Looking for a Form W-8ben Templates? Download it for free!

•

Claiming benefits under an income tax treaty, or

An item of income may be derived by either the entity

•

Submitting the form to a partnership that conducts a

receiving the item of income or by the interest holders in

trade or business in the United States.

the entity or, in certain circumstances, both. An item of

income paid to an entity is considered to be derived by

However, a U.S. TIN is not required to be shown in

the entity only if the entity is not fiscally transparent under

order to claim treaty benefits on the following items of

the laws of the entity’s jurisdiction with respect to the item

income:

of income. An item of income paid to an entity shall be

•

Dividends and interest from stocks and debt

considered to be derived by the interest holder in the

obligations that are actively traded;

entity only if:

•

Dividends from any redeemable security issued by an

•

The interest holder is not fiscally transparent in its

investment company registered under the Investment

jurisdiction with respect to the item of income, and

Company Act of 1940 (mutual fund);

•

The entity is considered to be fiscally transparent

•

Dividends, interest, or royalties from units of beneficial

under the laws of the interest holder’s jurisdiction with

interest in a unit investment trust that are (or were upon

respect to the item of income. An item of income paid

issuance) publicly offered and are registered with the

directly to a type of entity specifically identified in a treaty

SEC under the Securities Act of 1933; and

as a resident of a treaty jurisdiction is treated as derived

•

Income related to loans of any of the above securities.

by a resident of that treaty jurisdiction.

You may want to obtain and provide a U.S. TIN

If an entity is claiming treaty benefits on its own behalf,

TIP

on Form W-8BEN even though it is not required.

it should complete Form W-8BEN. If an interest holder in

A Form W-8BEN containing a U.S. TIN remains

an entity that is considered fiscally transparent in the

valid for as long as your status and the information

interest holder’s jurisdiction is claiming a treaty benefit,

relevant to the certifications you make on the form remain

the interest holder should complete Form W-8BEN on its

unchanged provided at least one payment is reported to

own behalf and the fiscally transparent entity should

you annually on Form 1042-S.

associate the interest holder’s Form W-8BEN with a

Form W-8IMY completed by the entity.

Line 7. If your country of residence for tax purposes has

issued you a tax identifying number, you must enter it

An income tax treaty may not apply to reduce the

here. For example, if you are a resident of Canada, enter

amount of any tax on an item of income received

your Social Insurance Number. You need not enter this

by an entity that is treated as a domestic

CAUTION

number if you are a direct holder of a qualifying

corporation for U.S. tax purposes. Therefore, neither the

intermediary (or a direct partner, beneficiary, or owner of

domestic corporation nor its shareholders are entitled to

a withholding foreign partnership or trust) that reports

the benefits of a reduction of U.S. income tax on an item

direct account holder (or partnership, beneficiary, or

of income received from U.S. sources by the corporation.

owner) information on a pooled basis.

To determine whether an entity meets the limitation on

Line 8. This line may be used by the filer of Form

benefits provisions of a treaty, you must consult the

W-8BEN or by the withholding agent to whom it is

specific provisions or articles under the treaties. Income

provided to include any referencing information that is

tax treaties are available on the IRS website at

useful to the withholding agent in carrying out its

gov.

obligations. For example, withholding agents who are

required to associate the Form W-8BEN with a particular

If you are an entity that derives the income as a

Form W-8IMY may want to use line 8 for a referencing

TIP

resident of a treaty country, you may check this

number or code that will make the association clear. A

box if the applicable income tax treaty does not

beneficial owner may use line 8 to include the number of

contain a “limitation on benefits” provision.

the account for which he or she is providing the form. A

foreign single owner of a disregarded entity may use

Line 9d. If you are a foreign corporation claiming treaty

line 8 to inform the withholding agent that the account to

benefits under an income tax treaty that entered into

which a payment is made or credited is in the name of

force before January 1, 1987 (and has not been

the disregarded entity (see instructions for line 1 on page

renegotiated) on (a) U.S. source dividends paid to you by

4).

another foreign corporation or (b) U.S. source interest

paid to you by a U.S. trade or business of another foreign

Part II

corporation, you must generally be a “qualified resident”

of a treaty country. See section 884 for the definition of

Line 9a. Enter the country where you claim to be a

interest paid by a U.S. trade or business of a foreign

resident for income tax treaty purposes. For treaty

corporation (“branch interest”) and other applicable rules.

purposes, a person is a resident of a treaty country if the

person is a resident of that country under the terms of the

In general, a foreign corporation is a qualified resident

treaty.

of a country if any of the following apply.

•

It meets a 50% ownership and base erosion test.

Line 9b. If you are claiming benefits under an income

•

It is primarily and regularly traded on an established

tax treaty, you must have a U.S. TIN unless one of the

securities market in its country of residence or the United

exceptions listed in the line 6 instructions above applies.

States.

Line 9c. An entity (but not an individual) that is claiming

•

It carries on an active trade or business in its country

a reduced rate of withholding under an income tax treaty

of residence.

•

must represent that it:

It gets a ruling from the IRS that it is a qualified

•

Derives the item of income for which the treaty benefit

resident.

is claimed, and

•

Meets the limitation on benefits provisions contained

See Regulations section 1.884-5 for the requirements

in the treaty, if any.

that must be met to satisfy each of these tests.

-5-

Instructions For Form W-8ben Draft - Certificate Of Foreign Status Of Beneficial Owner For United States Tax Withholding - 2008 Page 6

Related Articles

Related forms

Related Categories