In this article:
Overview
To meet the requirements of the Canada Revenue Agency (CRA) and the Internal Revenue Service (IRS), we ask you to sign tax forms like the W-8BEN or W-9 and confirm your tax residency. We use this information to confirm your tax status for our records.
Continue below for details about W-forms and self-certification of tax residency.
Understanding W-forms
Depending on your US person status, you may need to sign a W-8BEN, W-9, or W-8BEN-E form for certain types of accounts.
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W-8BEN and W-8BEN-E forms certify that you (or your company) aren't a US person for tax purposes. This means you aren't subject to the IRS reporting requirements that apply to US persons, but US-sourced income in your account is still subject to US withholding tax.
- All clients who aren't US persons have to sign a W-8BEN or W-8BEN-E to confirm this. These forms also allow Canadian residents to receive reduced withholding tax rates on US-sourced income.
- If you hold US-listed securities, including the US ETFs in most Wealthsimple portfolios, this reduction means you can keep more of your dividend returns.
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W-8BEN and W-8BEN-E forms expire at the end of the third calendar year after you sign them. We'll contact you to sign a new form when you're nearing the expiry date or if you need to update your information. This ensures you can continue to receive reduced withholding tax rates on US-sourced income in your account.
Note: If you're an individual client and we already have your valid Canadian government-issued photo ID on file, we may not prompt you to re-sign your original W-8BEN when it expires. In these situations, we can rely on your ID instead of a renewed W-8BEN to continue applying the reduced 15% withholding tax rate (instead of 30%) on eligible US-sourced income in your account.
If we don't have a valid ID on file, we'll prompt you to complete identity verification in the Wealthsimple app. Sending us your ID won't replace this step, and we can't send this prompt early or on request.
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W-9 forms certify that you're a US person for tax purposes. This includes US citizens and green card holders, even if you live in Canada.
- Canada and the US require this form under their tax information-sharing agreement.
- A completed and up-to-date W-9 form helps you avoid US backup withholding on US-sourced income in your account. Learn more about W-9 forms.
Self-certification of tax residency
Similar to information about US persons, we also have to collect information about any tax residencies our clients may hold outside of Canada and the US. We ask you for information about any tax residencies you may have and collect your tax number for each country that issues one.
Even if you don't have any other tax residency, all clients must fill out the Common Reporting Standard (CRS) form to open their accounts. While this form doesn't expire, please contact our support team if any changes are required. We can send you a new form to complete.
Frequently asked questions
Is the email from notifications@o.wealthsimple.com a legitimate email from Wealthsimple?
Yes, the email is legitimate. You received that email because, according to our records, the tax documents on file (for W-8BEN-E) for one or more of your businesses have expired and you need to provide a renewed version. We appreciate you being vigilant about your account information at Wealthsimple.
What's the difference between a W-8BEN-E form and a W-8BEN form?
Both the W-8BEN and W-8BEN-E forms are IRS-mandated forms designed for non-US persons to declare tax treaty claims and receive reduced withholding tax rates on US-sourced income. The main differences are:
- Purpose: The W-8BEN form is for individuals, while the W-8BEN-E form is for certain types of entities.
- Certification: The W-8BEN form certifies that the individual isn't a US person, while the W-8BEN-E form certifies that the entity isn't a US person and has no income connected to a trade or business in the United States.
- Signatory: The W-8BEN form is signed by the account owner, while the W-8BEN-E is signed by the authorized signatory of the account owner (the entity).
Why does my W-8BEN-E form expire?
The US government mandates a three-year validity period. According to the IRS rules, a Form W-8BEN-E will remain valid for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect.
Why do I have US-sourced income in my Wealthsimple Business account if Wealthsimple is a Canadian company?
Your business may have US-sourced income (dividends, interest) when your business has invested in securities listed on a US exchange. If you have a Business portfolio, it may include US-listed ETFs. This means your business may receive US-sourced dividends or interest.
I only have a Business chequing or Business Save account and no Business investing account or Business portfolio. Why do I still have to fill out the W-8BEN-E form?
In theory, your Business chequing or Business Save account won't receive any US-sourced income, so you're right that technically a W-8BEN-E form isn't required. However, since the W-8BEN-E form is entity-specific and not account-specific, we're required to collect and maintain the form when the entity is onboarded, regardless of the types and number of Business accounts the entity has.
I have one corporation with multiple Wealthsimple Business accounts. How many copies of the W-8BEN-E form do I need to submit?
The W-8BEN-E forms are tied to the entities. If you have one corporation, you only need to submit one W-8BEN-E form, regardless of how many accounts the corporation has with Wealthsimple. If you have multiple corporations, you'll need to submit one W-8BEN-E form for each of the corporations, regardless of how many accounts each corporation has with Wealthsimple.
What should I do if I'm unsure about filling out the W-8BEN-E form?
We included many tips and helpful links in the document. However, we recognize that it can be challenging to understand the IRS terminology. In addition to visiting the IRS W-8BEN-E official website for additional instructions, we recommend consulting with your business lawyer or accountant for guidance.
Can I close my Business account instead of renewing the W-8BEN-E form?
If your Business accounts have a $0 balance and you no longer need them open, you technically don't have to submit an updated W-8BEN-E form. Instead, you can close your accounts.
What happens if I don't provide an updated version of the W-8BEN-E form?
If you don't submit an updated W-8BEN-E for your entity before your current form expires, all investment accounts owned by the entity will no longer be eligible for the reduced 15% withholding tax rate on US-sourced income. The full 30% rate will apply instead. To avoid this, submit an updated W-8BEN-E as soon as we contact you.
How do I submit a new W-8BEN-E form?
Select the link in the email we sent you and fill out your full name and the email address associated with your Wealthsimple account to start renewing your W-8BEN-E via Docusign. The form is available in English and French.
To submit the form:
- Check I agree to use electronic records and signatures
- Select Continue
- Use the orange button on the left of the page to navigate all the mandatory fields in the documents
- Once you've filled out and signed the form, select Finish to submit the W-8BEN-E
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