How do I fill out a W 8BEN form in Canada?

What is Form W-8BEN Canada?

A W-8BEN form is a tax document used to certify that your country of residence for tax purposes is outside of the United States. It is required because of an intergovernmental agreement between Canada and the U.S. which obligates Canadian Financial Institutions to provide this information.

Who needs to fill out Form W-8BEN?

Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding. Submit Form W-8 BEN when requested by the withholding agent or payer whether or not you are claiming a reduced rate of, or exemption from, withholding.

Does Canada use w9 or w8?

Americans and US foreigners must complete a W-9 form when they start working with a new employer. … This form can be called Canadian equivalent to W-9. It establishes the status of a foreigner who is working for an American employer.

Where do I send my W8BEN form?

Do not send Form W-8BEN to the IRS. Instead, give it to the person who is requesting it from you. Generally, this will be the person from whom you receive the payment, who credits your account, or a partnership that allocates income to you.

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What is W8BEN E form used for?

WHAT IS THE W-8BEN-E AND WHAT IS ITS PURPOSE? The W-8BEN-E is an IRS mandated form to collect correct Nonresident Alien (NRA) taxpayer information for entities for reporting purposes and to document their status for tax reporting purpose.

What is the difference between w8 and w8ben?

Form W-8BEN is used by foreign individuals who receive nonbusiness income in the U.S., whereas W-8BEN-E is used by foreign entities who receive this type of income.

What is my W-8BEN tax information?

The W-8 BEN form allows tax exemptions and categorizes you to be taxed appropriately as a foreigner. Form W-8BEN is a “Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding and Reporting”. … Generally, a current W-8BEN form will be in effect till 31st December, three years after the date of signing.

Does Canada have a foreign tax identification number?

Enter the Canadian identification number assigned to the non-resident for tax purposes such as: a social insurance number ( SIN ), an individual tax number ( ITN ), a temporary tax number ( TTN ) or a payroll program account number (15 characters).

Why do I need to fill out a w8ben?

The purpose of the W8-BEN is to: Establish that someone is a foreign person (certificate of foreign status). It is used at audit time to support a 30% tax rate. … Claim a reduced rate of, or exemption from withholding as a resident of a foreign country with which the United States has an income tax treaty.

What is my foreign tax identifying number?

Your foreign tax identifying number is issued by your country of permanent residence. If you are not able to provide a foreign TIN, you need to also complete the Explanation of Missing Foreign Tax Identifying Number form (PDF).

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Is W8 form mandatory?

All non-US persons and entities are required to complete an IRS Form W-8 to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding when opening an account. … W-8 Forms are not provided to the IRS.