Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax
persons are subject to U.S. tax at a 30% rate
(the foreign-person withholding
rate) on income
they receive from U.S. sources that consists of:Interest
(including certain original issue discount (OID));Dividends
for, or in expectation of, services performed;
Substitute payments in a securities lending transaction
Other fixed or determinable annual or periodical gains, profits, or income.
A withholding agent or payer of the income may rely on a properly completed Form W-8BEN-E to treat a payment associated with the Form W-8BEN-E as a payment to a foreign person who beneficially owns the amounts paid. If applicable, the withholding agent may rely on the Form W-8BEN-E to apply a reduced rate of, or exemption from, withholding. If you receive certain types of income, you must provide Form W-8BEN-E to:
Claim that you are the beneficial owner of the income for which Form W-8BEN-E is being provided or a partner in a partnership subject to section 1446; and
If applicable, claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States
has an income tax treaty that is eligible for treaty benefits
There is a tax treaty in place between the U.S. and Spain which provides for relief from double taxation
. It would be in your company's best interest to provide the U.S. company with the W-8-BEN-E to avoid the mandatory 30% withholding on payments made to your company.
Please let me know if you require further information or clarification.
Thank you and best regards,