How to fill the Part II, line 10 in W-8BEN

[LoiDiep]

Hello,
Thank you very much for reading and replying to me. I appreciate all the help
I'm a designer from Poland 🇵🇱 that earn royalty from my art designs on Zazzle. To get my royalty, I have to fill in Part II, line 10 of W-8BEN form but it's really difficult for me 😥. 
Does anyone know the exact number or letter I have to fill in? I'm very grateful for any answers ❤️☀️😘❤️

[JocelynMB]

In Part II on line 10 I put: 0% and 12(2) and copyright royalties
Then, on the explanation field (which isn't big enough too lol) I put: Beneficial owner is a resident of Canada, earning copyright royalties for the use of artwork and is not subject to tax under the US/Canada tax treaty terms of 0% withholding rate for image related copyright royalties. 

Something in it must not be written right I guess.

[Fiorenzo]

Well, it seems you may give it another try with my variant, which also worked 3 times now: "Creation of artistic works (designs) sold on Zazzle online web stores on a range of goods."

Or use LoiDiep's baseball bat technique 😉

In any case, don't give up, it's your right to get it lowered to 0%. 

[JocelynMB]

Still no acceptance. It also looks like copyright royalties are subject to 10% not 0% withholding tax, under 12(2) in the treaty for US/Canada ??

[Fiorenzo]

For Canada it is Article 12(3), NOT  12(2), and the rate is 0%. Here's the related text (taken from tax treaty of 1980):

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may
be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State in which they arise, and
according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of such royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
3. Notwithstanding the provisions of paragraph 2, copyright royalties and other like payments in
respect of the production or reproduction of any literary, dramatic, musical or artistic work (but. not including royalties in respect of motion picture films and works on film or videotape for use in connection with television) arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall he taxable only in that other State.

This may be the problem. Good luck!

[JocelynMB]

Omg, ok, I had it saved as 12 (2) ty! Ugh lol!

[Fiorenzo]

Happens to all of us 😉 The data should be correct now, and our text examples have also been approved, so it should work this time.

[TMGEE]

Thank you again, Waterart!

[waterart]

You're welcome, hope it went well. This form trips up everyone who needs to submit one to Zazzle because they are so fickle about the wording used.

[CapriWedding]

I would like to thank you very much for posting the W8 form completion here for all those who may be facing the same problem. and I read that fortunately for you the form was accepted.
It will definitely help those who maybe have the same difficulties.
I have submitted my form several times and it still has not been accepted.
They sent me the proposal to pay 30% tax. I am Italian and I have filled exactly what you stated:

Income Type: "copyright royalties"
Additional Conditions : Beneficial owner is a resident of Italy earning copyright royalties for use of artwork and not subject to tax under US/Italy tax treaty terms of 0% withholding rate for art related copyright royalties.
The article and paragraph number : 12(3).

My form was not accepted.
I don't know what to write anymore.
I am stuck without the ability to understand.

[TMGEE]

You are a saver, Fiorenzo! Thank you so much. I'm from Canada and was struggling regarding what to write exactly, especially on the Additional Conditions part. Thanks a bunch for saving us headaches, and Happy New Year!😀

[Fiorenzo]

Yeah, that additional part is a killer. Most welcome, just giving back what I got myself. A happy and successful 2023 back to you, from Italy to Canada 🙂

[JocelynMB]

OMG Yay! I finally got it correct and it is now accepted and in the final process!
Thanks for all your help, everyone!!!!! I can now release the hold on my monthly payments lol!

[Fiorenzo]

Happy it worked out (finally). Know that feeling too well, LOL. Happy designing - and earning!

[Artfulz]

Hey, I also got a mail regarding this issue. I am from India, I filled in that section royalties for selling graphics design online and 15% withhold tax. I found that information on yotube from an Indian youtuber who do freelancing for shutterstock. Did I do some mistake while filling the form. I also sent email to get help from zazzle support team, but it will gonna take one month or more. Please help me as they said to revise and submit again.

[Fiorenzo]

Check my guide here, this should work: https://community.zazzle.com/t5/share-your-tips-tricks/w-8ben-links-to-irs-documents-and-tips-for-fo... 

For India, the rate is 15% and the corresponding article and paragraph is 12(2)(a)(ii). You find the IRS tax treaty for India here: https://www.irs.gov/pub/irs-trty/india.pdf 

Fill in the fields as described in my guide. Good luck!

[Artfulz]

Thank you so much for helping me in this matter. I filled all the details as you stated in comment, hoping to be accepted my form by them this time. As always zazzle community is helpful to anyone who needs help. Thanks to you again to provide such a quick resolution.

[Fiorenzo]

Most welcome. I hope it works this time. So you know: If you don't get an answer from Zazzle it's usually good news.

