IRS - Form W-8BEN

Form W 8BEN is an IRS form that is made for foreign entities. Therefore, both individuals and companies from foreign countries are required to provide residency information for the purpose of tax so as to certify if they are qualified for lower tax withholding. Once filled, IRS Form W-8 BEN is not submitted to the IRS. Instead, the entity that fills it submits it to withholding reps or payers. An entity that defaults payment will be subject to a 30% withholding rate.

Who Needs to Fill Out a W-8

For a business owner or individual without an American residency or citizenship, it is required by law for them to complete the W-8 Tax Form. Such types of entities usually get paid wages or make their revenue within the United States. The amount of tax to be paid by such individuals is 30% of some types of revenue. However, people with residency or citizenship do not file IRS W-8BEN.

Fill & Sign IRS Form W-8BEN

W-8BEN Form Purpose

As an IRS document, the W-8 form’s purpose is to allow foreign entities to pay their fair share of taxes in America. Some of the income that should be included in a W-8BEN fillable are:

  • Rent revenue;
  • Interest;
  • Royalties;
  • Annuities.

W-8 form instructions show that some individuals or businesses can pay less than 30% tax if their country of residence has a treaty with America.

How to Fill Out W-8 Form

Knowing how to fill out a W-8BEN Form is sometimes complicated. Yet, you will need to have all the information associated with the following.

  • Your personal details.
  • Complete information about your country of origin.
  • The type of income you make within the United States.

In general, there are several types of W-8BEN Form PDF. These documents are:

  • W-8BEN;
  • W-8ECI;
  • W-8IMY;
  • W-8EXP;
  • W-8BEN-E.

The type of form you use depends on whether you are filing as an organization or as an individual. It also depends on the type of income you receive. Each form is valid for the year it is signed and three proceeding years. Therefore, you will need a W-8 form in 2021 for the year 2021 and beyond.

For those that are still wondering how to fill out W-8BEN, once they fill it in January 2022, it will be valid for use until December 2025. Due to the complex nature of form W-8BEN instructions, it is always a good idea to get a professional to handle filing it.

You can still decide to fill out this document yourself. However, it is essential you go through the W-8 BEN e instructions before you begin. You can find these instructions on the IRS website. It is worth knowing that this tax document has three parts, which are Part I, Part II, and Part III.

Part I

Part I deals with the identity of the person filing the document. Also, it is composed of 8 lines. Here, you will provide:

  • Your name;
  • Country of origin;
  • Address;
  • Foreign TIN;
  • American TIN;
  • Date of birth.

There are sections of Part I that require you to double-check the W-8 BEN e form instructions before providing information.

Part II

This section deals with tax benefits for people from countries that have treaties with America. It consists of two lines. Therefore, you are going to provide:

  • The country you are claiming benefit from;
  • Information about research and students.

The withholding rate given to you is mostly predetermined under the treaty your country of origin has with America.

Part III

The last part of this tax document is the certification section. This part only has one line. As such, you are expected to write your name, affix your signature, write down the date, and tick the certification box. Doing this binds you in cases of perjury.

Fill & Sign IRS Form W-8BEN

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