IRS W-8 Forms are a grouping of tax forms specifically for non-resident aliens and foreign businesses who have either worked in or earned income in the US. It declares the applicant’s status as a non-resident alien or foreign national and informs financial companies that they will be taxed differently than a resident. They are only for foreign people and/or entities without citizenship or residency—a US resident or resident alien will never be required to fill out a W-8 tax form. The brief description of each form is listed below. Please refer to the instruction forms for specific details about each W-8 form.
W-8BEN is used by individuals to claim foreign status or treaty benefits. It is also used by an individual to claim treaty benefits for royalty/passive income.
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A U.S. tax identification number is required for exemption from tax withholding.
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All fields in line 10 must be completed to claim exemption on Royalty payments.
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Instructions: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf
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W-8BEN-E is used by foreign entities to claim foreign status, treaty benefits, or to document chapter 4 status.
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A U.S. tax identification number is required for exemption from tax withholding.
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Instructions: http://www.irs.gov/pub/irs-pdf/iw8bene.pdf
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W-8ECI is 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.
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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.
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A U.S. tax identification number is required for exemption from tax withholding.
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Instructions: http://www.irs.gov/pub/irs-pdf/iw8eci.pdf
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W-8EXP is used by the following entities to claim exemption from tax withholding, foreign governments, foreign tax-exempt organization, foreign private foundations, the government of U.S. possession, or foreign central bank of issue.
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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.
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Instructions: http://www.irs.gov/pub/irs-pdf/iw8exp.pdf
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W-8IMY is used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow-through entity.
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Copies of appropriate withholding certificates, doc.
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Documentary evidence and withholding statements must be attached to the W-8IMY.
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Instructions: http://www.irs.gov/pub/irs-pdf/iw8imy.pdf
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Important note: Sydecar does not have the legal authority to advise which W-8 Form is most appropriate. Please contact your tax advisor with any questions or concerns.