Form W-8BEN-E: how to fill it in for a foreign company

When a US client pays a company outside the US, it usually asks for Form W-8BEN-E. The form is long, but a typical small operating company completes only a few parts. This guide shows which, and how to avoid the common errors that lead to 30% withholding.

By Awais Jameel, Chartered Accountant. Reviewed by Hamza Fida, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

Form W-8BEN-E instructions, in short: the form is completed by a foreign entity, such as a company formed outside the US, to certify its foreign status to a US payer. Most small operating companies tick corporation on line 4 and active NFFE on line 5, then complete Part XXV. To claim a treaty rate, complete Part III. The form generally stays valid until the end of the third year after signing.

At a glance

Who completes it
Foreign entities receiving US payments
Not for
Individuals, who use W-8BEN; US entities, who use W-9
Chapter 3 status
Usually corporation, line 4
FATCA status
Usually active NFFE, line 5, then Part XXV
Treaty claim
Part III, including limitation on benefits
Validity
Until the end of the third calendar year after signing
Form W-8BEN-E: how to fill it in for a foreign companySteps: 1. Part I, lines 1 to 3; 2. Line 4: chapter 3 status; 3. Line 5: FATCA status; 4. Lines 6 to 9; 5. Part XXV; 6. Part XXX.THE PROCESS AT A GLANCEForm W-8BEN-E: how to fill it in for a foreigncompany1Part I, lines1 to 3The company's legalname, country ofincorporation2Line 4:chapter 3statusUsually corporation3Line 5: FATCAstatusUsually active NFFEfor an operatingbusiness4Lines 6 to 9Permanent residenceaddress, mailingaddress, US TIN ifany, and theforeign taxidentifying number5Part XXVThe active NFFEcertification6Part XXXSignature by anauthorized officer,with name and dateChecked against official sourcesTax BakersForm W-8BEN-E: how to fill it in for a foreign companySteps: 1. Part I, lines 1 to 3; 2. Line 4: chapter 3 status; 3. Line 5: FATCA status; 4. Lines 6 to 9; 5. Part XXV; 6. Part XXX.THE PROCESS AT A GLANCEForm W-8BEN-E: how to fill it infor a foreign company1Part I, lines 1 to 3The company's legal name, country ofincorporation, and the name of anydisregarded entity receiving the payment2Line 4: chapter 3 statusUsually corporation3Line 5: FATCA statusUsually active NFFE for an operatingbusiness4Lines 6 to 9Permanent residence address, mailingaddress, US TIN if any, and the foreign taxidentifying number5Part XXVThe active NFFE certification6Part XXXSignature by an authorized officer, withname and dateChecked against official sourcesTax Bakers
The process at a glance: 1. Part I, lines 1 to 3; 2. Line 4: chapter 3 status; 3. Line 5: FATCA status; 4. Lines 6 to 9; 5. Part XXV; 6. Part XXX.

Who uses Form W-8BEN-E?

PayeeForm
Foreign company, such as a private limited company abroadW-8BEN-E
Foreign individualW-8BEN
US LLC or corporationW-9
US single-member LLC owned by a foreign personThe owner's W-8BEN or W-8BEN-E, since the LLC is disregarded
Foreign person with income effectively connected with a US businessW-8ECI

See W-8BEN vs W-8BEN-E vs W-8ECI.

Which parts does a typical small company complete?

  1. Part I, lines 1 to 3

    The company's legal name, country of incorporation, and the name of any disregarded entity receiving the payment.

  2. Line 4: chapter 3 status

    Usually corporation.

  3. Line 5: FATCA status

    Usually active NFFE for an operating business.

  4. Lines 6 to 9

    Permanent residence address, mailing address, US TIN if any, and the foreign tax identifying number.

  5. Part XXV

    The active NFFE certification.

  6. Part XXX

    Signature by an authorized officer, with name and date.

Part III, the treaty claim, is added only if a treaty benefit is claimed.

What is an active NFFE?

A non-financial foreign entity for which less than 50% of gross income in the previous year was passive income, and less than 50% of its assets produce or are held to produce passive income. A company selling services or goods usually qualifies. A company earning mainly dividends, interest or rents is usually a passive NFFE, which must identify its substantial US owners, or certify that it has none, in Part XXVI.

How do you claim a treaty benefit?

In Part III, give the treaty country on line 14a and tick the limitation on benefits provision that the company meets on line 14b. On line 15, give the article, the rate and the type of income where a special rate is claimed. Payments for services performed entirely outside the US are generally foreign-source and not subject to US withholding anyway, so many service companies need no treaty claim. See tax treaties and your US LLC.

What are the common mistakes?

  • A company using Form W-8BEN, which is for individuals.
  • Leaving line 5 blank or ticking more than one FATCA status.
  • Omitting the foreign tax identifying number without an explanation.
  • Claiming a treaty without ticking a limitation on benefits provision.
  • A US LLC filling in a W-8BEN-E in its own name.

What does the payer do with it?

The payer keeps the form on file to support paying you without withholding, or at a treaty rate. It does not go to the IRS. If you receive payments that are reportable, such as US-source dividends or royalties, the payer reports them on Form 1042-S, using the details from your form, so make sure the name and tax identifying numbers match your own records exactly.

How long is it valid?

Generally from the date signed until the last day of the third calendar year after that, unless a change in circumstances makes it incorrect, in which case provide a new form within 30 days. Without a valid form, the payer may have to withhold 30%. See the 30% withholding explained.

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Questions people ask

Who fills in Form W-8BEN-E?

Foreign entities, such as companies formed outside the US, that receive payments from US payers.

What FATCA status should a small foreign company choose?

Usually active NFFE, if less than half its income and assets are passive.

Does a US LLC owned by a foreigner use Form W-8BEN-E?

Not in its own name. A disregarded US LLC uses its foreign owner's W-8BEN or W-8BEN-E.

How long is Form W-8BEN-E valid?

Generally until the end of the third calendar year after it is signed, unless circumstances change.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: About Form W-8BEN-E
  2. IRS: Instructions for Form W-8BEN-E
  3. IRS Publication 515: Withholding of Tax on Nonresident Aliens and Foreign Entities

Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.

Foreign-owned and non-resident companiesW-8BEN vs W-8BEN-E vs W-8ECI: which form to giveFederal tax formsForm W-8BEN: how to fill it inForeign-owned and non-resident companiesThe 30% withholding on US-source income explained

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This guide is general information. It is not tax or legal advice for your situation.