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An Australian rock band, operating through an Australian incorporated

 
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  • Answered by:MyVirtualCPA
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Customer Question

An Australian rock band, operating through an Australian incorporated company, will be touring the USA later this year. Booking agents will withhold 30% of the gross as the company is a non-resident alien. Which is the correct IRS form for the company to complete to gain exemption from this withholding?

Thanks!
Miles

 

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State/Country relating to question: Australia

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Submitted: 325 days and 12 hours ago.
Category: Tax
Value: AU$47
Status: CLOSED

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Expert:  MyVirtualCPA replied 325 days and 12 hours ago.

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

An Australian Rock band? That's awesome! Sounds like you have a far more interesting job than I do...haha.

That being said, I'd love to help you with your question.

The name of the form you are looking for is the W-8BEN, (thats the number 8 followed by BEN) which is where you claim tax treaty benefits.

You can find the information for this form at the IRS web site, here: http://www.irs.gov/businesses/small/international/article/0,,id=96438,00.html

You can also download a PDF version of the form, here: http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

Please take a moment to give me a "Great Service" rating so that I can be compensated for assisting you today. If you have difficulties rating, please let me know and I can submit a manual request via email. However, I'm not compensated unless you rate me, and am penalized for anything below "Got the Job Done" If you have further questions, please hit the "Reply" or "continue conversation" button.

Expert TypeCPA, CMA, CFE
Category: Tax
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Answered: 6/25/2012

Experience: Graduate Accounting Degree from Ole Miss

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Customer replied 325 days and 11 hours ago.

Thank you very much. I couldn't tell from my research if the correct form was W-8BEN or W-8ECI. Thanks for clarifying!

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Expert:  MyVirtualCPA replied 325 days and 11 hours ago.

Glad I could clarify. The W-8ECI is used when you are claiming that your income is from activity that is connected to the conduct of trade or business in the US,

BEN = Benefits, you are claiming tax treaty BENefits.

ECI = Effectively Connected Income = you are foreign, but you have business dealings in the US and as such pay US taxes anyways and therefore don't need withholding

Rock on!

 
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