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Under Special Rates and Condition in Part 2 - Claim of tax treaty benefits of W8-BEN form, I am not aware of what I can fill in the following fields:

The beneficial owner is claiming the provisions of Article and paragraph ___________
of the treaty identified by the country of citizenship above to claim a 
________
% rate of withholding on (specify the type of income):__________

Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding
Treaty Reason: ________________________

I am a software developer hired on a contractual basis and they want me to fill this form. Kindly help.

Thanks a lot.

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    If you are an alien (e.g., citizen of India) but US resident for tax purposes -- see pub 519 chapter 1 -- you must pay 'resident' US tax, just like a citizen, and can't use W-8BEN. If you are nonresident and present less than 90 days per year, contractor income is exempt from US tax (aka 0%) under Article 15 of the US-India treaty, otherwise I don't see any special rate so you probably owe 30% and can't claim a treaty benefit on W-8BEN. Dec 9, 2020 at 10:22
  • In any case I strongly recommend reading pub 519. It is also downloadable in PDF if you navigate up one level at the top of the page, or just search. As with most annual pubs the 2020 version isn't out yet, much less 2021, but there won't be much difference from 2019. Dec 9, 2020 at 10:23
  • @dave_thompson_085 are you sure of the interpretation "contractor income is exempt from US tax (aka 0%) under Article 15 of the US-India treaty"? This is exactly what I'm looking for. Dec 9, 2020 at 18:02
  • IF nonresident and less than 90 days per year, yes; see the treaty, or the India entry in table 2 at irs.gov/individuals/international-taxpayers/tax-treaty-tables Dec 10, 2020 at 7:34
  • did you figure this out? I am stuck in the same boat Mar 3, 2021 at 7:14

1 Answer 1

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If you are a software developer working for a USA client and leaving in INDIA. Then you need to fill mentioned below.

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and paragraph 12 - 4 (2)(ii) of the treaty identified on line 9 above to claim a % rate of withholding on (specify the type of income): . Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding:

The beneficial Owner has a permanent establishment in India and all work is performed in India as per Article V.

for reference: https://www.irs.gov/pub/irs-trty/india.pdf

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