IMMEDIATE RESPONSE REQUIRED
Under U.S. tax regulations, a valid W-8 form generally needs to be obtained and updated every 3 years. In addition, the Internal Revenue Service (“IRS”) has issued updates to the W-8 forms in connection with newly enacted U.S. tax regulations related to the Foreign Account Tax Compliance Act “(“FATCA”). U.S. companies, like Western Union that pay foreign vendors for services performed are required to obtain a signed updated form. We must withhold 30% from certain U.S.-source payments unless the required documentation from the foreign vendor is obtained. This default withholding requirement exists even where the foreign vendor’s services would not ultimately be subject to U.S. tax. The only way to avoid this default 30% withholding is for Western Union, the U.S. payor, to obtain from you a signed Form W-8BEN, W-8BEN-E or Form W-8ECI, as described below.
Please note that the Form W-8 is not required to be filed with the U.S. tax authority. The U.S. tax regulations only require that the U.S. payor maintain a valid Form W-8 in its files. The W-8s would only be viewed by the U.S. tax authority if the company is audited, and even then the form’s purpose is only to prove to the U.S. tax authority that no withholding was required.
Which Form to Complete
Below are examples of the relevant forms and some general comments on sections to complete. The specifics of your situation may require additional sections or alternative forms. For further guidance on how to complete the forms, or which forms are applicable to your company, please refer to www.irs.gov. To download a copy of the form, go to www.irs.gov, choose the tab “Forms & Pubs,” select “Current Forms & Pubs,” and in the search box type the form number (i.e. W-8BEN-E)
• If you are a foreign person with no direct presence in the U.S., use Form W-8BEN. You need to complete Part I, Lines 1-5, and then sign and date in Part III.
• If you are a foreign person/company with a U.S. trade or business, use Form W-8ECI or Form 8233. Please refer to form instructions at