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May 2022 onwards - changes to the W-8BEN and W-8BEN-E tax forms

The IRS updated W-8BEN and W-8BEN-E reports as of May 2022. As a result, updates to these forms have been made in Tipalti's Tax module.

The IRS changes for May 2022 are:

  • W-8BEN
    1. Part I: Identification of Beneficial Owner
      1. Line 6b: Added check box "Check if FTIN not legally required"
    2. Part III: Certification
      1. Added check box "I certify that I have the capacity to sign for the person identified on line 1 of this form"
  • W-8BEN-E
    1. Part I: Identification of Beneficial Owner
      1. Line 4: Has changed from "Government" to "Foreign Government - Controlled Entity" and "Foreign Government - Integral Part"
      2. Line 9c: Added check box "Check if FTIN not legally required"
    2. Part III: Claim of Tax Treaty Benefits
      1. Line 14b: Added type of limitation on benefits: No LOB article in treaty (moved from "other" check box)
    3. Part XXX: Certification
      1. Text updates
      2. Moved the check box above the signature line: "I certify that I have the capacity to sign for the entity identified on line 1 of this form"

Using the W-8BEN and W-8BEN-E in Tipalti

W8BEN
  1. Part I: Identification of Beneficial Owner - We added a check box "Check if FTIN not legally required" below the FTIN line
  2. Part III: Certification - Added a selection for the payees to state if they are signing the form for themselves or for someone else

The new check box ("I certify that I have the capacity to sign for the person identified on line 1 of this form") will open only if the payees are signing on behalf of someone else, and in this case, supporting documentation will be required as specified here:

  • I am signing for myself.
  • I am signing on behalf of someone else, under power of attorney. (POA document is required.)
  • I am signing on behalf of someone else. (Text explanation is required, for signing on behalf of someone else without POA.)

See additional documents for more information.

W8BEN-E

Part I: Identification of Beneficial Owner

  1. Under "Other", we replaced "Government" item with "Foreign Government - Controlled Entity" and "Foreign Government - Integral Part".
  2. We added a check box "Check if FTIN not legally required" below the FTIN line.

Part III: Claim of Tax Treaty Benefits - We took out the item "No limitation on benefits provisions in treaty (N/A)" from "Other" selection.

Part XXX: Certification

  • Text changes

Part/ paragraph

Current Text

New text
1 Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I further certify under penalties of perjury that: No change was made to current text.
2 The entity identified on line 1 of this form is the beneficial owner of all the income to which this form relates, is using this form to certify its status for chapter 4 purposes, or is a merchant submitting this form for purposes of section 6050W, The entity identified on line 1 of this form is the beneficial owner of all the income or proceeds to which this form relates, is using this form to certify its status for chapter 4 purposes, or is submitting this form for purposes of section 6050W or 6050Y,
3 The entity identified on line 1 of this form is not a U.S. person, No change was made to the current text.
4 The income to which this form relates is: (a) not effectively connected with the conduct of a trade or business in the United States, (b) effectively connected but is not subject to tax under an income tax treaty, or (c) the partner’s share of a partnership's effectively connected income, and This form relates to: (a) income not effectively connected with the conduct of a trade or business in the United States, (b) income effectively connected with the conduct of a trade or business in the United States but is not subject to tax under an income tax treaty, (c) the partner’s share of a partnership’s effectively connected taxable income, or (d) the partner’s amount realized from the transfer of a partnership interest subject to withholding under section 1446(f); and
5 For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions. No change was made to the current text.
6 Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which the entity on line 1 is the beneficial owner or any withholding agent that can disburse or make payments of the income of which the entity on line 1 is the beneficial owner. I agree that I will submit a new form within 30 days if any certification on this form becomes incorrect. No change was made to the current text.
7 I have the capacity to sign for the entity identified on line 1 of this form. This check box was moved above the signature line.
  • Moved the "I certify that I have the capacity to sign for the entity identified on line 1 of this form" check box up, above the signature line.