How to Request Form W-8BEN online with TaxBandits?
What is Required to complete Form W-8BEN for 2023?
- 1. Beneficial Owner Details: Name, Country, Address, US SSN/ITIN (if required), Foreign Tax Identifying Number, Reference number, Date of birth
2. The claim of Tax Treaty Benefits Details
- Beneficial owner resident country (an Income tax treaty between the US and Beneficial owner country)
- The percentage rate of withholding
- 3. Sign the Form
It's easy to complete your Form W-8BEN with TaxBandits.
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Frequently Asked Questions on W 8Ben Online
What is a W-8BEN Form?
The W-8BEN Form, Certificate of Foreign Status of Beneficial Owner for the United States Tax Withholding & Reporting (Individuals), is an IRS tax form, similar to the
The W-8BEN Form must be filled out by non-US residents, beneficial owners who are receiving payments from individuals or companies in the United States.
Who should complete a W-8BEN form?
The Form W-8BEN must be filled out by the beneficial owner(s) who are not US citizens or residents for tax purposes.
When should I complete Form W-8BEN?
This form is used by a non-United States person who is a “beneficial owner” in order to avoid U.S federal income tax backup withholding on payments made in connection with the Offer. The Form W-8BEN is only filled out upon request, this request is always made prior to the payment.
How do I Fill out Form W-8BEN?
The following are the steps to complete the Form W-8BEN. The beneficial owner(s) should complete these steps on the Form W-8BEN.
- Step 1: Enter the recipient’s name and email address, then invite the recipient to fill out Form W-8BEN through TaxBandits Secured Online Portal
- Step 2: The recipient will fill out the W-8BEN Form information
- Step 3: Recipient can e-Sign the form
- Step 4: You can then Download and Print the Form for your reference
What types of income are subject to 30% withholding and must be reported on Form W-8BEN?
A foreign individual will be subject to the 30% tax rate on any income they receive from the following US sources:
- Interest – this includes certain original issue discount (OID)
- Rental income
- Compensation for, or in expectation of, services performed
- Substitute payments in a securities lending transaction
- Other fixed or determinable annual or periodical gains – or FDAP income- profits, or income
This mandatory withholding tax is applied to the gross earnings of the foreign individual or entity.
What types of income are subject to 30% withholding, but not reported on the Form W-8BEN?
There are some types of income earned in the US that will not be subjected to this 30% withholding tax. These income types include,
- Broker proceeds
- Short-term (183 days or less) OID
- Bank deposit interest
- Foreign source interest, dividends, rents, or royalties
- Proceeds from a wager placed by a nonresident alien individual in the games of blackjack, baccarat, craps, roulette, or big-6 wheel
You may still need to submit Form W-8BEN to claim an exception from any US information reporting and the back-up withholding for these types of US source income.