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

The IRSInternal Revenue Service 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 EntityAn entity can be a subsidiary, division, business unit, brand, etc. of your organization. Entities can have similar or different AP processes and workflows." 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 LOBLimitation on Benefits 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:

1. I am signing for myself.
2. I am signing on behalf of someone else, under power of attorney. (POA document is required.)
3. 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

1. 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.

   

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

3. Part XXX: Certification

   1. 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.

   2. 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.