Form W-8BEN-E
IRS, Certificate of Foreign Status (Entities)
The certificate a non-US entity gives a US payer to confirm its foreign status, FATCA classification and any treaty claim.
What is Form W-8BEN-E?
Form W-8BEN-E does for a company or other entity what the W-8BEN does for an individual. A UK company receiving US payments hands it to the payer or withholding agent, not the IRS. It is longer because it carries both a treaty claim and a FATCA classification.
Foreign status for UK companies and funds
The form has two jobs. For withholding under chapter 3, it establishes that the entity is foreign and, if claimed, entitled to a treaty rate rather than the default 30%.
For FATCA under chapter 4, it classifies the entity: a foreign financial institution, an active non-financial entity, a passive one, or one of several other categories. The classification decides whether the payer must withhold under FATCA and what else it needs to know.
A UK company claiming treaty benefits must also state which limitation on benefits test it meets. The US-UK treaty only extends benefits to qualifying residents, such as publicly traded companies, companies owned mainly by qualifying residents, or those carrying on an active trade in the UK. Choosing the right test needs knowledge of the ownership chain. A company that meets none of them may still be foreign but will not receive the reduced rate.
Ownership matters in another way too. A passive non-financial entity must identify any substantial US owners, which catches a UK holding company owned by an American. A UK company owned by a US citizen is still a foreign entity and still signs the W-8BEN-E. A disregarded entity generally does not provide the form itself; its owner does. The form is typically valid on the same timetable as the individual version.
At a glance
- The payer or withholding agent, not the IRS
- Given to
- Chapter 3 treaty status and chapter 4 FATCA status
- Covers
- A limitation on benefits test identified
- Treaty claim needs
- Until the end of the third calendar year after signing
- Valid for
Figures are for the tax year stated in the official instructions linked below.
How we handle it
- International Tax
US reporting for owners of UK companies and partnerships, and for UK groups with US entities, including Forms 5471, 8858, 8865 and 5472.
- Business Tax Returns
US federal returns for companies, partnerships and LLCs with UK owners, UK parents or UK operations, prepared alongside the UK accounts.
- Treaty Relief
Claims under the US/UK income tax treaty, with Form 8833 disclosure, residence tie-breaker analysis and reduced withholding on US income.
- Sales Tax & Nexus
US state sales tax registration and filing for UK sellers with economic nexus, set against the UK VAT position on the same sales.
Where people go wrong
The Form W-8BEN-E errors we correct most often.
Who files it
- UK limited companies invoicing US customers or receiving US investment income
- UK partnerships and trusts receiving US-source payments
- Holding companies with American shareholders certifying FATCA status
- UK funds and financial institutions reporting a GIIN to US payers
01
Using the individual W-8BEN for a company, or the reverse
02
Claiming treaty benefits without identifying a limitation on benefits test
03
Omitting substantial US owners when the entity is a passive non-financial entity
04
Having a disregarded entity sign instead of its owner
Why US UK Tax Returns
Every form is prepared against the official instructions, and every position on it is one we can point to in the Code, the treaty or HMRC's guidance.
One File
US and UK returns prepared in the same engagement and reconciled line by line.
Primary Sources
Every position traced to the Code, the treaty, IRS instructions or HMRC guidance.
Scope First
Returns, forms, years and fee agreed in writing before work begins.
The Same People
The team that files this year carries the elections and credits into the next.
Questions we are asked
My US client wants a W-8BEN-E before paying my UK company. Why?
The client needs it to show why no US tax was withheld on the payment and to meet its own FATCA obligations. For services performed wholly outside the US, the income is generally not US-source and withholding does not apply, but the client still needs the form on file. Without it, the payer may withhold as a precaution.
I am an American who owns a UK Ltd. Does the company sign a W-8BEN-E or a W-9?
A company incorporated in the UK is a foreign entity for US purposes, so it generally signs the W-8BEN-E, even though its owner is a US person. The owner's status then appears in the FATCA section if the company is a passive entity. The owner separately has their own US reporting, such as Form 5471, for the company.
Which FATCA category is my trading company?
A UK company that mainly sells goods or services is usually an active non-financial foreign entity, based on the share of its income and assets that are passive. Holding companies, investment vehicles and some trusts often fall into other categories. The test looks at the previous year's income and assets, so the answer can change from one year to the next.
Primary sources
What this page says is drawn from the official material below. Read it yourself; we would rather be checked than trusted.
Last reviewed
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