W-8BEN - Links to IRS documents and tips for form editing

[Fiorenzo]

Some struggle with getting their W-8BEN accepted due to missing or wrong information. Here are a few links PLUS some tips on how to correctly fill in the confusing but crucial section PART II, Point 10.

Links to official IRS website and documents

W-8BEN Form (Oct. 2021 Revision): https://www.irs.gov/pub/irs-pdf/fw8ben.pdf 

Page with links to all tax treaties documents sorted by country: https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z 

How to find your country-specific treaty data and fill in the form correctly:

1. Find and open the most actual/newest tax treaty document between the US and your country
2. Search the Article that handles Royalties - in most cases, it's Article 12 (e.g. UK, IT)
3. Now you need to find the correct paragraph that defines the tax rate for royalties for artistic works that applies to your situation. Both tax rate and paragraph vary from country to country and in some cases, it can get confusing. For Italy (my country), the article is 12, paragraph 3, and the rate is 0%. For the UK it's article 12, paragraph 3, and the rate is 0%.
4. Download and open now the W-8BEN form and fill in your personal data - I won't address this part, because it's usually not a hassle.
5. In Part II / 10 fill in the fields as follows, according to the tax treaty document:
6. Article & Paragraph: Article & paragraph that describe your rate and situation, in the format: ART#(§#) - Examples: UK: 12(1) / IT: 12(3).
7. Rate (%): The % of the tax rate that has to be paid in the US.  If the document states that the taxes are fully paid in your own country, the US tax rate to fill in is 0. Otherwise, enter the rate defined in the document. Examples: Italy and UK: 0 (no taxes have to be paid in the US).
8. Type of Income: "Royalties for the use of artistic work" or similar
9. 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).
10. Sign the document either digitally or manually (print, sign, and take a pic) and send it via email to Zazzle either as a PDF or a well-readable JPG in the case of a manual signature.

Note that it can get a while until you receive a confirmation from Zazzle that the form has been accepted (even a month or longer). The rule no news = good news applies in this case.

Hope this helped.

[LittleStarsPrin]

Hi Fiorenzo,

First I would like to thank you for all this information you have shared and the effort that you took. So I do have a question about the form. We are filling it in as a corporation in Indonesia and are unable to download the form on Zazzle. Do you know if it’s supposed to be the same form as an individual ?

thank u so much in advance 

[Fiorenzo]

Always glad to help. According to the info on the form itself, if you're not an individual, you need to fill out the W-8BEN-E form. You can most certainly download it on the IRS website like the regular one, or just google for it. In regard to Zazzle, if there are issues, contact their support. In this specific case, I can't help much since I don't have experience. Good luck!

[Monalisa]

Does anyone know what the paragraph is for Article 12 in Canada? There are multiple paragraphs referring to artistic work and the link with the table from Eezy refers to paragraph 2 which does not reference artistic works at all. Confused!

[Fiorenzo]

The article/paragraph is 12(3) and the rate is 0%. I quote:

"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."

Link to the IRS treaty w/ Canada: https://www.irs.gov/pub/irs-trty/canada.pdf 

[onigbinde]

Fiorenzo, thank you for your tutorial, it is really super useful, for newbies like me, I wish I had seen it when I first submitted the form.

Could anyone please tell me what should be filled in for Ukraine?

Here is the document https://www.irs.gov/pub/irs-trty/ukrain.pdf 

Here is article 12

And here is another interesting article 17, it doesn't seem to have any significance, but just in case I attached it too 😊.

[Fiorenzo]

You're welcome. In your case, the article is 12(2) and the rate is 10%. Article 17 doesn't apply to us. For the rest, go with my sample texts. If there are issues, let me know and we can look for solutions. Just so you know, if you don't get an answer after submission, this is usually a good sign.

Good luck and all my best wishes. I hope you and your loved ones in Ukraine are not in imminent danger and safe. 

[onigbinde]

Can you tell me, please, if you know how the tax will be withheld? Will 10 percent of the amount simply be withheld upon payment?

Thank you very much for your quick and helpful reply and your good wishes.
Unfortunately, there are no safe places in our country now, but even danger is something you gradually get used to, so it's ok.

[Fiorenzo]

As far as I know, it will be withheld at payment. I have no deduction since I live in Italy, so not 100% sure how it is handled.

I know there are no real safe places anywhere, that's why I used the wording "imminent danger". So you know, I have good FB friends living near Kyiv as well as from Kharkiv. Take care!

[onigbinde]

Thank you so much for your support

[Fiorenzo]

Always. No ifs, no buts.

[Jesshartist]

Thanks so much for your help Fiorenzo!

Now I wish Zazzle would do their part and pay... 😑

[Fiorenzo]

Always a pleasure. I assume, it finally worked out for you? What exactly didn't Zazzle pay? If you mean the withheld 30% due to the missing form, I'm not sure if they do credit the difference on past payments, since it's a tax issue. I guess not, at least not affected payments of past tax years.

[simplystunningp]

Thank you so much. This line worked for me after attempting 15 try. I genuinely appreciate your help. 

I am from India so anyone from India can use this info.

Type of Income: "Royalties for the use of artistic work"
Additional Conditions: "Creation of artistic works (designs) sold on Zazzle online web stores.

[Fiorenzo]

Glad it worked. Good luck with your store!

[Pasindu]

I believe I should enter 12(4), but I am not sure about the rate. If you could check this, it would be a big help. My country Sri Lanka

 

[Fiorenzo]

It's 12(2) and the rate is 10%. Paragraph 2 refers to paragraph 4a which refers to royalties. Good luck!

[Pasindu]

Thanks a lot!

I’m also concerned about those numbers. Are they necessary, or can I leave them blank?

[Fiorenzo]

Glad to help. 5 and 7 blank, in 6a insert your domestic tax ID or social number if you have something like that in Sri Lanka. See my update about this (new) part (copy and pasted it):

UPDATE JAN 2024:

The W-8BEN comes now with line 6 (holding your national tax ID) split in 6a and 6b. Fill in your national tax ID or social number in 6a and leave the box in 6b unchecked. If you don't have such a number in your country, leave 6a blank and check the box in 6b (note: your country must figure in the IRS exemption list).

[Anne-Marie]

Your explanation is highly appreciated. Sadly I did not find this article last year when I submitted my W8-form and it was approved with the normal tax rate of 30%. But, given that I only started to receive any income from Zazzle after I created my stores (last year also), I did not lose to much (give or take). Now, with your explanation, I'll resubmit my tax form with the tax rate of 10% which is applicable for Romania. So thanks again.

[Fiorenzo]

Glad I could help. Good luck!