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 www.irs.gov for further details on how to complete. If a form W-8 ECI or 8233 is provided, withholding will not apply as long as the form is properly completed and a valid US TIN number is provided. Please note, however, that payments made to you will be reported to you and to the IRS annually on forms 1042-S and 1042 respectively.
• If you are a foreign entity with no direct presence in the U.S., generally use Form W-8 BEN-E. You need to complete all of Part I, except for Line 5. It is important that you also complete and sign and date Part XXIX.
• If you are a foreign flow through entity (i.e. partnership) with no direct presence in the U.S., use Form W-8 IMY. You will need to complete all of Part I, except for Line 5. It is important that you also complete any referenced section as indicated in your selection for Line 4. Finally, sign and date Part XXVIII. In accordance with the instructions to the form, unless you are a withholding foreign partnership, you must also provide the relevant W-8 and/or W-9 forms for each partner/owner. If there is a U.S. partner/owner, please confirm allocation of payments to such U.S. partners/owners to ensure appropriate 1099 reporting.
Please note, if payments Western Union makes to you are determined to be of a type that is U.S. sourced fixed, determinable, annual or periodic income, we will need to obtain further details from your company and will require an updated Form W-8 with additional information completed (i.e. FATCA status and Treaty claims).
To avoid having your invoice payments delayed, please complete the appropriate Form W-8 as described above and send the original to the address listed below and a pdf copy to Internationalvm@westernunion.com.
You (or an authorized person, in the case of an entity) should be sure to sign and date the form before returning it. For further information, please refer to the forms and instructions on the IRS website at www.irs.gov.
The signed original Form W-8 (whatever type) should be mailed to the following address:
UAB WESTERN UNION PROCESSING LITHUANIA
ATTN: EGLE GALBUOGYTE
P.D. 5503
42 – ASIS PAŠTAS
LT – 08010 VILNIUS
LITHUANIA
Please also send a pdf copy of the form to the following e-mail address. (Please note, originals still need to be mailed to the address noted above.)