Foreign Vendors Forms
Generally, you must withhold 30% from the gross amount paid to a foreign payee unless you can reliably associate the payment with valid documentation that establishes either of the following.
- The payee is a U.S. person
- The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. The IRS recommends obtaining proper documentation before making a payment. To leave this site, and view the IRS recommendation, click here.
There are four forms in the W-8 series. The old Form "W-8, Certificate of Foreign Status" is not
valid. The form to use depends on the type of certification being made. You may want to refer to the
"Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP,
and W-8IMY" for further comparisons and explanations of the different forms to use.
IRS Form W-8BEN - Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding. Payees outside of the U.S. do not need a U.S. taxpayer ID to complete this form.
IRS Form W-8ECI – Certificate of Foreign
Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United
States. This form requires the payee to have a valid U.S. taxpayer ID.
NOTE: Users with Adobe 6.0 and above will need to change a setting before completing the forms so that the tabbing order works correctly. Open Adobe Acrobat, go to the tab on top labeled "Edit", go to "Preferences", and "Accessibility". If there is a check mark by "Use document structure for tab order when no explicit tab order is specified", it needs to be unchecked.