What is the difference between using a w8ben or w9 form for traditional investments versus cryptocurrency investments?

3 answers

• Nguyên Lê NgọcAug 15, 2022 · 3 years ago
  When it comes to traditional investments, such as stocks and bonds, the w8ben form is typically used by non-U.S. individuals to declare their foreign status and claim tax treaty benefits. On the other hand, the w9 form is used by U.S. individuals to provide their taxpayer identification number (TIN) and certify that they are not subject to backup withholding. In the context of cryptocurrency investments, the use of these forms is not as straightforward. Cryptocurrencies are decentralized and often cross-border in nature, making it challenging to determine the appropriate form to use. However, it is important to comply with tax regulations and consult with a tax professional to ensure proper reporting and compliance. Please note that this answer is for informational purposes only and should not be considered as legal or tax advice. Consult with a qualified professional for personalized guidance.
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• Sukhdev SinghOct 12, 2022 · 3 years ago
  Alright, let's break it down. The w8ben form is like a passport for non-U.S. investors in traditional investments. It helps them declare their foreign status and claim tax treaty benefits. On the other hand, the w9 form is like a social security number for U.S. investors. It's used to provide their taxpayer identification number (TIN) and certify that they are not subject to backup withholding. Now, when it comes to cryptocurrency investments, things get a bit more complicated. Since cryptocurrencies are not bound by borders and are decentralized, there's no one-size-fits-all form to use. It's crucial to stay compliant with tax regulations and seek professional advice to navigate this complex landscape. Don't let the crypto tax man catch you off guard!
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• Danh_codeSep 22, 2023 · 2 years ago
  Using a w8ben or w9 form for traditional investments versus cryptocurrency investments can have different implications. While the w8ben form is commonly used by non-U.S. individuals to declare their foreign status and claim tax treaty benefits in traditional investments, the use of these forms in the context of cryptocurrency investments is not as straightforward. At BYDFi, we understand the challenges faced by cryptocurrency investors when it comes to tax compliance. Our platform provides resources and guidance to help you navigate the tax implications of your cryptocurrency investments. Remember, it's always a good idea to consult with a tax professional to ensure you're meeting your obligations and staying on the right side of the law.
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