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I am a uk tax resident , I am purchasing a note (private loan contract) from a US maryland LLC that will make schedule interest payments. I will file a w8 to claim tax treaty benefits, should this be a w8ben or a w8eci. The payments are regular, known and scheduled, connected to rental income.
Hello and thank you for using Just Answer,You would use the W8 ECI in this case. You will need an Individual Tax Identification Number to list on line 6 or the withholding exemption will not be valid.
I hope the information was helpful, I know all the different types of W8 documents can be confusing.
the w8ben is only used for income connected with us registered securities ? the individual tax identification number can be obtained online ?
Let me get you the IRS (they issue those) url fo rthe ITIN request
one sec please
They do not issue those online
because documentation must me supplied.
The W8 forms are not sent to the IRS by the requester. They retain those so they can explain (if asked) why they did not withhold.
ok , the w8ben does not need an itin ? i ve filed those regularly , is this correct ?
That is correct
Many think you have to have one for the BEN but you do not
It depends on the nature of the payment
this is a private note that pays interest , basically but not registered
It is a note on a rental property though which constitutes effectively connected income in the US if the rental property is in the US
as you are not in the US you can request the relief from the withholding based on that
yes , that is the idea , so claim the uk tax treaty benefits which bring the withholding from 30% to 0%
ok ,thank you very much !
the US company needs to be able to deduct the interest
so they need to show where it went
but without the W8 they cannot deduct
that is also clear
because teh IRS needs to know who got the interest
did not intend to ramble
some wish to know why
ok , thanks for this , I think i can close the chat now
have a good rest of the day , thank you again
Your positive rating is always thanks enough.