Form W-8BEN-E is a tax form , which is required to be provided by UAE companies to certify their status, to their US customers, for U.S. tax withholding purposes. UAE companies are required to file Form W-8BEN-E to US customers, who may be remitting certain income / payments to them. The information provided by UAE companies in Form W-8BEN-E facilitates deduction of appropriate or lower withholding tax in US, so that they do not end up paying excess tax in US, for which credit cannot be taken in the UAE.
What is Form W-8BEN-E ?
Form W-8BEN-E is required to be filed by UAE companies, which derive any income/ receipt from USA, for the following purpose : –
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- To substantiate that they are beneficial owner of an income ;
- To confirm that they are a non-U.S. company which is not subjected to U.S. tax withholding or reporting requirements.
The income may be managerial, consulting or technical fees, recruitment fees, company set up fees, capital gains, content writing fees, business income or any other form of receipt.
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Why are UAE Companies required to provide Form W-8BEN-E?
UAE companies are considered as foreign companies for tax purpose in USA. When a UAE company earns U.S. sourced income, there may be a Withholding tax in U.S. To reduce/ optimise the amount of tax that is withheld, a UAE company can confirm that they are non-resident for US tax purpose, by providing Form W-8BEN-E.
However, submitting Form W-8BEN-E does not guarantee deduction of lower tax, but it is essential to provide this form to ensure payment from US customer. Tax deduction may be applied at a higher level, given that there is no UAE – US Tax Treaty.
How to fill Form W-8BEN-E ?
In order to complete Form W-8BEN-E , the UAE entity is required to provide various information. This could include, the full legal name as per Trade License, country of organization, i.e UAE, type of entity LLC, partnership etc, as may be applicable. The form must be completed accurately to avoid incorrect tax withholding.
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Various Fields of Form W-8BEN-E:
Various Part of Form W-8 BENE and information to be provided are as under : –
Part I – Identification of Beneficial Owner
Line 1: Name of organization – The legal name of the entity receiving the income
Line 2: Country of incorporation or organization – The country where the entity is legally established.
Line 3: Name of disregarded entity (if applicable) – If the entity is disregarded for U.S. tax purposes, the name of the entity whose income is being reported.
Line 4: Chapter 3 Status (entity type) – The type of entity under U.S. tax law (e.g., corporation, partnership).
Line 5: Chapter 4 Status (FATCA status) – The FATCA classification of the entity (e.g., participating FFI, non-participating FFI).
Line 6: Permanent residence address – The address in the country where the entity is a resident.
Line 7: Mailing address (if different from above) – Address where correspondence should be sent, if different from the permanent address.
Line 8: U.S. taxpayer identification number (if applicable) – TIN issued by the IRS, if the entity has one.
Line 9a: Foreign tax identification number – The tax identification number issued by the entity’s country of residence.
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Line 9b: Reference number(s) (optional) – Any additional reference number(s) the entity wants to provide.
Line 10: Date of birth (if individual) – Not applicable for entities, but relevant for individual filers.
Part II – Claim of Tax Treaty Benefits
Line 14a: Country of residence – The country where the entity is a resident for tax purposes.
Line 14b: Special rates and conditions – If the entity claims benefits under a tax treaty with US, the specific Article and tax rates provided under relevant Article of the treaty that apply.
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Part III – Certification
Certification that information is correct – The entity must certify that the information provided is accurate and that it is not a U.S. person.
Signatory – The individual signing must be authorized to sign on behalf of the entity and provide their name, title, and signature, along with the date.
Part IV – Certification of Entity’s Status
This section includes certifications regarding the entity’s FATCA status and the information provided in the form. The entity must certify its FATCA classification and other relevant details.
Sample Form W-8BEN-E:
You can find a sample of Form W-8BEN-E on the IRS website .
How Sorting Tax can assist you to prepare Form W-8BEN-E ?
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Sorting Tax has been assisting several companies in India and UAE to complete all applicable section of Form W-8BEN-E.
If you need assistance on filling out Form W-8BEN-E CONTACT US NOW
Link W8BEN -E : https://www.irs.gov/pub/irs-pdf/fw8bene.pdf
