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Developer
Posts: 1,008
Registered: ‎12-12-2010
My Device: Passport (Red Limited Edition)
My Carrier: Mobile Vikings

W8-BEN registration for European corporations

Hi everybody,

 

who needs to submit a W8-BEN form? The latest e-mail mentions that this form is only for non-US content providers selling into the US, but it seems that it is only for residents. Can anyone give some more information?

 

Best regards 

-------------------------------------------
BlackBerry Certified Builder for Native Application Development -- Proud member of the Belgian BlackBerry Developer group
Samples: Park in Ghent
Feeling generous? Nominate me for BB Elite member!
Developer
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: W8-BEN registration for European corporations

Hm, the same applies to form NR-301 (Non-Canadian Content Providers Selling into Canada), do we need to submit it as EU vendors?

 

Sigh, I wish someone from RIM explains it plain and simple what we need to do... I read through that 30-pages document and my head is near to explode. :Eek:



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
Developer
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: W8-BEN registration for European corporations

Here is the help from Vendor portal:

 

If you are a non-US resident and intend to sell any apps in the US marketplace in the future, you must complete and upload a Form W-8. For most vendors, the applicable form is Form W-8BEN; however, please read the description at the top of Form W-8BEN carefully to ensure it is the correct form for you or your entity type.

If you are a non-Canadian resident individual or corporation and intend to sell any apps in the Canadian marketplace in the future, you must complete and upload Form NR-301 (Partnerships should use Form NR-302 and hybrid entities should use Form NR-303).

If these forms are applicable to you as described above, failure to complete these forms may result in the application of the highest rate of withholding tax on any sales to consumers in these two respective countries.

As far as I remember when I registered with Mobihand (two years ago), they required the same W8 form. First I didn't send it and they cut 30% of my earning as tax, after I sent the form, the tax cut was 5% (it depends on your country and the tax agreement between US and your country). However to fill that form you need to register with IRS (International Revenue Service) and to get EIN number (US Taxpayer ID Number). 

 

This is the infro from Mobihand regarding the Tax information

 

INTERNATIONAL CONTENT PROVIDERS/DEVELOPERS:

Many foreign Content Providers/Developers are exempt from withholding tax or eligible for reduced withholding tax rates if they complete Form W-8 with accurate information and are residents of a country with a tax treaty with the US. MobiHand is required to report all royalty payments to the United States Internal Revenue Service (IRS). If no exemption or reduction is available, a 30% withholding tax will apply to royalties paid to you. Royalties are the amounts that we pay to you when we sell your content in our stores. Amounts that we pay to you as your share of your content sold in a MobiHand shopping cart on your site, and amounts paid for referrals in our affiliates program and our distribution partner program are not royalties and are not subject to the tax. All withheld taxes will be paid by MobiHand on your behalf to the IRS. You may be eligible to receive a tax credit equivalent to those amounts to reduce your tax obligation in your country of residence.

To help you avoid unnecessary taxes, MobiHand will delay payments to you until you have either completed the tax requirements or instructed MobiHand to withhold tax at the maximum 30% rate. This can be done by entering "30% TAX" into the tax ID field on your account profile.

Please select and complete one form and fax it to 1-650-587-0005.

    Person or company outside of the United States with no business operations in the United States please complete Form W-8 BEN . See Instructions. Form W-8 BEN with lines 1, 3, 4, 5, 6, 9a and signature completed will generally be sufficient and appropriate for most International partners. Line 6 REQUIRES a US taxpayer identification number. If you do not have one, please follow the instructions on this page in the section entitled "How to Obtain a US Tax ID Number". Please enter your MobiHand partner number on Line 8 to help us match the form to your account.

    Person or company outside of the United States with employees working in this business in the US or equipment owned by you and used in this business in the United States - please complete FORM W-8 ECI. See Instructions

List of Tax Treaties:

The following countries have tax treaties with the United States. Payments to these countries are subject to US taxes that range from 0% to 15% if you complete the tax documentation and provide a US Tax ID number.

