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As this form is complex we strongly suggest that you read the instructions for the completion of the form available for free on Additionally you should consult your local tax advisor. Question 5 requests the FATCA classification of the filer. The classification indicated determines which one of the Parts IV through XXVIII must be completed. For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. Persons should use Form W-8BEN. U.S. persons file Forms W-9, W-4, and others.

Form W-8BEN is a tax form that non-US citizens and business entities use to verify their country of residence for tax purposes. If a foreign individual or business doesn’t use Form W-8BEN, they risk a full tax withholding of 30% on their income. If you are not a U.S. citizen, United States tax law requires that 30 percent be withheld of any regular payment made to individuals who reside elsewhere. Exceptions may be granted, however, for individuals who reside in countries that have tax treaties with the United States and who submit a completed W-8BEN tax form. If your country has a tax treaty with the U.S. and you provide us with a completed W-8BEN tax form, you will be taxed according to the requirements of that treaty. If there is no treaty, 30 percent of your U.S earnings will be withheld. A W-8 form is a grouping of tax forms specifically for non-resident aliens and foreign businesses who have either worked in or earned income in the US.

Part I: Identification Of Beneficial Owner

In Part II you must certify your country of tax residence or incorporation in order to claim tax treaty benefits. Gather more information needed to claim entitlement to a reduced rate of withholding pursuant to an income tax treaty. For the purposes of W-8BEN, this is your tax home, which is where you reside for income tax purposes. It should be a permanent residence address and not a P.O. Part II of Form W-8EXP requests the basis for a reduction in or exemption from withholding tax. Payees to claim status under U.S. law as tax-exempt organizations. Payees to attach a determination letter from the IRS or a determination of U.S. counsel as the basis for exemption from withholding.

• Towards the end of the three-year period you will receive an email request to resubmit your W-8BEN form.
• But by breaking it down piece by piece and gaining a greater understanding of what the forms are actually for, managing them gets simpler.
• A taxpayer may have the opportunity to reduce this fixed tax rate by filing Form W8BEN if his/her country of residence has an existing Income Tax Treaty negotiated with the United States.
• Your business doesn’t have an office or branch in the U.S.
• Your mailing address, if different than your permanent residence address.
• If you are a beneficial owner claiming that income is effectively connected with the conduct of trade or business within the U.S. , use Form W-8ECI instead.

If an income tax treaty exists, your US client will still collect the tax, but at a reduced rate. The payors of the income to foreign individuals or entities, or the US withholding agents, are required to withhold the tax from all income paid to them. This tax must be withheld at the source of income before any payment can be made to the foreign person. This type of non-resident tax is withheld by the source of the income, or payor. The payor, also referred to as the withholding agent, has the responsibility of deducting and withholding that tax from your income and paying it to the Internal Revenue Service . If the withholding agent fails to meet this requirement, they may be held personally liable to pay the tax owed by you. This is the reason that these agents take every precaution to ensure that their obligation is met.

General Instructions

If you are a foreign individual who is the single owner of a disregarded entity that is not claiming treaty benefits as a hybrid entity, with respect to a payment, you should complete this form with your name and information. If the account to which a payment is made or credited is in the name of the disregarded entity, you should inform the withholding agent of this fact. This may be done by including the name and account number of the disregarded entity on line 7 of the form. However, if the disregarded entity is claiming treaty benefits as a hybrid entity, it should complete Form W-8BEN-E instead of this Form W-8BEN.

S corporations must not enter an exempt payee code because they are exempt only for sales of non-covered securities acquired prior to 2012. You must enter one of the following on this line; do not leave this line blank. The partner’s share of a partnership’s effectively connected income.

The Evolving Role Of Tax

If you wish to provide a further explanation why you are not required to provide an FTIN on line 6a, you may do so in the margins of this form or on a separate statement attached to this form. According to an introduction to the instructions, the IRS has revised both the instructions and the form to expand the Exemptions box on the front of the form to include entry for the Exempt payee code and Exemption from FATCA Reporting Code . Also, the IRS has expanded the Certification section in Part II to include certification of an exemption from FATCA reporting. Since you perform a service for a US client, you must fill out the W8 form. However, since you perform such a service remotely, you are not eligible to pay the withholding tax.

For example, a Form W-8BEN signed on September 30, 2015, remains valid through December 31, 2018. This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441. A payment is considered to have been made whether it is made directly to the beneficial owner or to another person, such as an intermediary, agent, or partnership, for the benefit of the beneficial owner.

Financial Services

Form W-8BEN must be signed and dated by the individual earning the income in question, or by an authorized agent as evidenced by a completed power of attorney form. IRS Form 2848, Power of Attorney, is sufficient to fulfill this purpose. You still may need to submit Form W-8BEN to claim an exception from any US information reporting and the back-up withholding for these types of US source income. Form W-8ECI must be signed and dated by the beneficial owner of the income or authorized representative or agent having legal capacity to sign for the person identified on line 1. Effectively connected income, after allowable deductions, is taxed at graduated rates applicable to U.S. citizens and residents rather that at the 30% rate. You must report this income on your annual U.S. income tax return. If you are a beneficial owner who is receiving compensation for personal services performed in the United States, use Form 8233 or W-4 instead.

Instead, you should submit the completed form to the party that requests it. Typically, this is the person or group from whom you received payment. The tax form should be completed before the first payment is made; otherwise, the withholding agent may have to withhold the full 30% that is normally withheld under U.S. tax law. Payees to certify their legal and tax status to help U.S. payers determine the correct amount to withhold.

When And How Should We Collect These Tax Forms?

Thus, a student or researcher may claim the exemption even if he or she no longer has a permanent address in the other treaty country after entry into the United States. If this is the case, you can provide a U.S. address on line 3 and still be eligible w 8 form purpose for the exemption if all other conditions required by the tax treaty are met. You must also identify on line 9 the tax treaty country of which you were a resident at the time of, or immediately prior to, your entry into the United States.

The beneficial owner is claiming treaty benefits for U.S. source dividends received from a foreign corporation or interest from a U.S. trade or business of a foreign corporation and meets qualified resident status. Do not send Form W-8BEN to the IRS, and do not file it with a tax return.

U.S. payers must therefore retain the tax owed from their payments to non-U.S. Due to the complexity of the W-8 form, many who are required to fill it out work with a professional, such as an income tax preparation service, to do so.

As explained,the US entity you are doing business with is entirely responsible for assessing whether you are eligible to pay the withholding tax or not.The US entity will use its own CPA to define your status. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN.

The W 8 Form: Who Its For And What It Does

Payee should receive $70,000 ($100,000 less 30 percent withholding). If, however, the U.S payer has a Form W-8 certifying that the non-U.S. Payee is exempt as a government or charity, the payee should receive the full $100,000. The W8-BEN form, after being signed by an NRA, should be kept on file in the Office of International Taxation.

The US has tax treaties with countries like Canada and the UK. Your business doesn’t have an office or branch in the U.S.

A US taxpayer is not required to complete any of the forms found in the W8 series. They instead must complete Form W-9 in order to avoid having to pay any type of mandatory withholding tax. Foreign individuals who are earning a US income will generally be required to complete Form W-8BEN but there are other forms in the series, W-8BEN-E, W-8ECI, W-8-EXP and W-8IMY. These forms may be necessary based on the circumstance of the payee, such as if they are an individual or an entity. Add any special rates and conditions, if applicable to your case. If you are claiming the provisions, state the article and paragraph of the treaty identified on the lines above to claim a % rate of withholding and specify the type of income.

Author: Donna Fuscaldo