[CapriWedding]

Hi Fiorenzo

please, I read this important comment of yours in help to the Polish New Contributor III  LoiDiep, in relation to the exact filling of the W8 -ben form.

Could you please help me as well? I sincerely hope that as Italians both, since they have accepted your form, I can hope that it is for me as well.
I sent my completed form several times, it was never accepted.
The first time I sent it, I filled it out exactly as they accepted it the first time. Instead, the first time they accepted it, now they didn't.
I had no chance to understand it.
Submitted my form other times, no good.

here the answer, always the same , if I want to accept the 30% withholding:
”

We have received your form and it is filled out enough to be accepted for your account under the Standard IRS tax rate of 30%. However, we need further information before we can send your form for processing.

If you would like to go fill out the form further to receive a lower tax rate according to tax treaty between the USA and your country of residence, please provide the following information: 

- Please note the provided paragraph doesn’t apply to the services that you are applying on Zazzle and there may be another part of the paragraph that pertains to the work that is being performed. If you have any specific questions you should consult with your tax professional.

Please see the following instructions that might help you with this part of the form. https://www.irs.gov/pub/irs-pdf/iw8ben.pdf

If you do not wish to complete part two of the form, you have the option of accepting the Standard IRS tax rate of 30% which will be deduced from your payments. This requires no further updates to the form, simply email us back to let us know you accept the standard rate.

Alternatively if you want to avail of the lower tax rate resubmit your corrected form by replying directly to this email."

My last submission I filled:
Income Type: "copyright royalties"
Additional Conditions : Beneficial owner is a resident of Italy earning copyright royalties for use of artwork and not subject to tax under US/Italy tax treaty terms of 0% withholding rate for art related copyright royalties.
The article and paragraph number : 12(3).

It was not accepted.
I read your compilation: "Creation of artistic works (designs) sold on Zazzle online web stores on a range of goods."

Please Fiorenzo, by filling as you suggested, in your opinion should I refer to the Us/ Italy treaty or not?
Again I did not understand why the form was not accepted, I specified that it is Royalties for art work, that I fall as beneficial owner under the treaty fiscle US/ Italy and that the rate is precisely 0%.

I really thank you if you can help me because I am stuck and I don't know what to do anymore.
Anyone who asks for help in this regard, the post is of course open to all.

[Fiorenzo]

The Article and Paragraph for Italy is, according to the IRS treaty, 12(3) and the rate is 0%. Some tables mention 12(2) but in my understanding, this is wrong, since the royalties for artistic works are mentioned in 12(3). Here's a screenshot of the relevant part of the treaty:

For the other fields in Part II/10 fill in exactly what I wrote in my other post, as follows (copy-pasted):

1. Type of Income: "Royalties for the use of artistic work" or similar
2. Additional Conditions: This part is where most struggle and that causes most rejections. Write something like "Creation of artistic works (designs) sold on Zazzle online web stores on a range of goods." (worked for me).

The W-8BEN comes since 2024 with line 6 (holding your national tax ID) split in 6a and 6b. Fill in your Codice Fiscale in 6a and leave the box in 6b unchecked.

This should work. If not, reply again and post a screenshot of your form (blacken all your personal data!) so I can check it out.

Good luck!

[CapriWedding]

Hi Fiorenzo

Tell you that You are fantastic I think it is really the least!
Your help and also your guidance you cannot imagine how important they are.
I also thank you immensely for the fact that you have perfectly highlighted for me the specification so wanted to be added in the form. So the clarification, very important for me to understand.
I thank you and I am grateful for your valuable help, your valuable guidance, your valuable clarification.
Just yesterday morning I submitted the new form, I don't know if it was successful.
If you advise me to wait, I will wait.
In the meantime I will update you how it goes, and in case I have problems like now on the messaging, I will gladly do it here.

My big Thank You, always and again

[Fiorenzo]

Wait. If you don't hear anything, it is usually a good sign. You get email feedback if something is wrong or missing, but you may not get anything if all went through. Good luck!

[CapriWedding]

Thank you very much indeed as I know something I'll update you, I'll tell you everything.
Thank you also for your great patience, you really are a great guide and I honestly think you are for all of us, your help is really valuable🌞

[waterart]

Another source that can be checked for withholding rates is https://eezycontributors.zendesk.com/hc/en-us/articles/360040283911-What-is-the-Withholding-Rate-For...

 For type of income put "copyright royalties", and for why you meet the conditions you can write something like "copyright royalties are for use of artistic work" Pozdrowienia z Kanady

[Fiorenzo]

Very good link, thank you! I will add it to my tips and tricks post, so we have all the practical information in one spot.

[TMGEE]

Thank you too, waterart. I'm new to Zazzle and so glad to see the community here is willing to help 🙂