W-8 Forms

Form W-8 is a U.S. Internal Revenue Service (IRS) form required for any payment made to or on behalf of a non-U.S. individual or organization.  There are five different types of Form W-8 and it is the responsibility of the foreign individual or organization to determine which form applies to their situation.  A brief description of each form type is provided below.  For detailed information and instructions on completing each form, please consult the official IRS instructions and instructional videos provided.     

The W-8 is requested by the U.S. company or institution that you are eligible to work with before you receive income from U.S. sources, such as service payments, royalties or licensing fees.  Once submitted, the form is valid for up to three (3) calendar years, unless your circumstances change and a new form is required.  

Informational Videos: 
W-9 vs W-8
IRS Form W-8. Which one do I need? 

W-8BEN Certificate of Foreign Status of Beneficial Owner for U.S. Withholding and Reporting-Individuals is used by individuals who are not U.S. Citizens or residents to:  

  • certify that they are not U.S. residents for tax purposes.
  • claim benefits under an income tax treaty, if applicable.  A U.S. tax identification number (TIN or SSN) is required for exemption from tax withholding.
  • ensure the correct amount of U.S. tax withholding is applied on income like U.S. source, income, services, permission fees or royalties, etc.  The non-resident IRS federal tax withholding rate is 30%.

Important Note: 

  • Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services for a Nonresident Alien Individual with a TIN is required by non-U.S. individuals (nonresident aliens) who are providing independent personal services (e.g., freelance, consulting, artists, honorarium, or other work) inside the U.S. and wish to claim an exemption from U.S. tax withholding on their compensation. 
  • A tax treaty reduction or exemption will ONLY be applied by Wesleyan with a properly generated and signed form on file in Sprintax Calculus.  

Instructional Videos: 
What is the W-8BEN Form? 
IRS Form W-8BEN: A Guide for Non-U.S. Taxpayers 
How to Complete Form W-8BEN
Summary of Form W-8BEN
How to complete Form W-9 or W-8BEN for a Foreign Owned Single Member, LLC 
IRS Form 8233 walk-through (Tax Withholding Exemption for Nonresident Aliens)

W-8BEN-E Certificate of Status of Beneficial Owner for U.S. Tax Withholding and Reporting-Entities is used by corporations, partnerships, trusts, nonprofits, and other organizations who are not incorporated or organized in the U.S. to: 

  • certify that they are not U.S. persons.
  • claim beneficial ownership of the income they are receiving.
  • claim a reduced rate of, or exemption from, U.S. withholding tax under an applicable tax treaty. 
  • identify their FATCA status (Foreign Account Tax Compliance Act).

Form W-8 is required when: 

  • a foreign entity receives U.S.-source income (e.g. interest, dividends, royalties, or other payments. 
  • The U.S. payer (withholding agent) needs documentation to apply the correct withholding tax rate.
  • The foreign entity needs to comply with FATCA reporting rules. 

Instructional Videos: 
How to complete Form W-8BEN-E for a Foreign Corporation
How to complete Form W-8BEN-E for Business Entities
What is FATCA W-8BEN-E form?


W-8ECI Certificate of Foreign Person's Claim That Income is Effectively Connected With the Conduct of a Trade or Business in the U.S. is used by non-U.S. individuals or entities (foreign persons) who:

  • receive income from U.S. sources.
  • And can prove that the income is "effectively connected" with an active trade or business in the U.S.

By submitting Form W-8ECI to a U.S. withholding agent, the foreign person:

  • Certifies that the U.S. income is effectively connected with their U.S. trade or business.
  • Requests that no withholding tax be applied to that income.
  • Instead, they agree to report the income and pay tax on it by filing a U.S. tax return (typically Form 1120-F for corporations or Form 1040-NR for individuals). 

Important Notes:

  • The Form W-8ECI must include a U.S. Taxpayer Identification Number (TIN).
  • It is valid for as long as the information remains accurate, but must be updated if anything changes.
  • Submitting Form W-8ECI means the IRS expects you to file a U.S. tax return to report that income.
Instructional Video: 
When does a person or company need IRS Form W-8ECI?
 

W-8EXP Certificate of Foreign Government or Other Foreign Organization for U.S. Tax Withholding and Reporting is used by certain non-U.S. entities that may qualify for exemption from U.S. tax withholding, including:

  • foreign governments.
  • international organizations.
  • foreign central banks of issue.
  • foreign tax-exempt organizations.
  • foreign private foundations.

to:

  • claim exemptions from U.S. withholding tax on certain types of U.S.-source income.
  • certify their tax-exempt status under U.S. tax rules (such as Section 501(c) for nonprofits) or under an income tax treaty.

Key Requirements:

  • Must provide the entity's foreign tax identification number.
  • U.S. Employer Identification Number (EIN) is often required.
  • Must check the appropriate exemption category and attach supporting documentation, if necessary. 
  • The entity must claim exemption under IRS code 115(2), 501(c), 892, 895, 94 1443(b), otherwise a W-8BEN or W-8ECI must be submitted.
W-8IMY Certificate of Foreign Intermediary, Foreign-Flow-Through Entity, or Certain U.S. Branches for U.S. Tax Withholding and Reporting is used by non-U.S. intermediaries or flow-through entities that receive U.S.-source income on behalf of other.  This includes:
  • foreign financial institutions (FFIs)
  • foreign partnerships
  • foreign trusts
  • non-U.S. branches of U.S. entities
  • qualified intermediaries (QIs)
  • withholding foreign partnerships (WPs) or Withholding Foreign Trusts (WTs)
to:
  • certify that the entity is not the beneficial owner of the income
  • document that it is acting as an intermediary, flow-through, or withholding agent
  • provide the necessary documentation and withholding information for the actual beneficial owners of the income

Key Characteristics:

  • Form W-8IMY does not stand alone.  It's usually submitted with supplemental documentation, such as a withholding statement and copies of other W-8 or W-9 forms from underlying beneficial owners.
  • Identifies the entity's FATCA status, such as whether it's a Qualified Intermediary or Nonparticipating FFI.
  • May involve complex reporting and compliance obligations.

Instructional Video:
Comprehending Form W-8IMY