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      What is a W-8BEN-E form, and how do I fill it out?

      Although Legacy Global is based in Mesa, Arizona, our clients support charitable initiatives all over the globe.

      Legacy Global has many clients that recommend organizations or companies based outside the United States to provide services to a program or receive a charitable grant. In order to maintain transparency with the IRS, we may require a foreign company to fill out a W-8BEN-E. 

      The W-8BEN-E is a form used by the IRS to collect tax information for companies based on the United States of America.  Most commonly, organizations that are required to fill out a W-8BEN-E only fill out 4 parts, Part I (page 1), Part III (page 2), Part XXV (page 7) and Part XXX (page 8). This article will be reviewing the common information required on the W-8BEN-E.

      The following information in Part I for the W-8BEN-E is required:

      1. The full name of the organization 
      2. The original country of registration
      3. Name of disregarded entity: Only used if the payment is being sent to a third party accounting organization, such as a foreign foundation, a bank, or an LLC
      4. Chapter 3 Status: The Chapter 3 Status reflects the type of entity that the company is. Most of the recipient foreign companies are listen under the Corporation (solo owned company)or Partnership status (company owned by multiple people).
      5. Entity FATCA status: FACTA is the Foreign Account Tax Compliance Act. This determines the involvement in foreign financial institution for reporting on foreign assets. The following FATCA classification is commonly applicable:
        • Active NFFE: Active privately owned business (Non-Financial Foreign Entity)
        6.    Permanent address: Organization address

        7.    Mailing address: If same as organization address, please skip

        8.    Tax Identification Information: Provide Tax Identification Number (TIN) in applicable box, Line 8 for             US; Line 8b for Foreign

      The following information in Part III for the W-8BEN-E is required:

      1. Claim of Tax Treaty benefits: This part of the W-8BEN-E is dependent on the type of organization is filling out the W-8 BEN-E, in lines 14a and 14b.

      Line 14a: Check box and list country where organization is registered: see Part I, line 2.

      Line 14b: Check which box applies to the organization

      The following information in Part XXV for the W-8BEN-E is required: 

      1. Active NFFE Certification: As long as an organization remains an active non financial foreign institution (Active NFFE), this section of the W-8BEN-E requires certification. If the organization has a different FATCA Code, then this part does not apply,

      The following information in Part XXX for the W-8BEN-E is required:

      1. Certification: Signifies that the information listed in the W-8BEN-E is true, correct and complete. This part requires check in the certification box, a signature, printed first and last name, and a date.

      To submit your W-8BEN-E to Legacy, please visit this link to instantly share the information with our team!

      For more information on how to fill out the W-8BEN-E, the following resources are available from the IRS:

       

      This article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction