Several members have asked the CSCB whether they are required to complete form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).
U.S. taxpayers who have non-product related transactions with a foreign entity must have a completed form from the foreign entities with whom they do business. This form allows the U.S. taxpayer to determine whether or not they should be withholding U.S. tax on fees paid to Canadian resident entities.
There are 30 parts to this form, but not all need to be completed. We have consulted with our accountants who have advised that the following must be completed:
Part 1 - #1, 2, 4
Part 1 - #5 – status should be “Active NFFE”
Part 1 - #6
Part 1 - #8 (if they have a US Employer Identification Number); if not, provide Canadian Business Registration Number in 9 (b)
Part III – tick off box 14 (a) and (b). Enter “Canada” on line 14 (a)
Part III – line 15 – indicate Article “VII” and “Nil” % rate; type of income should be “fees”. On the reason line, enter “no permanent establishment in the U.S.”
Part XXV – tick off box 39
Part XXIX – complete Certification
Members should keep a completed copy on file as they may be getting multiple requests for this form.
Additional information is available at: