W-8 BEN Tax Form: What It Is & Who Needs To File One

Without submitting Form W-8BEN, the client would be required to withhold 30% of the payment for tax purposes. However, since Germany has a tax treaty with the U.S., the designer can use Form W-8BEN to claim a reduced withholding rate. Typically, income for foreign businesses is also withheld at a rate of 30% if no …