A W-8BEN form is a tax document used to certify that your country of residence for tax purposes is outside of the United States. 3) You are claiming a reduced withholding tax rate because you’re a resident of a foreign country with which the U.S. has an income tax treaty.

How do foreigners fill out W 8BEN form?

How Do I Fill Out Form W-8BEN?

  1. Line 1: Enter your name.
  2. Line 2: Enter your citizenship.
  3. Line 3: Enter your mailing address.
  4. Line 5: Enter your U.S. taxpayer identification number.
  5. Line 6: Enter your foreign tax identifying number.
  6. Line 8: Enter your date of birth.

How do I get a non US TIN number?

To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual.

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

If you are a non-US person that does business in the US, Form W-8BEN will establish your foreign status and allow you to claim tax exemption, or reduced tax rates, on US-sourced income. The US has an income tax treaty in place and FORM W-8BEN will establish your eligibility of treaty benefits. The purpose of the form is to establish: 1.

How does Form W-8 work for non US authors?

When you complete your tax information, you are certifying that you are not a US person. The Form W-8BEN or Form W-8BEN-E form will determine the appropriate withholding tax rate that will be applied to your sales to US customers, if any (see Royalty Withholding Tax below).

What is the permanent residence address on form W-8BEN?

Your permanent residence address is the address in the country where you claim to be a resident for purposes of that country’s income tax. If you are completing Form W-8BEN to claim a reduced rate of withholding under an income tax treaty, you must determine your residency in the manner required by the treaty.

Do you have to file a W-8BEN if you are a sole proprietor?

A foreign individual or sole proprietor receiving US income do not need to declare their status but will need to file a W-8BEN form. It is important to consult your tax advisor as to what status applies to you. This will prevent any misunderstandings with the IRS.