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Form W-8BEN

Tax & Turkey

An IRS form that individuals who are not US tax residents fill in and give to their broker.

A Turkish resident who provides it can claim benefits under the US-Turkey tax treaty, which lowers withholding on portfolio dividends from the default 30% to 20%. The form is generally valid until the end of the third calendar year after the year it is signed, and must be replaced sooner if your address or tax residency changes. Rates and thresholds can change; check with a tax adviser.

Example

On a gross US dividend of $100, a valid W-8BEN means $20 is withheld and $80 reaches your account. Without the form, $30 is withheld and $70 is left.

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