What is W-8BEN-E for?

W-8BEN-E (Certificate of Entities Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)) The W-8BEN-E is an IRS mandated form to collect correct Nonresident Alien (NRA) taxpayer information for entities for reporting purposes and to document their status for tax reporting purpose.

What is the difference between W-8BEN E and W 9?

The W-8BEN form is a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individual). Hence, U.S. persons do not complete W-8BEN. Instead, they use Form W-9, Request for Taxpayer Identification Number and Certification.

Why do I need to fill out Form W-8BEN?

Why Does the IRS Require Form W-8BEN? The Internal Revenue Service requires W-8BEN because foreign individuals are normally subject to a 30% tax withholding, but they may qualify for a reduced rate of taxation. W-8BEN helps to establish this eligibility, although other factors also play a role, such as type of income.

What do you need to know about the W-8BEN-E form?

All foreign (non-U.S.) businesses that are receiving payment from an American company must fill out the W-8BEN-E. The W-8BEN-E is used to prove that the company providing the services is indeed a foreign entity. The W-8BEN-E is a new form that came about thanks to the The Foreign Account Tax Compliance Act (FATCA).

What are the guidelines for completing the w-8imy?

In those cases, please refer to the Form W-8IMY. The following guidelines are provided for reference purposes and do not represent tax advice. Please consult with your tax or legal advisor should you need additional assistance in completing this Form. The Form W-8BEN-E should only be completed by a non-U.S. entity.

Do you have to provide a W-8BEN to the IRS?

These individuals must provide a completed W-8BEN form to their U.S. client in order to avoid paying tax to the IRS. Your country of origin has a tax treaty with the U.S. In this case, you avoid double taxation. You don’t pay tax on your U.S. income to the IRS. But you will pay tax on that income in your country of origin.

Do you need power of attorney to sign W-8BEN?

An authorized representative or officer must check the box to certify legal capacity to sign the form. If Form W- 8BEN -E is completed by an agent acting under a duly authorized power of attorney, the form must be accompanied by the power of attorney.