, 4% interest only)
  • Saudi Arabia
  • Hong Kong (limited agreement, not a comprehensive treaty)
  • Colombia (treaty in force, but rates are higher than many OECD partners)

    • Key Observations

    Best rates for dividends: Japan (10% general), Mexico (10% general). Most major treaty partners have a 15% general dividend rate. Best rates for interest: UK, Canada, Germany, France, Netherlands, Switzerland, Ireland, Singapore, Sweden, Denmark, Finland all offer 0% interest withholding. If you hold US fixed income from these countries, you should pay zero US withholding tax on interest. Highest rates among major partners: India stands out at 25% general / 15% qualified for dividends and 15% for interest — reflecting the UN model basis of the US-India treaty.

    Important Caveats

  • These rates assume the recipient is the beneficial owner and qualifies for treaty benefits
  • Qualified dividend rates require holding the stock for a minimum period (typically 365 days within a 2-year window)
  • Treaty rates can change — always verify against the current treaty text and IRS Publication 901
  • Some treaties have most-favored-nation clauses that automatically lower rates if the US grants a lower rate to another country
  • Rates shown are maximum rates — the treaty may allow 0% for specific subcategories (e.g., government pension interest)
    • Disclaimer: This guide is for educational purposes. Tax treaties are complex instruments with many provisions, exceptions, and conditions. Always consult a qualified tax professional for advice specific to your situation.

    More Guides

    Claiming Treaty Benefits

    Step-by-step guide to claiming reduced withholding tax rates under tax treaties — W-8BEN for the US, DT forms for the UK, NR301 for Canada, and common mistakes to avoid.

    Complete Guide to Form W-8BEN

    Line-by-line instructions for IRS Form W-8BEN — who needs it, how to complete it, common mistakes, and what happens if you don't file.

    Digital Nomad Tax Guide

    Tax treaty implications for remote workers and digital nomads — PE risk, the 183-day rule, social security totalization, FEIE ($132,900 in 2026), and which treaties help.

    How to Reclaim Overpaid Withholding Tax

    Step-by-step guide to reclaiming excess withholding tax — US Form 1040-NR, UK HMRC DT forms, Canada NR7-R, timelines, and the $16 billion in unclaimed refunds.

    Limitation on Benefits (LOB)

    How Limitation on Benefits clauses prevent treaty shopping, the main LOB tests, and why they matter for claiming treaty withholding rates.

    Limitation on Benefits (LOB): How to Qualify for Treaty Benefits

    A practical guide to Limitation on Benefits provisions in US tax treaties — the 6 LOB tests explained simply, which test fits each entity type, and what happens if you fail.

    OECD vs. UN Model Tax Convention

    Key differences between the OECD and UN Model Tax Conventions — how they allocate taxing rights, set royalty rates, define PE thresholds, and treat technical service fees.

    Permanent Establishment (PE)

    What permanent establishment means in tax treaties, how it triggers source-country taxation, and the typical thresholds that create a PE.

    Residency Tiebreaker Rules

    How tax treaties determine which country has the right to tax when a person is a resident of both — the cascading tiebreaker hierarchy.

    The Multilateral Instrument (MLI)

    What the OECD Multilateral Instrument is, how it modifies existing tax treaties, the Principal Purpose Test, updated PE rules, and which countries signed — and which didn't.

    W-8BEN vs W-8BEN-E: Which Form Do You Need?

    The key differences between IRS Forms W-8BEN and W-8BEN-E — who files which, complexity comparison, and a decision tree for choosing the right form.

    What Is a Tax Treaty?

    An introduction to bilateral tax treaties — how they work, why they exist, and how they reduce double taxation on cross-border income.

    Withholding Tax Basics

    How withholding tax works on cross-border payments — who withholds, when it applies, and how treaties reduce it.