IRS Form W-8 BEN allows non-U.S. individuals to certify their foreign tax status to Coinbase by providing information such as their name, permanent residence address for tax purposes, and any applicable tax treaty benefits. Without a valid IRS Form W-8 BEN on file, Coinbase must presume you're a U.S. individual and apply 24% backup withholding tax on certain transactions per U.S. tax law.
Verify your Form W-8 BEN
To verify your Form W-8 BEN:
Go to Coinbase Taxes.
Select Settings.
In the Tax status section, select Verify your info.
Submit your information and select Continue.
Review the Confirm tax information page and select Agree. This will start the review process, which can take up to 48 hours.
If you enter any of your information incorrectly, fill out the verification form again after the review period ends.
Permanent residence address
Your permanent residence address is the address in the country where you claim to be a resident for income tax purposes. Coinbase uses this address to verify your tax residency.
P.O. boxes and "care of" (c/o) addresses are not accepted. If you have a U.S. mailing address but are not a U.S. tax resident, you’ll need to provide additional documentation, such as a foreign government ID and an explanation for your U.S. address.
Treaty benefits
If your country of tax residency has an income tax treaty with the United States, you may qualify for reduced withholding rates on certain U.S.-sourced income. The standard withholding rate for non-U.S. persons is 30%, but treaty benefits can reduce this rate (sometimes to 0%) depending on your country and income type.
To claim treaty benefits, you must have:
A country of permanent residence with an active U.S. tax treaty (see the IRS U.S. Tax Treaties A–Z list).
A Tax Identification Number (TIN), either a U.S. TIN or a Foreign TIN issued by your country of tax residency
A treaty article and withholding rate must apply to your specific income type.
When completing Form W-8 BEN on Coinbase, you’ll be prompted to provide your foreign TIN. If you choose to do so, select the applicable treaty article and rate.
For more information, visit the IRS Tax treaties page. Tax treaty eligibility and applicable rates vary by country and income type. Consult a qualified tax professional for guidance specific to your situation.
Substantial presence test
If your Coinbase profile shows U.S. connections (for example, a U.S. address or phone number), we may ask for additional information to verify your non-U.S. tax residency. One relevant factor is the IRS Substantial Presence Test (SPT).
The SPT determines whether a non-U.S. citizen qualifies as a U.S. tax resident based on the number of days physically present in the United States. You meet the SPT if:
You were present in the U.S. for at least 31 days during the current year, and
Your weighted U.S. day total across the past three years equals 183 days or more.
The weighted calculation is: (current year days × 1) + (prior year days × 1/3) + (second prior year days × 1/6)., For full details, visit the IRS Substantial Presence Test page.
If you meet the SPT, you’re considered a U.S. tax resident.
Individuals exempt from the SPT day count include:
Students on F, J, M, or Q visas
Teachers and trainees on J or Q visas
Foreign government officials and international organization employees on A or G visas (excluding A-3 or G-5 visa holders)
Qualifying spouses and dependent children of the above
For the full list of exempt categories, visit the IRS Substantial presence test page. Coinbase doesn’t make individual exemption determinations. If you believe an exemption may apply to your situation, speak with a qualified tax professional.
Closer connection exception
Even if you meet the Substantial presence test, you may still qualify as a non-U.S. tax resident if you can demonstrate a closer connection to a foreign country than to the U.S. To qualify, you must have:
Been present in the U.S. for fewer than 183 days during the current year
Maintained a tax home in a foreign country for the entire year
Stronger personal and economic ties to that country than to the U.S. such as (Example: family, property, bank accounts, or business activity).
You can’t claim this exemption if you took steps during the year to become a U.S. lawful permanent resident. For full IRS guidance, visit the IRS Closer connection exception page.
Eligibility depends on individual circumstances. Consult a qualified tax professional before claiming this exemption.
IRS Form W-9
If you’re a U.S. tax resident, Form W-9 is used to certify your Taxpayer Identification Number (TIN) or Social Security Number (SSN), name, address, and exemption from backup withholding.
You’re considered a U.S. person for tax purposes if any of the following apply:
You are a U.S. citizen (regardless of where you currently reside).
You are a lawful permanent resident (green card holder) at any point during the tax year.
You meet the Substantial Presence Test.
If none of the above apply to you, you are generally considered a non-U.S. person.
For more information, visit the IRS pages on Classification of Taxpayers for U.S. Tax Purposes, Substantial presence test, and Closer connection exception.
IRS Form W-8 ECI
Coinbase currently does not support W-8 ECI on the Coinbase retail platform.
Blocked from completing Form W-8 BEN
If your Coinbase account has a U.S. nationality on record, such as a previously self-attested U.S. citizenship or a U.S. passport, you may be blocked from completing Form W-8 BEN.
If your circumstances have changed, for example if you have renounced U.S. citizenship or your previously recorded nationality was entered in error, you may be able to resolve this by contacting support.
There are two paths depending on your situation:
Incorrect or outdated nationality on record: A manual review process is required. Contact us to request an override so you can submit your tax documentation correctly.
U.S. passport on record: This can be resolved by providing documentary evidence of your non-U.S. tax status. Contact us to submit the relevant documents.
Should your circumstances shift, contact us.
This article is for informational purposes only and does not constitute legal, tax, or financial advice. Coinbase does not provide tax advice. Consult a qualified tax professional for guidance specific to your situation.
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