Tax Forms

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General Tips for Completing Tax Forms

1. Accurate Information: Ensure all details match official tax records.
2. Timely Submission: Submit forms promptly to avoid payment delays.
3. Authorized Signatures: Ensure the form is signed by an authorized individual.
4. Delay in Form Submission: Failure to provide the necessary forms can result in higher withholding taxes or delays in payment processing.

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Form W-8 BEN: For Non-U.S. Individuals

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What is Form W-8?

W-8 forms are Internal Revenue Service (IRS) forms that foreign individuals and businesses must file to verify their country of residence for tax purposes, certifying that they qualify for a lower rate of tax withholding.

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How to Fill Out Form W-8 BEN (only for non-US Individuals)

Part I Line 1

Enter your name as the beneficial owner. Add your full name on this line.

Part I Line 2

Enter your country of citizenship.

Part I Line 3

Enter your permanent residence/mailing address.

Part I Line 4

Enter your mailing address, if different.

Part I Line 6

Enter your foreign tax identifying number (Tax identification number issued by your country of residence).

Part I Line 8

Enter your date of birth.

Part II Line 9

Enter the foreign country under whose tax laws you claim tax benefits.

Part II Line 10

Foreign individuals who are students and researchers should enter specific withholding rates.

Part III

Here, you’ll need to certify with your signature that everything on the form is true and correct and that you aren’t a U.S. person. Insert the date of form completion and certification in a mm-dd-yyyy format.

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Sample W-8 BEN Form (To be Added)

Sample Profile

Individual: Aditya Singh

Type: SaaS / Digital Products

Country: India

TIN: Pan or equivalent tax ID in your country

Page 1

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Form W-8 BEN-E: For Non-U.S. Entities

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What is Form W-8 BEN E?

W-8 BEN E forms are Internal Revenue Service (IRS) forms that foreign businesses must file to verify their country of residence for tax purposes, certifying that they qualify for a lower rate of tax withholding.

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How to Fill Out Form W-8 BEN E (only for non-US entities)

Part I

1. Name of Organization That is the Beneficial Owner

This is your entity name.

2. Country of Incorporation or Organization

This is the country of residence (where the business is registered). For a corporation, it is the country of incorporation. If you are another type of entity, enter the country under whose laws you are created, organized, or governed.

3. Chapter 3 Status

In this section, the most commonly checked box is “Corporation”. The majority of foreign entities that are doing business fall under “Corporation” or “Partnership” status. Other options include:

• Foreign government – Controlled Entity
• Foreign government – Integral Part
• Estate
• Simple trust (grantor and complex, too)
• Central Bank of Issue
• Tax-exempt organization
• Private foundation
• International organization
• Disregarded entity

For Private Limited company- check W8-ben-e-form_PLC sample

For Limited Liability Partnership- check W8-ben-e-form_LLP sample

4. Chapter 4 Status (FATCA Status)

For SaaS/Digital Products, the most common choice here is Active NFFE. This means the business is an Active Non-Financial Foreign Entity. If none of the other categories fit, Active NFFE is the best option.

5. Permanent Residence Address

This is your business’s permanent resident address. Your permanent residence address is the address in the country where you claim to be a resident for purposes of that country’s income tax.

8-10. Tax Identification Information

You may provide the FTIN issued to you by your jurisdiction of tax residence on line 9b for purposes of claiming treaty benefits.

Part XXV – Active NFFE

In this part of the form, you simply need to check box 39 to certify that:

• The entity in Part I is a foreign entity that is not a bank or financial institution.
• Less than 50% of the gross income for the preceding calendar year is passive income.
• Less than 50% of assets held are assets that produce or are held for the production of passive income (calculated as a weighted average of the % of quarterly passive assets).

Part XXX – Certification

The most important part of the document is the certification and signature. Here, in writing, there needs to be a first name, last name, and date (on which the form was signed). The person signing the W-8BEN-E form must be authorized to sign for the beneficial owner.

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Sample W-8 BEN-E Form

Sample Profile

Company: ABC Technologies LLP/PVT LTD

Type: SaaS / Digital Products

Country: India

TIN: Pan or equivalent tax ID in your country

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Private Limited

Page 1

Page 2

Page 8

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LLP

Page 1

Page 2

Page 8

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Form W-9: For U.S. Citizens or Entities

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What Is Form W-9?

Form W-9 is an IRS tax form used to confirm a person’s name, address, and Taxpayer Identification Number (TIN) for employment or other income-generating purposes. It applies exclusively to U.S. citizens or entities.

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How to Fill Out Form W-9?

Step 1: W-9, Line 1

Enter your name as shown on your tax return.

Step 2: W-9, Line 2

Enter your business name or “disregarded entity” name, if different from the name you entered for step 1. For example, you might be a sole proprietor, but for marketing purposes, you don’t use your personal name as your business name; instead, you are “doing business as” some other name. You would enter that name here.

Step 3: W-9, Line 3

Select which type of business entity you are for federal tax classification: sole proprietorship, partnership, C corporation, S corporation, trust/estate, limited liability company, or “other.” Check the appropriate box, and only one classification should be selected.

If you’re not sure what type of business entity you should select, the IRS has provided a summary table for guidance as part of the Form W-9’s instructions.

Step 4: W-9, Line 4

With exemptions, chances are you’re going to leave these boxes blank. Here are a couple of exceptions:

• Payees that are exempt from backup withholding, such as corporations (in most cases), might need to enter a code in the “Exempt payee code” box. The Form W-9 instructions list the exempt payees and their codes and the types of payments for which these codes should be used. Corporations filling out a W-9 for receipt of interest or dividend payments, for example, would enter code “5.”
• Payees that are exempt from reporting under the FATCA might need to enter a code in the “Exemption from FATCA reporting code” box. Neither of these boxes will apply to the typical independent contractor or freelancer.

Step 5: W-9, Lines 5-6

Provide your street address, city, state, and ZIP code. Use the address that you will use on your tax return.

Step 7: W-9, Part I

The IRS calls the next section Part I. Here, you must provide your business’s tax identification number, which will either be your individual Social Security Number if you’re a sole proprietor, or your EIN if you’re another type of business.

Step 8: W-9, Part II

In Part II, you must attest to the truthfulness of all of your information before you can sign Form W-9.

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Sample W9 Form

Sample Profile

Company: ABC Technologies INC

Type: SaaS / Digital Products

Country: US

TIN: SSN or EIN