Help Needed In Filling W-8BEN-E Tax Form

[Tekianaio537]

Hi, We are a  firm from India. I see W-8BEN-E is suitable form for us. I would like to know anyone from India has experience filling in the form.

We are not sure what to select in Treaty Claim statement.. for the section "Please select the applicable Limitation on Benefits provision under which you are eligible for benefits (see instructions). Note that the dropdown below is an exhaustive list; your country's tax treaty may not include all provisions. "

[ElianaC]

Hi @Tekianaio537 For instructors who are looking to make a treaty claim on their W-8BEN or W-8BEN-E forms, certain information is required:

• You must be a resident in a country that has negotiated a tax treaty with the United States (you can see the recent list here).
• You must enter a valid Tax Identification Number (either a foreign TIN or a US-issued TIN) on your form.
• You must indicate that you are claiming the treaty rate on the “Treaty claim statement” page of the form submission process.
• If you are filing as a business entity, you must also specify which “limitation on benefits” provision you qualify under, based on the ones named in your country’s tax treaty. These provisions detail which types of businesses are eligible for the lower rate. You can find more information about LOB provisions here.

 Unfortunately, we are unable to answer your question as that would be considered tax advice. I highly recommend reaching out to a local tax expert for help. You can also click the informational buttons on the platform to get a further explanation about a certain phrase or section.

Eliana Cerna

Udemy Community Moderator

[Rahul Iyer · Accepted solution]

Hi @Tekianaio537,

I am based in India and I can share what I had selected to update my tax form. It looks like you are applying as an organization. I had also applied as an organization and selected "Company with an item of income that meets active trade or business test." It worked fine.

Disclaimer: Before selecting this option, I had sought its validity from my local CA. I would suggest you do the same. After completing these formalities, the US withholding tax reduces from 30% to 15% for Indians. Also, the withholding tax is only applicable for sales made in the U.S.

Further, India has a Double Taxation Avoidance Agreement (DTAA) with the U.S. In this, if you are taxed in the U.S., you need not pay that much amount in India as taxes. You can get tax relief. To gain these benefits, you will be required to submit all of your Udemy income statement to your CA and he will take those reliefs for you when filing the IT returns or paying quarterly taxes.

Hope this helps.

🙂

[Tekianaio537]

Hi Rahul, Thanks for your reply.  If you can share further steps as well , it would be very helpful.