Kronos Guide

Guide to Form W-8BEN for Kronos Prop Traders

What is it for?

As a prop trader with Kronos, you may be trading U.S. markets through our U.S.-based brokerage partners. The U.S. Internal Revenue Service (IRS) requires these brokers to withhold taxes on income paid to foreign persons.

Form W-8BEN is your official declaration that you are not a U.S. person. By submitting it, you ensure that your trading profits are not subject to incorrect U.S. tax withholding. This form certifies your foreign status to the U.S. broker.

Download and check the form below

fw8benDownload

Who is it for?

This form is for every non-U.S. individual who trades with Kronos.

  • You must use this form if you are a foreign individual.
  • You must NOT use this form if you are a U.S. citizen or other U.S. person (you would use Form W-9 instead).

How to Fill Out the Form

Let’s use the example of a new trader, João Silva from Brazil.

Part I: Identification of Beneficial Owner

This section is mandatory and identifies you.

  • Line 1: Name of individual who is the beneficial owner
    • Enter your full legal name: João Silva.
  • Line 2: Country of citizenship
    • Enter your country of citizenship: Brazil.
  • Line 3: Permanent residence address
    • This must be your physical address, not a P.O. box.
    • Street: Rua das Flores, 123, Apt 4B
    • City, province, postal code: Rio de Janeiro, RJ, 22010-060
    • Country: Brazil
  • Line 4: Mailing address
    • Leave this blank if it’s the same as your permanent address.
  • Line 5: U.S. taxpayer identification number (SSN or ITIN)
    • If you don’t have a U.S. tax number, leave this blank.
  • Line 6a: Foreign tax identifying number (FTIN)
    • Enter the tax ID number from your country of residence (e.g., Brazil’s CPF). João enters: 123.456.789-00.
  • Line 6b: Check if FTIN not legally required
    • Only check this if your home country doesn’t issue tax IDs. João leaves this unchecked.
  • Line 7: Reference number(s)
    • Kronos may ask you to enter your trader account number here for our records. If not, leave it blank.
  • Line 8: Date of birth (MM-DD-YYYY)
    • Enter your date of birth in the required MM-DD-YYYY format. João enters: 01-15-1985.

Part II: Claim of Tax Treaty Benefits

This section determines if you pay U.S. withholding tax. Follow the instructions based on your country of residence.

  • For Traders in Countries WITHOUT a U.S. Tax Treaty:
    • Some countries, like Brazil, do not have a tax treaty with the U.S. If your country is not on the list below, you must leave all of Part II blank.
  • For Traders in Countries WITH a U.S. Tax Treaty:
    • If your country is on the list below, you must complete this part to claim a 0% tax rate.
    • Line 9: Write your country of residence (e.g., United Kingdom).
    • Line 10: You must cite the specific treaty article that allows for a 0% tax rate on your income.
      • Specify a 0% rate of withholding on “Proprietary Trading Profits” or “Independent Personal Services”.
      • Example for a UK trader: “The beneficial owner is claiming the provisions of Article 14 of the treaty to claim a 0% rate of withholding on Independent Personal Services.”

Countries with U.S. Income Tax Treaties:

Armenia, Australia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malta, Mexico, Moldova, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan, Venezuela.

Disclaimer: The specific article number can vary between treaties. This guidance is for informational purposes only and does not constitute tax advice. Each trader should consult with a qualified U.S. tax professional individually if they require advice on this matter or to ensure their personal compliance.

Part III: Final Certification and Submission

This final section is mandatory.

  1. Read and Sign: Read the certification statements. By signing, you declare under penalties of perjury that the information is true and correct. Sign your name in the Signature of beneficial owner box.
  2. Print Name: Print your name clearly on the Print name of signer line.
  3. Date the Form: Enter the current date in MM-DD-YYYY format.
  4. Submit to Kronos: Submit the completed form to us. We will provide it to our U.S. partners. Remember to submit a new form within 30 days if any of your information changes.

We hope this guide helps facilitate filling out the W-8BEN form. If you have any questions, feel free to reach out to our support team.