What's in this article:
- What is a W-8BEN-E form?
- Who should complete the W-8BEN-E form?
- Why complete the W-BEN-E form?
- How do I complete the W-8BEN-E form?
- Where do I submit my completed form?
What is a W-8BEN-E form?
JSTOR requires a copy of the W-8BEN-E form for its records in order to reduce the royalty withholdings. We will not file the form with the IRS but the IRS may review it if JSTOR is subject to a tax audit. To ensure you receive the full extent of the revenue distributions we have apportioned to your organization, we ask you to complete the W-8BEN-E form.
This form will identify your organization as a “citizen” of a country with which the U.S. has a treaty and therefore either eliminate or reduce the requirement under U.S. tax law to withhold 30% of revenue distributions to non-U.S. entities. Unless we receive a completed form, we will be obligated to withhold 30% of your revenue distributions.
Who should complete the W-8BEN-E form?
Any book publisher based outside the United States is required to provide the appropriate IRS W-8 Form if they wish to get the benefits that are available under a US tax treaty executed with their country. Because JSTOR acts as a pass-through entity rather than the source of the sales, the United States IRS requires an individual form for each non-US publisher as documentation that they are the beneficial owner of the JSTOR payment.
If you are acting as a distributor/agent for a publisher located in a country that has a tax treaty with the US (regardless of the location of your own business) then you must provide a separate W-8BEN-E Form for that distributed publisher.
Before proceeding to complete the form, check to see if your country has a tax treaty with the US on the IRS website: https://www.irs.gov/pub/irs-utl/Tax_Treaty_Table_1_2019_Feb.pdf
Your withholding rate can be found in column 12 of the royalties table.
Why complete the W-BEN-E form?
Completion of this form means that JSTOR is not obligated to withhold 30% of royalties to you, but instead can withhold a lower amount under certain treaty arrangements, if you are eligible for this. In other words, we can share more revenue with you, if allowable under applicable treaty provisions.
How do I complete the W-8BEN-E form?
While we cannot complete this form for you, the following guidance is derived from the Official U.S. Internal Revenue Service instructions,
Please review before completing the IRS form (https://www.irs.gov/pub/irs-pdf/iw8bene.pdf) in consultation with your financial or tax advisor. Note that this guidance is for informational purposes only.
You are responsible for ensuring that the form has been completed accurately and truthfully.
Listed below are step-by-step instructions which may be used in reference with the IRS guidance on how to complete the form: https://www.irs.gov/pub/irs-pdf/iw8bene.pdf
Please complete the following:
- Line 1: Organization name
- Line 2: Country of incorporation
- Lines 4-5: Identification of your organization’s entity type
Please note that in Line 4, “Tax-exempt organization” should only be selected if your organization has that status under the US 501c regulations. If you do not have that status, “International Organization” may be the most appropriate box to select, though we suggest that you confirm with your own financial advisors.
In Line 5, where you must select a Chapter 4 FATCA status, most of our publishers will be able to select foreign government entities, international organizations, nonprofit organizations, or non-financial foreign entities (NFFE). Please check with your financial advisors if you are not sure which category fits your organization.
Residence address and mailing address (if different) (Lines 6 and 7);
Taxpayer identification number (Complete Line 8 (U.S. taxpayer number) if applicable AND 9b (foreign taxpayer number). Please note: 9b (Foreign TIN) is required.
This Part may be left blank unless you are a disregarded entity or branch of a Foreign Financial Institution.
Please complete this section in order to claim any applicable benefits of a tax treaty.
For additional information regarding the withholding rate benefits of tax treaties with the United States see Tax Table 1 at: https://www.irs.gov/pub/irs-utl/Tax_Treaty_Table_1_2019_Feb.pdf (Income Code Number 12 for Copyrights) or consult your financial or legal advisor.
These parts can be left blank unless you believe that your organization is a “Foreign Financial Institution (FFI)” e.g. if your organization is a bank.
Please complete the Part that corresponds to the status you selected in Part I, Line 5. You should leave blank the remaining Parts which do not apply. Many of our publishers are foreign government entities (Part XIII), international organizations (Part XIV), nonprofit organizations (Part XXII), or active non-financial foreign entities (NFFE) (Part XXV), but you should consult your financial or legal advisor as to which entity type applies to your organization.
Please sign and certify the form.
If you provide us with a copy of your certificate of incorporation or other document confirming your registration as an organization in your country, the W8-BEN-E form will remain in effect until a change in circumstances makes any information on the form invalid. Please advise us promptly if any information you have provided on the form changes.
If you do not provide such documentary evidence, it may be necessary to renew the form in three years.
Where do I submit my completed form?
Once completed, the W-8BEN-E form and any accompanying documentary evidence may be scanned and delivered to us via email (email@example.com) or contact us via email (firstname.lastname@example.org) if you are interested in mailing the form.