You must give Form W-8BEN to the withholding payer if you are a nonresident alien who is the beneficial owner of an amount subject to withholding.

W-8BEN: This is reportedly the most commonly used W 8 form. It’s used to certify foreign status regarding tax withholding on income such as dividends, interest, royalties, rents, and annuities, and permits individuals to claim tax treaty benefits. To receive the benefits of a tax treaty between the U.S. and Canada, the filer must provide a tax identification number, and certify that he or she is a resident of Canada. Foreigners are generally taxed at a 30% rate on income they receive from the U.S., so tax treaties reduce withholding.

For example: If you have a pension payment and you are a Canadian receiving a U.S. pension, the withholding can be reduced from 30% to 15%.  On the W-8 Form Part II, claim Treaty Provision of Article XVIII – 15%.

W-8ECI (effectively connected income): This form certifies that a foreign person’s income is tied to work in the U.S. That’s to exempt it from the 30% tax on income from the U.S.