This form is used by foreign entities to document their statuses for purposes of chapter 3 and chapter 4, as well as for certain other Code provisions as described later in these instructions. If you are a resident in a FATCA partner jurisdiction (that is, a Model 1 IGA jurisdiction with reciprocity), certain tax account information may be provided w8 forms definition to your jurisdiction of residence. Failure to provide the W-8 form could lead to the agent withholding a 30% tax rate or backup withholding rate. A form that satisfies these substitute forms requirements may be treated as a similar agreed form for purposes of an applicable IGA unless the partner jurisdiction declines such treatment.

See Nonresident alien who becomes a resident alien, earlier, for a general explanation of saving clauses and exceptions to them. A transfer is a sale, exchange, or other disposition, and includes a distribution from a partnership to a partner, as well as a transfer treated as a sale or exchange under section 707(a)(2)(B). A financial institution generally means an entity that is a depository institution, custodial institution, investment entity, or an insurance company (or holding company of an insurance company) that issues cash value insurance or annuity contracts. Most W-8 forms are valid through the last calendar day of the third year. If Form W-8BEN was signed and filed on Sept. 6, 2021, it would be valid through Dec. 31, 2024.

What is a W-8 Form?

The payee (employee), not the type of income, dictates whether a W-8 form must be withheld by the payer (employer). Tax withholding is required for most income earned in the U.S., regardless of whether the individual receiving that income is a U.S. citizen. Payers (like an employer) then forward this tax money to the federal government on behalf of the payee (like an employee). Non-US contractors, freelancers, and vendors should submit the correct completed W-8 form to you, the paying company, before the first payment, is made. If they delay in submitting the form, your company or the withholding agent might have to withhold the full 30% that is normally withheld under US tax law. To make things even more fun, there are five different W-8 forms, each of which can be used to manage tax requirements for entities that declare a foreign tax ID status.

Since Harvard University is not a financial institution, only a few parts are required to be completed before Harvard University is able to issue payments to a foreign entity. However, other parts might also be necessary when conducting business with other withholding agents. As such, you may need to seek legal guidance from a tax professional outside of Harvard University with specific business use inquires. Form W-8BEN-E is valid three years from when it has been signed, unless a change in circumstances makes the information provided on the form W-8BEN-E inaccurate. If a QI checks line 15f of Part III of the form to certify that it assumes primary Form 1099 reporting and backup withholding responsibility, you may accept the form even if you do not know if there are any U.S. accounts receiving reportable payments at the time of the certification. However, a QI is not required to check line 15i of Part III of the form until it provides a withholding statement identifying an intermediary or flow-through entity that receives a payment allocated to a chapter 4 withholding rate pool of U.S. payees.