What is Form W-8 and does it apply to me?
IRS W-8 Forms are a group 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. These forms are only for foreign people and entities without citizenship or residency. A brief description of each form is listed below. Please refer to the instruction forms for specific details about each W-8 form.
W-8BEN: Used by individuals to claim foreign status or treaty benefits. Individuals may also use it to claim treaty benefits for royalty/passive income treaty benefits.
A U.S. tax identification number is required for exemption from tax withholding.
All fields in line 10 must be completed to claim exemption on Royalty payments.
Instructions: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf
Form: http://www.irs.gov/pub/irs-pdf/fw8ben.pdf
W-8BEN-E: Used by foreign entities to claim foreign status, treaty benefits, or to document chapter 4 status.
A U.S. tax identification number is required for exemption from tax withholding.
Instructions: http://www.irs.gov/pub/irs-pdf/iw8bene.pdf
Form: http://www.irs.gov/pub/irspdf/fw8bene.pdf
W-8ECI: Used primarily by the payee or beneficial owner indicating that all the income listed on the form is effectively connected with the conduct of a trade or business within the United States.
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.
A U.S. tax identification number is required for exemption from tax withholding.
Instructions: http://www.irs.gov/pub/irs-pdf/iw8eci.pdf
Form: http://www.irs.gov/pub/irs-pdf/fw8eci.pdf
W-8EXP: 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.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.
Instructions: http://www.irs.gov/pub/irs-pdf/iw8exp.pdf
Form: http://www.irs.gov/pub/irs-pdf/fw8exp.pdf
W-8IMY: Used by an intermediary, a withholding foreign partnership, a withholding foreign trust, or flow-through entity.
Copies of appropriate withholding certificates, doc.
Documentary evidence and withholding statements must be attached to the W-8IMY.
Instructions: http://www.irs.gov/pub/irs-pdf/iw8imy.pdf
Form: http://www.irs.gov/pub/irs-pdf/fw8imy.pdf
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.