global Tax Important Instructions for IRS Form W-8 December 26, 2014 Disclaimer This post was published on over 2 years ago. Tax laws and regulations may have changed since then. Please consult with your advisor or check our most recent updates before making decisions based on this information. IRS releases specific instructions for form W-8BEN-E for companies in business with foreign entities. Companies paying foreign vendors for services or products, are undoubtedly familiar with form W-8, but be aware that the new Form W-8BEN-E replaces the previous W-8BEN form for both foreign individuals and entities. As of January 1, 2015, Form W-8BEN will be used for foreign individuals only, while the new Form W-8BEN-E will be used for foreign entities. In addition to claiming treaty benefits on interest, dividends, and royalties, the new form is also the place to claim any payments made to a foreign vendor that are fixed and determinable, annual and periodical. Requirements of form W-8BEN-E The new form requires your entity to fill in: Identifying information What type of entity it is FATCA status –typically active or passive NFFE (non-financial foreign entity) Additional areas depending on FATCA status A properly filled out W-8BEN-E form is important since incorrect submission will result in the 30% withholding requirement. For a more detailed description of the new form read our article, “Instructions for Foreign Vendors on how to properly fill Out Form W-8”.
