Form W-8 BEN-E - A Comprehensive Guide for Indian Businesses

What is Form W-8 BEN-E ?

Form W-8 BEN-E is a U.S. tax form , which is required to be provided by Indian businesses (companies, partnership firms, LLP amongst others), to certify their ?tax status to the US IRS. It can also be used to claim benefit of lower tax rates under the India USA tax treaty. It is required to be provided by Indian companies for receipt of technical fees, royalties, dividends, or capital gains .

If you are an individual, you need to file Form W-8 BEN. You can read more about it Here

Why Do Indian Businesses Need to File Form W-8 BEN-E ?

If an Indian company receives income from a US entity, it is required to provide? Form W-8 BEN-E to determine its tax liability ?in the USA. If you do not provide this form, the U.S. company may withhold taxes at a higher rate of upto 30%. By filing this form correctly, Indian businesses can benefit from reduced withholding rates as per the U.S.-India tax treaty.

If you need assistance in completion of the Form, Guidance on Tax Treaty Benefits or its review and submission Support Connect with us now

Benefits of Filing Form W-8 BEN-E

• Avoids Excessive Tax Withholding in the USA ; ?
• Ensure IRS Compliance ?;
• Streamline Business Transactions – US customers would not make payments without Form W-8 BEN-E
• Avail lower tax rates, if applicable under U.S.-India Tax Treaty ?

Who Should File Form W-8 BEN-E?

? Indian companies providing services to U.S. clients

? IT firms, outsourcing companies, and BPOs receiving payments from U.S. clients

? E-commerce businesses selling products to U.S. customers through platforms like Amazon or eBay

? Investment firms & holding companies earning interest, dividends, or royalties from U.S. sources

? Any Indian entity receiving U.S.-sourced payments subject to withholding tax

Download Form Here

Steps to Complete Form W-8 BEN-E

1. Identify Your Entity Type?
2. Provide Beneficial Ownership Information? including tax identification number.
3. Determine Tax Treaty Benefits?
4. Certify Foreign Status? out of various categories listed in the Form

If you need assistance in completion of the Form, Guidance on Tax Treaty Benefits or its review and submission Support Connect with us now

Common Mistakes to Avoid

• Incomplete Information can lead to rejection or delays.
• Incorrect Tax Treaty Claims?
• Failure to Sign the Form?
• Do not file Outdated Forms - Download Form Here

?Filing Form W-8 BEN-E is complex since it also involves assessing things as per US Local laws and concepts, which are not common in India. ?In case you need assistance in completion of the Form, Guidance on Tax Treaty Benefits or its review and submission Support, Connect with us now

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