How to Complete the W-8BEN Form
For non-U.S residents who earned money from U.S based online affiliate programs, you will be asked to submit a W8 form. Don’t be frightened by this U.S government document. It is very easy to fill in the form. This post is to show you how. Continue Reading »
In general, scholarship or fellowship pay to a non-resident alien is subject to federal income tax withholding (14%). However, a non-resident alienwho qualifies to claim a tax treaty can avoid withholding by properly filling the W-8BEN package.
Properly filling the W-8BEN package implies that all required information is included and accurate, that the addemdum and additional documentation is also submitted, and that there are no scratches or corrections of any kind in the documents including liquid paper (IRS regulations). Please keep in mind that the W-8BEN package (form, addendum, and supporting documentation) MUST be submitted every calendar year. The W-8BEN package is only valid from January to December of the year it is submitted. Continue Reading »
Non-US entities (such as private Canadian companies with no US presence) who make money with US establishments are often requested to fill out a W-8BEN form in order to receive full payment.
By submitting W8 form, you confirm that your are non-US residents, therefore the US establishment does not need to withhold some 30% tax for your income.
