Hi,

I have recently done some consulting work for a US company, although all work for the company was done outside the US. I have done the work through a non-US company and I am not a US citizen or taxpayer. However I have been asked to fill out the W-8BEN by the company in the so that they don't withhold tax. I've been told that as the work has been done overseas by a non-us person/company that I should not have to fill the form and should not be subject to the witholding tax.

Can anyone help on this please as the instructions for the form are not specific enough.

Thanks

The income earned while working as a non-resident alien (NRA) OUTSIDE of the United States is NOT subject to U.S. income taxes.

However, the Form w-8BEN is required so the company can show the IRS documentation to prove your NRA status. If the company does NOT get the Form W-8BEN from you, by law they MUST withhold 30% of the income owed to you, and then you would have to file a tax return to get it back.

Completing the Form W-8BEN to prevent the withholding is both easier and quicker than submitting a tax return.

Many thanks for your clear and concise answer. The Support documentation with the form is really difficult to understand if you are not a lawyer or accountant used to that wording.

Complete part I and Sign on part IV. That is all is needed. You are not claiming any tax treaty benefits.

MukatA has it right; his guidance, as always, is RIGHT on!