W-8 Forms: When to Use It and Other Types of W-8 Tax Forms
- Mireille, Accountant
- Mar 12, 2023
- 1 min read
Updated: Jun 8, 2023
What Are W-8 Forms?
W-8 forms are Internal Revenue Service (IRS) forms that foreign individuals and businesses must file to verify their country of residence for tax purposes, certifying that they qualify for a lower rate of tax withholding.
Although the W-8 forms are issued by the IRS, they are submitted only to payers or withholding agents, not to the IRS. Failure to submit the form may result in a withholding at the full 30% rate that applies to foreign entities.
KEY TAKEAWAYS
1. W-8 forms are used by foreign persons or business entities to claim exempt status from certain withholdings.
2. There are five W-8 forms: W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY.
3. Form W-8IMY is used by intermediaries that receive withholding payments on behalf of a foreigner or as a flow-through entity.
4. Determining which one to use comes down to whether you’re an individual or an entity, the type of income you receive, and whether you’re an organization that qualifies for special tax treatment.
5. All W-8 forms are valid for the year in which they are signed and for three full calendar years after that.
Who Can File W-8 Forms?
How to File W-8 Forms
Types of W-8 Forms
Form W-8BEN
Form W-8BEN-E
Form W-8ECI
Form W-8EXP
Form W-8IMY
What Is a W-8BEN?
Who Needs to Fill Out Form W-8BEN?
How Do I Get My W-8BEN?
Why Is a W-8BEN-E Required?
Summing Everything Up
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