What it is:
How it works (Example):
Individuals from abroad who live in the United States frequently work as legal residents and invest in the capital markets. Such individuals are not subject to certain IRS regulations by virtue of their status. By submitting a W-8 form to an employer or brokerage house, a non-U.S. citizen may receive exemptions from normal income tax withholdings on payroll and portfolio income (for example, bond interest payments and stock dividends).