You may also need to file Form W-8BEN-E to request an exemption from the national information return on Form 1099 and a backup hold (at the section 3406 backup withholding rate) for certain types of income. This income includes: Sole proprietors and individuals are not permitted to complete Form W-8BEN-E. Instead, they must file Form W-8BEN to receive payments from U.S. companies. Form W-8BEN-E is also known as the Foreign Beneficial Ownership Status Certificate for U.S. withholding tax. This is an important document that allows a company operating outside the U.S. to apply for a U.S. income tax exemption. The W-8BEN electronic form is a tax document that allows foreign companies to be exempt from the 30% U.S.
withholding tax on U.S. withholding tax income. Although the sister document of Form W-8BEN is only used to confirm that you are not a U.S. resident and that you are subject to a 30% withholding tax, the W-8BEN electronic form is designed to help foreign companies apply for an exemption from these taxes. If you do not use this form to document a financial account described above, you can also provide the FTIN issued to you by your tax administration on line 9b for the use of contractual services (instead of providing a US TIN on line 8 if necessary). Leave this line blank. For the purpose of completing this form as a hybrid entity making a contractual claim (including an unconsidered entity), you will be treated as a beneficial owner and should be identified on line 1. Brianna Blaney began her career in Boston as a fintech writer for a large company. Later, she moved to digital media marketing on various financial platforms in San Francisco. She prides herself on redeveloping the logistics of successful content management strategies and implementing people-centered (not campaign-driven) techniques. In her spare time, she is a self-proclaimed cook, lives in the middle of the forest, and has a frequent traveler card for food for birds and dog bones.
The time it takes to complete and submit this form depends on the individual circumstances. The estimated average time is: recordings, 12 h, 40 min; Learning the law or form, 4 h, 17 min; Preparation and submission of the form, 8 hours, 16 min. Form W-8BEN-E must be signed and dated by an authorized representative or officer of the beneficial owner, participating beneficiary (as defined in Section 6050W) or account holder of an IFF requesting this form. You must check the box to confirm that you have the legal capacity to sign for the entity identified on line 1 that is the beneficial owner of the income. If Form W-8BEN-E is completed by an agent acting on the basis of a duly authorized power of attorney, the form must be accompanied by the power of attorney in an appropriate form or a copy thereof that expressly authorizes the agent to represent the principal in the preparation, execution and submission of the form. Form 2848, Declaration of Power of Attorney and Representative, can be used for this purpose. The agent, as well as the beneficial owner, beneficiary or account holder (if any), may be held liable for penalties imposed for an incorrect, incorrect or fraudulent form. By signing Form W-8BEN-E, the authorized representative, officer or representative of the Company also agrees to provide a new form within 30 days of any change in circumstances affecting the accuracy of the form. Do not submit Form W-8BEN-E to the IRS. Instead, give it to the person who asks you to. Typically, this is the person whose payment you receive that credits your account or a partnership that allocates income to you. An IFU may also ask you for this form to document the status of your account.
If you are a partnership, unaccounted entity, simple trust or settling trust that receives a payment for which contractual benefits are claimed by such an entity, you must select the Partnership, Entity Not Considered, Simple Trust or Settling Trust check box. In this case, you must also check the “Yes” box to indicate that you are a hybrid entity making a contractual claim. You can only check the “No” box if (1) you are an unconsidered partnership, simple trust or settling trust and use the form only for the purpose of documenting yourself as an IFF holder and the form is not associated with a deductible payment or a reportable amount, or (2) you use this form solely for the purpose of documenting your status as a participating beneficiary as defined in Section 6050W. In such cases, you do not need to fill in line 4, but you can check the “No” box when you finish line 4. .