Are you an Australian entity receiving payments from the United States (US)? If yes, you may be asked by the payer to submit a W-8BEN-E form to assist with reducing or eliminating US withholding taxes. This page will discuss:
- what the W-8BEN-E form is;
- who needs to complete it;
- how to complete it.
What is the W-8BEN-E form?
The W-8BEN-E form (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)) is used to inform the Internal Revenue Service (IRS) about the details of non-US entities receiving payments from United States sources.
Where can I access it?
The current version of the W-8BEN-E form can be accessed on the IRS website. Instructions to complete the form are also available as a PDF.
Who must complete it?
The form must be completed by non-US entities receiving payments from US sources. Entities include corporations and trusts, but not individuals. Non-US individuals should instead use form W-8BEN.
More details about the entities who should complete the W-8BEN-E form are found under the heading on the front page of the form.
Who is it sent to?
The W-8BEN-E form should be sent to the United States withholding agent or payer, not the IRS. For example, the W-8BEN-E form should be sent to a United States lender making interest payments to an Australian entity, rather than to the IRS itself.
Completing it
There are generally four to five sections of the W-8BEN-E form to complete.
Completing Part I (Identification)
Part I contains 10 questions requesting general information about the entity. Questions 4 and 5 are the most important questions that will impact how the rest of the form is filled out.
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Question
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COMMENTS
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Example
uses 2
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1
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Name of organization that is the beneficial owner |
Full name of trust, corporation or other entity. |
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2
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Country of incorporation or organization |
Australia (or other country). |
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3
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Name of disregarded entity receiving the payment (if applicable, see instructions) |
Only applies if the recipient of the payment is a ‘disregarded’ entity for United States tax purposes. This is unlikely to be a common occurrence. |
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4
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Chapter 3 Status (entity type) |
Select one box in the list depending on the entity status. For example, Australian companies should generally select ‘corporation’ and most Australian fixed trusts should select ‘complex trust’. Please note that if the entity has ‘checked the box’ to be treated as a corporation under US law, the response should take this into account. |
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5
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Chapter 4 Status (FATCA status) |
Select the box that indicates the Foreign Account Tax Compliance Act (FATCA) status of the entity. Four common categories for Australian entities are:
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6
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Permanent residence address |
In general, the address in the country where you claim to be a resident. |
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7
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Mailing address (if different from above) |
Only complete if different to 6. |
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8
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U.S. taxpayer identification number (TIN), if required |
Only complete if you have a US TIN (typically a U.S. employer identification number (EIN)). In some cases you do not need to provide your TIN. |
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9
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9a – GIIN 9b – Foreign TIN 9c – Check if FTIN not legally required |
The GIIN is the number generated when a financial institution registers with the IRS (if any). You are not required to provide your Australian tax file number though you may do so. |
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10
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Reference numbers |
Generally left blank. |
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Completing Parts II and III (Treaty benefits and disregarded entities / branches)
You should only complete Part II if a disregarded entity with a GIIN or a branch of an FFI in a country other than the FFI’s country of residence is involved. If so, you will need to fill in the FATCA status, address and GIIN (if any) of the disregarded entity in questions 11-13.
You can choose to complete Part III if you wish to claim tax treaty benefits in relation to certain payments. It is important to note that the Australia-US Double Tax Convention contains narrow and complicated limitation on benefits provisions. The eligibility for treaty relief should be carefully considered in the particular circumstances of each entity.
A flow-through trust is often treated as a ‘reverse hybrid’ and would not typically claim treaty benefits for the trust itself. The trust (being an intermediary) may complete Form W-8IMY and may be able to claim benefits on behalf of its members in Forms W-8BEN or W-8BEN-E. Different or additional documentation may also be required.
Completing Parts IV – XXIX (Based on the FATCA responses above)
You may be required to provide further information in relation to your FATCA status response in question 5. For example, if you selected “Nonreporting IGA FFI. Complete Part XII”, you will need to complete Part XII.
These additional FATCA sections are based heavily on US concepts, and less so from the IGA.
Completing Part XXX (Certification)
The appropriate signatory for the entity needs to declare that he/she has examined the information on this form and to the best of his/her knowledge and belief it is true, correct, and complete. Certain certifications are then made. The declarations and certifications are made under penalties of perjury.
There is also a promise to provide a new form within 30 days if any certification becomes incorrect (eg there is a change in the FATCA status or treaty eligibility).
For more information
Please contact a member of the KWM Tax Team or your usual KWM contact if you would like guidance on completing the W-8BEN-E form, or advice on the Australian tax related inputs.
KWM is at the forefront of advising Australian major businesses on their Australian FATCA/CRS characterisation, due diligence and reporting obligations, and eligibility for treaty relief. To the extent the form depends on matters of US law, we are able to leverage our existing relationships with US firms should specific US advice be required.
Our comments on this page are based on the version of the W-8BEN-E form on the IRS website dated 21 October 2021.
