Instructions for Form W-8BEN-E 10 2021 Internal Revenue Service

If you own the income with one or more other persons, the income will be treated by the withholding agent as owned by a foreign person that is a beneficial owner of a payment only if Form W-8BEN or W-8BEN-E (or other applicable document) is provided by each of the owners. An account will be treated as a U.S. account for chapter 4 purposes by an FFI requesting this form if any of the account holders is a specified U.S. person or a U.S.-owned foreign entity (unless the account is otherwise excepted from U.S. account status for chapter 4 purposes). For treaty purposes, a person is a resident https://www.bookstime.com/ of a treaty country if the person is a resident of that country under the terms of the treaty. A list of U.S. tax treaties is available at IRS.gov/Individuals/International-Taxpayers/Tax-Treaties. You must give Form W-8BEN to the withholding agent or payer if you are a nonresident alien who is the beneficial owner of an amount subject to withholding, or if you are an account holder of an FFI documenting yourself as a nonresident alien. If you are the single owner of a disregarded entity, you are considered the beneficial owner of income received by the disregarded entity.

For purposes of chapter 4, a nonresident alien individual who holds a joint account with a U.S. person will be considered a holder of a U.S. account for chapter 4 purposes.. If you own the income or account jointly with one or more other persons, the income or account will be treated by the withholding agent as owned by a foreign w8 forms definition person that is a beneficial owner of a payment only if Forms W-8BEN or W-8BEN-E are provided by all of the owners. If the withholding agent or financial institution receives a Form W-9 from any of the joint owners, however, the payment must be treated as made to a U.S. person and the account treated as a U.S. account.

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The term chapter 4 status means a person’s status as a U.S. person, specified U.S. person, foreign individual, participating FFI, deemed-compliant FFI, restricted distributor, exempt beneficial owner, nonparticipating FFI, territory financial institution, excepted NFFE, or passive NFFE. An account holder is generally the person listed or identified as the holder or owner of a financial account. For example, if a partnership is listed as the holder or owner of a financial account, then the partnership is the account holder, rather than the partners of the partnership. However, an account that is held by a disregarded entity (other than a disregarded entity treated as an FFI for chapter 4 purposes) is treated as held by the entity’s single owner. In addition to the requirements of chapter 3, chapter 4 requires withholding agents to identify the chapter 4 status of entities that are payees receiving withholdable payments. A withholding agent may request this Form W-8BEN-E to establish your chapter 4 status and avoid withholding at a 30% rate on such payments.

The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. Any certifications provided under an applicable IGA remain subject to the penalty of perjury statement and other certifications made in Part XXX. For the latest information about developments related to Form W-8BEN-E and its instructions, such as legislation enacted after they were published, go to IRS.gov/FormW8BENE. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. In this article, you’ll find out what is a W8, how to file it, different types, the difference between a W8 and W9 form, and more. Chapter 4 means chapter 4 of the Internal Revenue Code (Taxes to Enforce Reporting on Certain Foreign Accounts).

What is a W-8BEN Form?

In the case of amounts paid that do not constitute income, beneficial ownership is determined as if the payment were income. Residents or foreign entities to certify their foreign status and claim tax treaty benefits or exemptions with the United States Internal Revenue Service (IRS). These forms help to determine the applicable withholding tax rate on income generated from U.S. sources, such as interest, dividends, or royalties. The most common types of W-8 Forms include W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY. Form W-8BEN-E must be signed and dated by an authorized representative or officer of the beneficial owner, participating payee (for purposes of section 6050W), or account holder of an FFI requesting this form.

If you use Form W-8BEN to certify that you are a foreign person, a change of address to an address in the United States is a change in circumstances. Generally, a change of address within the same foreign country or to another foreign country is not a change in circumstances. However, if you use Form W-8BEN to claim treaty benefits, a move to the United States or outside the country where you have been claiming treaty benefits is a change in circumstances.