TSS - What is a W-8?

What is a W-8?

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First Published  :Wed Apr 01 16:02:50 GMT 2015
Last Modified  :Wed Nov 25 13:31:03 GMT 2015
Last Published  :Wed Nov 25 13:31:03 GMT 2015
Summary :  Detailed information about IRS form W-8

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Primary Information

    A W-8 form for all foreign aliens/entities is needed for all payments. There are four types of W-8 forms.  The foreign alien/entity will need to determine the type of form that applies to them.

    The brief description of each form is listed below.  Please refer to the links for specific details/instructions about each W-8.


    W-8BEN-E or W-8BEN
    Used primarily by entities and individuals to claim foreign status or treaty benefits.  It is also used by an individual to claim treaty benefits for royalty/passive income.
         - A U.S. tax identification number is required for exemption from tax withholding
         - All fields in line 10 must be completed to claim exemption on Royalty payments.
         - Entities or individuals not eligible for the other W-8 forms should use the W-8BEN-E for entities               or W-8BEN for individuals.

    W-8ECI
    Used primarily by the payee or beneficial owner indicting that all the income listed on the form is effectively connected with the conduct of a trade or business within the United States.
         - The type of income must be identified on Line 9 of the form to qualify for exemption.  If it is not
            listed we are required to obtain from the entity a different type of W-8 form.
         - A U.S. tax identification number is required for exemption from tax withholding.

    W-8EXP
    Used by the following entities to claim exemption from tax withholding, foreign governments, foreign tax exempt organization, foreign private foundation, government of a U.S. possession, or foreign central bank of issue.
         - The entity must be claiming exemption under IRS code 115(2), 501(c), 892, 895 or 1443(b).  
           Otherwise, they need to file a W-8BEN or W-8ECI.


    W-8IMY
    Used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow through entity.
         - Copies of appropriate withholding certificates
         - Documentary evidence and withholding statements must be attached to the W-8IMY.




     

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