A W-8 BEN form, officially known as the “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals),” is a document issued by the United States Internal Revenue Service (IRS). It is used to determine the foreign status of non-resident aliens for tax purposes.

Purpose of a W-8 BEN Form

The IRS imposes taxes on all income paid by US companies. Individuals residing in the US, holding a US Green Card, or spending a significant portion of the year in the US are subject to income tax. However, non-citizens residing outside the US are classified as Non-Resident Aliens (NRAs) and are taxed at a different rate.

Certain countries have tax treaties with the US that grant their citizens and residents a lower tax rate. Non-Resident Aliens earning income in the US must establish their country of residence. The W-8 BEN form allows the worker to claim benefits under any existing tax treaties, enabling the employer to apply the corresponding tax withholding rate.

When MiProfile Requests Form W-8 BEN from an Affiliate

MiProfile requests the Form W-8 BEN from foreign Affiliates who meet specific criteria before compensating them for services rendered. Affiliates must:

• • Be a non-citizen
  • Not be a resident of the US
  • Not hold a US Green Card
  • Be the beneficial owner of compensation for work done

How to Complete a W-8 BEN Form

Upon MiProfile's request for completion of a W-8 BEN form, the Affiliate should follow these steps:

1. 1. Provide the requested information on the form, including full name, citizenship, mailing address, US Taxpayer Identification Number (ITIN) or Social Security Number (SSN), Foreign Tax Identifying Number, date of birth (MM/DD/YYYY), foreign country for tax benefits, and applicable withholding rates.

   2. Sign and date the form.

   3. Upload the completed form to MiProfile | Hub KYC Compliance.

Responsibility for Providing the W-8 BEN Form

MiProfile is responsible for requesting and collecting the W-8 BEN form from Affiliates.

Who Needs to Fill Out a W-8 BEN Form?

Any Affiliate who is a non-resident foreign person and the beneficial owner of income subject to withholding must complete Form W-8 BEN.

Difference Between W-8 and W-8 BEN

The W-8 series comprises five forms used by foreign individuals and businesses to claim exemptions. The W-8 BEN specifically establishes foreign status for tax purposes for Affiliates.

Where to Upload a W-8 BEN Form

Affiliates should upload completed forms to MiProfile | Hub. Login to your account, click "Settings" on the top bar, navigate to "KYC Documents," and select "Upload New Document."

Expiration of a W-8 BEN Form

A W-8 BEN form expires every three years.

Consequences of Not Submitting a W-8 BEN Form

For Affiliates, failure to submit Form W-8 BEN may result in a 30% tax rate deduction, even if eligible for a lower rate. MiProfile must deduct the standard 30% withholding tax from payments to non-compliant Affiliates.

Managing International Affiliates and Compliance

MiProfile ensures compliance when managing international Affiliates by partnering with an employer of record (EOR) like Remote to assist.

Best Payment Methods for MiProfile Affiliates

MiProfile can establish a local legal entity in the hiring country or work with an EOR to hire and onboard international Affiliates efficiently. Working with an EOR allows MiProfile to streamline the process and avoid legal complexities associated with establishing a legal entity abroad.