A W-8BEN form is a tax document used to certify that your country of residence for tax purposes is outside of the United States. It is required because of an intergovernmental agreement between Canada and the U.S. which obligates Canadian Financial Institutions to provide this information.
Do Canadian companies need to complete a W8?
Who Needs to Fill Out a W-8BEN Form in Canada? If you’re a sole proprietor who receives payment from a U.S. client, you must submit Form W-8BEN to the company that is paying out the income. The form includes a declaration that you’ll include this income on your Canadian tax return.
What is the W8 form used for?
Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services.
Who should fill out a W8 form?
Who Can File W-8 Forms? W-8 forms are filled out by foreign individuals or entities that lack U.S. citizenship or residency, but have worked in the U.S. or earned income in the U.S. A U.S. resident or resident alien will never have to complete a W-8 form.
How do I fill out a W8 form in Canada?
How to complete W-8BEN Form for an individual in Canada? Line 1: provide your name. Line 4: enter a mailing address if it is different than your personal address. Line 5: list your U.S. tax identification number, such as a Social Security number or individual tax identification number or employer identification number.
Is w8 form mandatory?
All non-US persons and entities are required to complete an IRS Form W-8 to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding when opening an account. … W-8 Forms are not provided to the IRS.
Does Canada use w9 or w8?
US non-resident independent contractors and foreign companies that receive income from US employers must complete a W-8 form, PDF can be downloaded here. This form can be called Canadian equivalent to W-9. It establishes the status of a foreigner who is working for an American employer.
What is the difference between W8 and w9?
Form W-9 is to be filled out by US workers that have a SSN or TIN, while W-8 forms are filled out by foreign individuals and non-resident aliens who receive income from US sources.
What is my foreign tax identifying number?
For most individuals in the UK the TIN will be their National Insurance Number.
What is an exempt foreign person?
You are an exempt foreign person for a calendar year in which: • You are a nonresident alien individual or a foreign corporation, partnership, estate, or trust; • You are an individual who has not been, and does not plan to be, present in the United States for a total of 183 days or more during the calendar year; and.
Does Canada have a foreign tax identification number?
Enter the Canadian identification number assigned to the non-resident for tax purposes such as: a social insurance number ( SIN ), an individual tax number ( ITN ), a temporary tax number ( TTN ) or a payroll program account number (15 characters).