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The Form W-8 BEN-E filing requirements were enacted under the provisions commonly referred to as FATCA ( Foreign Account Tax Compliance Act ). FATCA’s overall aspect addresses the noncompliance of U.S. persons with foreign bank accounts. As it pertains to Form W-8 BEN-E specifically, the form documents information on the foreign entity and the entity’s requested treaty benefits.The W-8 BEN-E Form must be provided to any U.S. taxpayer that has transactions (nonproduct related ) with a foreign entity.
Foreign entities are subject to U.S. tax at a 30% rate on certain income received from U.S. sources. Under other applicable Code sections this form is used to establish a foreign entity’s status for foreign withholding and related reporting purposes. The W-8 BEN-E form is now exclusively used by entities to document their status both as payee and beneficial owner. Additionally, an entity that is claiming a reduced rate of, or exemption from, withholding under an income tax treaty will outline their treaty benefits on Form W-8BEN-E.
If you have any questions please contact your tax advisor or contact one of our tax representatives using the form below.
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