How to fill W-8BEN-E Tax form – Private Limited – India, UK, Canada, Australia

In Taxes by KumarLeave a Comment

If you are working with a US company and getting paid for your work or services, then you will have to fill out W8BEN-E form. Your work could be as simple as a freelancing work or getting paid for Advertising revenue on website/blog , including affiliate revenue or software services. There are two variants of this form, one is for individuals and other is for corporations or firms registered. It would be clearly written on the top of the form. See below screenshots.W-8BEN-E form for EntitiesW-8BEN-E form for Individuals

If you are an individual, it is pretty straightforward, but the complexity comes when you have to do this as an entity or corporation or Private limited. We have registered ourselves as a Private Limited Company in India and below is our experience. Having said this, the structure and fields is same for you to fill, even if you are from United Kingdom(UK), Australia or Canada.  You only replace the country with your country name. I have read a lot of information and came to this conclusion after reviewing tax treaties as well. Anyways, let’s look at how to fill the W8BEN form.

Guide  to fill Part I of the W8BEN-E Form

  • Field Number 1 : Enter the registered name of the company. It should be the official name on your company incorporation documents.
  • Field Number 2 : Country where your company is registered. In our case, it was private limited registered in India, so it is India for us.
  • Field Number 3 : Leave it blank, unless your private limited as single owner.
  • Field Number 4 : Select as corporation, if yours is registered as a private limited. If yours is a partnership firm, then select partnership. 
  • Field Number 5 :  This is probably the most confusing part for many. I literally spent hours reading what I should select. In simplistic terms FFI stands for Foreign Financial Institution. I am assuming, you would not be reading this, if you were a financial company as you would work with property tax and finance people.  For most of the kinds of corporations or partnership firms, in our case Private limited, you should select Active NFFE, it stands for Active Non-Financial Foreign Entity(NFFE).
    • Active NFFE means any company that satisfies these two conditions.
      • The firm/corporation should gets 50% or more revenue from active business transactions or services and not passive income sources. Passive sources include revenue streams like property rental, interest, etc.
      • The firms/corporation’s 50% or more assets should produce non-passive income. Meaning you cannot have assets like rental property assets over 50% of the company’s assets.
  • Field Number 6 :  Enter your corporation’s registered address and country as required. In our case, it is India.  
  • Field Number 7 : If you have different communication address, enter the same here.

You can see below how it all looks and how we have filled it in screenshot.

How to fill W8BEN-E form US Tax form India Private Limited

  • Field Number 8 : In the past you were required to have an US TIN Number, now it is not required anymore. You can just enter the Tax Identification Number corresponding to your country. If you are from India, you would enter the PAN number here. If you also have US Employer Identification number or TIN, feel free to enter that information as well. It will not hurt, but if you don’t have it, not to worry, enter your country specific tax number.  See below.US Tax Payers Options W8BEN form

After this field, you go to Part III Claim of Tax Treaty Benefits.

Also, you can watch the video and fill it, check out the YouTube Video.

How to fill Claim of Tax Treaty Benefits on form W8BEN-E Form

Field 14 a & b : If you are from India, Canada, UK, Australia you have to select Tax Treaty option like below for .  If you are from different country, please check US Tax Treaties Countries Table Document . If you see the name of the country, means you should select the tax treaty option.  Usually, you select option b as well. We have selected a & b as we are focused on getting advertising revenue for our sites from US vendors.

Claim of Tax Treaty Option for W8BEN form Instructions

Now that you are done, there is nothing you need to fill in the middle, leave everything blank and go to section

How to fill part XXV – Active NFFE :

Field 39 : This is pretty self explanatory, but you can read the same. It is same as I described above on revenue the company makes and assets the company holds. If your company’s over 50% revenue is not passive and over 50% of assets are also not producing passive income, then you select this. In general, for most of the companies this is true.Active NFFE Selection option Part XXV on W8BEN form US Tax

Now, you go to the last part of the form

How to fill part XXIX Certification part on W8BEN form

You need to have authority to sign this form like Director or Managing Director or CEO, CFO etc.

Field 43 : You check the box and sign and put in your name, including the date on the field next to it.

Certification Sign W8BEN E form US Tax

It may look scary, when you are a small entity like ours and registered a private limited, but is pretty straightforward, if you follow the above steps. You should always check IRS W8BEN Form instructions page to get full details of instruction and updates.

What has been your experience with the form ? Share your experiences.

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