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I just got a response saying that they still need all of their non US vendors to fill a w8BEN regardless. I am guessing they mean they will not withhold any money, which is good.
If you don't mind please let me know what I should fill in for question in Part I.3, Part II and Part III. There are just 3 questions that are very cryptic to me.
Thanks very much.
I'm sorry, I didn't realize that. Since I don't understand much of the US IRS laws, I was very concerned.
You had mentioned that "This form is not required unless you have ownership in a US Corporation or perform work inside the US". Could I just tell them that and tell them hence I I don't need to fill that form.
Appreciate your guidance.
Hello I am a different expert her on Just Answer,
All existing foreign vendors should be required to submit the applicable FormsW-8 as soon as possible. If a valid W-8 is not received, the Treasury Regulations contain presumption rules for withholding agents to apply in determining the status of payees for withholding purpose. (See FAQ section 5 regarding documentation requires and Treas. Reg. Sec. 1.1441-1(b) (3) concerning the presumption rules).
This means that if you do not give them the W8 then they are required to withhold.
Form W-8BEN should be used by the foreign vendor to certify that it has non-U.S. status. If a treaty claim is made by the vendor Part II of the W-8BEN must be completed to be eligible for the treaty benefits. If there is no treaty article to claim and you are just certifying that yo are non US resident then you do not need to complete the Part II.
In short you will not be having withholding if you fill out the W8 but they will withhold if you do not because they have to stay within the rules for them when they pay you. Filling out the form by you is the payer's proof that they did not have to withhold.
Thank you. This sounds more in line with what I am have been reading. Thank you, will keep you posted in a day on what the client says.
Thank you for getting back to me. It should be in keeping with what you have been reading because I believe you and I were both able to comprehend the purpose of the W8.
If you wish to wait and rate my assistance till you speak with the client that is fine. If you could look for Robin D when you rate I would appreciate it.