Form W-8BEN

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An Indian proprietorship selling videogame codes to a US company is being asked to complete a W-8BEN form before receiving USD wire transfers. This form is an IRS requirement to gather taxpayer information from non-US residents. Generally, if you are a non-resident and your buyer isn't deducting tax, you are likely exempt from US taxes on this income.

AS-111

AS-111 (Querist)
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22 February 2022 We are located in India and am a proprietorship and we sell videogame codes to company in US ,they are asking us to fill W8-BEN form before making wire transfer payment in USD to our bank ,we wish to know if we become liable to pay any tax to the US govt for this or if we are exempt/ 0 % tax ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 February 2022 The W-8BEN is an IRS mandated form to collect correct Nonresident Alien (NRA) taxpayer information for individuals for reporting purposes and to document their status for tax reporting purpose.
Information collected to know residential status for taxation purpose. Mostly you will be exempt being non resident.

AS-111

AS-111 (Querist)
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22 February 2022 Hi sir,

thank you for taking your time to answer the query ,can anyone confirm the exemption status or 0 % tax please ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 February 2022 You will not be liable to pay any tax to the US government directly. If your buyer is not deducting any tax on your payment it's exempt.

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