Australia
Austria
Bangladesh
Barbados
Belgium
Bulgaria
Canada
China, People's Republic of
Commonwealth of Independent States
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Kazakstan
Korea, Republic of
Latvia
Lithuania
Luxembourg
Mexico
Morocco
Netherlands
New Zealand
Norway
Pakistan
Philippines
Poland
Portugal
Romania
Russia
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
Trinidad & Tobago
Tunisia
Turkey
Ukraine
United Kingdom
Venezuela

If you are in a country that is not on this list, please notify us by sending a message to "Partner Payments" using the "Help" link at the top of this page and we will begin payments with 30% tax. We will not need documentation or a Tax ID number from you.

How to Obtain a US Tax ID Number

If you do not have a United States taxpayer identification number, you may obtain an EIN (a type of tax ID available for this purpose) from the United States Internal Revenue Service (IRS) by using Form SS-4 (pdf). Form SS-4 Instructions (pdf) are a separate document. If you follow the simplified instructions below, you may not need to read the official instructions. We have identified the specific steps that you will need to follow. After you have gathered the information for the form, you can use it to obtain an EIN with a single phone call or by mail.

As stated on the second page of Form SS-4, you need to provide only the following information when your purpose for obtaining a number is to comply with IRS withholding regulations:

Line Numbers:
1 - 5b Name and address. Line 1 should be the same as the Legal Name on your Profile.
7a Name of person in charge ONLY IF the legal name is a corporation or partnership.
7b Tax ID number of person in charge (this is optional).
8a Is your business a "LLC" (a specialized form of company sometimes used in the US)?
8b, 8c LLC information ONLY IF 8a is "yes".
9a Type of entity (if sole proprietor, you may ignore the request for SSN)(if corporation, enter "Form W-8BEN").
9b Place of incorporation ONLY IF you are a corporation.
10 Check the box for "Compliance with IRS withholding regulations".
18 Ever previously applied for a EIN?

Signature and date. We strongly recommend that you use the phone to obtain your EIN.

If you want to use the phone, you should be prepared to answer the same questions as on the form. The IRS can normally provide your EIN to you during the phone call. The phone number is: +1-267-941-1099 between 7:00 am and 11:30 pm Eastern Time

If you want to use the fax method, you should fax the completed Form SS-4 and the IRS will normally will mail your EIN to you within 4 - 5 weeks. The fax number is: +1-267-941-1040. This method is recommended only if you cannot speak English or cannot complete a phone call to the United States.

Need more information?

A complete description of the requirements for Non-Resident Alien Withholding Tax is available in Publication 515 (pdf) published by the US Internal Revenue Service. In addition, we will try to answer your questions if you send them to "Partner Payments" using the "Help" link at the top of the page.

Note: All tax information provided in this website is simplified, incomplete and made available by MobiHand only to help you understand how MobiHand's legal obligations may effect your payments. This information should not be deemed to be legal or tax advice. You are solely responsible for selecting and accurately completing the appropriate form and for consulting with your legal or tax advisors to the extent you consider necessary to help you comply with applicable laws. 

 



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
Developer
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: W8-BEN registration for European corporations

Probably the best approach for the time being is just to wait for some official clarification...



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
Developer
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: W8-BEN registration for European corporations

OK, I got an official answer, read below :smileyhappy:

 

1) I'm in European Union, so I need to upload the
W8/W8-BEN form for US sales and form NR 301 for sales in Canada in order
to avoid the maximum tax applied, is that correct?

        Yes, you will need to fill out the respective tax forms in order to avoid paying the highest tax rate for the US and Canada.

2) Do I need to apply for EIN number to IRS (International Revenue
Service) in order to fill the W8/W8-BEN form?

        No, you do not need to apply for an EIN number to fill out the W8 form.

3) Do I need to apply for Canadian tax number in order to fill the NR 301
form? (I don't have tax number in my country)

        No, you do not need a Canadian tax number to fill out the NR301 form.


"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
Developer
Posts: 1,008
Registered: ‎12-12-2010
My Device: Passport (Red Limited Edition)
My Carrier: Mobile Vikings

Re: W8-BEN registration for European corporations

Thank you for sharing this information:-)

-------------------------------------------
BlackBerry Certified Builder for Native Application Development -- Proud member of the Belgian BlackBerry Developer group
Samples: Park in Ghent
Feeling generous? Nominate me for BB Elite member!