If you’ve ever done business in the United States from abroad or received dividends from US securities, you’ve likely been asked to complete a Form W-8 or W-9. These forms, created by the IRS, are intended to identify the individual or entity receiving income from US sources.
It’s important to note that foreign, non-US based individuals or entities complete a W-8, while US based persons or entities complete a W-9. These forms help identify the type of entity, the taxable status of an entity, and how much US tax is due to be withheld from the gross amount paid.
Without a properly prepared W-8, the person or entity making a payment to you would need to withhold taxes at the maximum rate, currently 30%. Meaning, if you didn’t submit a complete and accurate form, the IRS will end up with more of your money than they should!
This often leads to non-US persons needing to file a US income tax return to reclaim tax that was over-withheld, a costly and time-consuming process.
At US Tax Services AG, we are experts in W-8 forms and can assist you with any taxation and compliance related questions. Don’t hesitate to reach out to us for assistance!
USTS
Learn how USTS can assist you with W’8’s and other complicated issues, please contact us with questions at info@ustaxservices.ch
hashtagtax hashtagcorporations hashtagpartnerships hashtagtaxes hashtagustax hashtagustaxation hashtagamericansabroad
