(Sec 1441 NRA foreign withholding tax)

I'm working in U.S Incorporated Company, as a tax analyst. I do analysis on foreign payments for to determine U.S sourced income which is gone out from U.S to foreign vendors. When I requested for the W-8 form from one of our foreign vendors, he provided W-9 form with foreign address, I questioned him W-9 form is for U.S citizens not for foreign vendors –He replied stating their company is incorporated in U.S. I was surprised W-9 form with foreign address; ideally this form should have been with U.S address right?...Will this form is fine?

A W8BEN is a form for non US citizens to use to indicate that the IRS should not automatically withhold 30% tax because as an alien, you are unlikely to owe tax. it is usually kept by the payer, et al, to show that due diligence has been followed. I don't think they are actually sent to the IRS but kept on file with the payer in US in case it is necessary to show why the 30% was not withheld.There is long standing confusion as to whether foreign suppliers need to file W-8BEN with US customers, and if they do how and why. In general, UNLESS those nonresident vendors were physically present in US or their businesses were done in US, they do not need to file W8BEN forms or W9. However, if they want, they may submit form W8BEN forms to the payer in US.

Nonetheless, most foreign suppliers/vendors simply file a W-8BEN without thinking that they need to, and the US companies keep them on record because they do consider them necessary.


Foreign vendors in US ,UNLESS they are US residents for tax purposes, need to provide you, the payer, with W8BEN;W8-BEN is ONLY used where there is a beneficial interest, such as when the foreign taxpayers have an ownership interest in the US company or perform services in the US.

Thanks..! I never had received the W-9 form with foreign residence address from U.S Incorporated companies so far from the vendors.

My question here is -will address matters?

As said it depedns; as long as the vendor, a NRA, is a US resident for tax purposes, then it is OK since he needs to pay SECA tax on his self employment income to the IRS/ state and needs to give you, the payer, form W9;however, if the vendor was not physically present in US or his job was not done in US, then he doesn't need to give you a W9.He even doesn't need to submit you a form W8BEN;however, if he wants, he may submit W8BEN for you, th epayer, in US as there mis no penalty in submitting the form W8BEN.