W-8ben

[Brian Turner]

Damn, I'm working with a pretty big US corp, but although the guy I was liasing with originally was fine paying my cheque or Paypal, he left and now eight months after starting, their accounts department are asking for a W-8 tax form to prove my exemption from US taxes (otherwise they have to withold 30% payment).

Fine. W-8? Sure, I'll search on the IRS website. Oh, great - there's four different types: W-8 BEN, W-8 IMY, W-8 ECI, or W-8 EXP.

I did actually ring the IRS, simply to ask which W-8 form to use - but after speaking to 2 people and spending nearly twenty minutes on the phone, most of left on hold, they really weren't too sure and I hung up while placed in another queue.

Anyway, I read through the forms online, figured W-8BEN was the one I had to fill in.

Trouble is, there's a couple of tricky questions on it.

For example, Part II has a few options: "The beneficial owner is a resident of [UK] within the meaning of the income tax treaty between the United States and that country".

Fine. No problem.

But then two options down: "The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, if applicable, meets the requirements of the treaty provision dealing with limitations on benefits (see instructions).

Okay, let's look at the instruction... :"An item of income may be derived by either the entity or, in certain circumstances, both. An item of income paid to an entity is considered to be derived by the entity only if the entity is not fiscally transparent under the laws of the entity's jurisdiction with respect to the item of income..."

Huh?

Also, do I tick the box for "I have provided or will provide a statement that identifies those notional principal contracts from which..." ...?

I thought some of those UK government "easy reading" leaflets were a bit patronising, but at least they *try* to explain things...

Will try and ask my accountant tomorrow, if not, try the IRS again.

[Brian Turner]

Hoo-ray!

Finally got the information I needed.

And just for anyone else who needs to know - the IRS department that deals with foreign (non-US) companies can be reached on:

00 1 215 516 2000