Form W-8 for Foregin Entities (Non US Companies – Corporation, Active NFFE)

Summary

Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) is used by foreign entities and non-U.S. companies—including foreign corporations and entities classified as Active Non-Financial Foreign Entities (Active NFFEs)—to certify their foreign status for U.S. tax withholding and reporting purposes.

The form is provided to a U.S. withholding agent or payer (such as a U.S. company making payments for services or other U.S.-source income) and is not filed with the Internal Revenue Service. A properly completed Form W-8BEN-E allows the withholding agent to determine whether the default 30% U.S. withholding tax applies or whether a reduced rate or exemption may be available under U.S. tax law or an applicable income tax treaty.

Official IRS resources related to Form W-8BEN-E include:

Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)
Form W-8BEN-E (PDF)
IRS Instructions for Form W-8BEN-E

Overview

Form W-8 is a series of official Internal Revenue Service (IRS) forms used by foreign persons and foreign entities to certify their non-U.S. status for U.S. tax withholding and reporting purposes. Non-U.S. companies—including foreign corporations and entities classified as Active Non-Financial Foreign Entities (Active NFFEs)—use the appropriate Form W-8 to document their status when receiving certain types of U.S.-source income.

Form W-8 is not filed with the IRS. Instead, it is provided to the U.S. withholding agent or payer (such as a U.S. company or financial institution) that makes payments to the foreign entity.

This article focuses specifically on non-U.S. small businesses organized as foreign corporations or Active NFFEs. The example provided applies only to entities and does not apply to individuals.

General IRS guidance is available on About Form W-8.

Why Non-U.S. Companies Must Provide Form W-8

Under U.S. tax law, certain U.S.-source payments to foreign persons and foreign entities are generally subject to a 30% default federal withholding tax, unless an exemption or reduced rate applies.

A properly completed Form W-8 allows the withholding agent to confirm that the payee is not a U.S. person and to apply the correct withholding treatment, including any reduced rate under an applicable income tax treaty, if available. If a valid Form W-8 is not provided, the withholding agent may be required to withhold tax at the full statutory rate.

Which W-8 Form Applies to Foreign Entities?

Form W-8BEN-E — Primary Form for Foreign Entities

Most non-U.S. companies use Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).

Form W-8BEN-E is used by foreign entities to certify their foreign status for U.S. tax purposes, identify their entity classification (for example, foreign corporation or Active NFFE), and claim tax treaty benefits, if applicable. Form W-8BEN-E applies only to entities, not individuals.

Foreign Corporations

A foreign corporation is generally a corporation that is not organized under the laws of the United States or any U.S. state. When a foreign corporation receives U.S.-source income—such as interest, dividends, royalties, or payments for services—it typically provides Form W-8BEN-E to the U.S. payer.

On the form, the foreign corporation certifies its legal name and country of incorporation, its status as the beneficial owner of the income, and whether it is eligible for income tax treaty benefits, if applicable.

Active NFFE (Non-Financial Foreign Entity)

An Active NFFE is a classification used under U.S. withholding and reporting rules, including FATCA requirements. In general terms, an Active NFFE is a foreign entity that is not a financial institution and meets activity-based criteria described in the IRS instructions.

Foreign entities classified as Active NFFEs use Form W-8BEN-E to certify their status and provide required FATCA information to the withholding agent.

Example: How to Complete Form W-8BEN-E (Non-U.S. Small Business — Foreign Corporation / Active NFFE, 2025)

The following example is based on the IRS Instructions for Form W-8BEN-E and reflects a common scenario: a non-U.S. small business organized as a foreign corporation, classified as an Active NFFE, receiving payments from U.S. companies (for example, for services).

Part I — Identification of Beneficial Owner

This section identifies the foreign entity as the beneficial owner of the income.

• Line 1 — Enter the full legal name of the organization.
• Line 2 — Enter the country of incorporation or organization.
• Line 4 — Select the entity’s Chapter 3 status (for example, Corporation). This selection determines the entity’s classification for U.S. withholding purposes.
• Line 5 — FATCA status of the entity (Chapter 4 status).
  FATCA refers to the Foreign Account Tax Compliance Act.
  Many non-U.S. small businesses are classified as Active Non-Financial Foreign Entities (Active NFFEs), provided they are not financial institutions and meet the activity requirements described in the IRS Instructions for Form W-8BEN-E.
• Line 6 — Provide the permanent residence address (a P.O. Box is not permitted).
• Line 8 — Enter the foreign tax identifying number, if applicable.

If the foreign entity does not have a U.S. taxpayer identification number (TIN), it generally reports its local tax identification number in the Foreign TIN field (Part I, line 8b), provided the entity is not claiming tax treaty benefits. A U.S. TIN is required only when tax treaty benefits are claimed, as described in the IRS Instructions for Form W-8BEN-E.

Part III — Claim of Tax Treaty Benefits (when applicable)

This part is completed only if the foreign entity is claiming benefits under an applicable U.S. income tax treaty, based on its Chapter 3 entity status from Part I. If no treaty benefits are claimed, this part is left blank.

Part XXV — Active NFFE

If the entity qualifies as an Active Non-Financial Foreign Entity, it certifies that status in Part XXV (Active NFFE).
In the 2025 version of the form, this generally corresponds to checking Box 39 in Part XXV, where applicable, to confirm that the entity meets the Active NFFE requirements described in the IRS instructions.

Part XXX — Certification

The form must be signed and dated by an authorized individual of the foreign entity. The certification includes the signer’s first and last name and the date.

A handwritten or otherwise valid signature, as accepted by the withholding agent, is required. An unsigned form is not valid for U.S. withholding purposes.

FDAP Income and Withholding Responsibility

FDAP income refers to certain types of U.S.-source income that are fixed or determinable, annual or periodical in nature, such as interest, dividends, royalties, and certain service payments.

Payments of U.S.-source FDAP income to foreign entities are generally subject to a 30% default U.S. withholding tax, unless a valid Form W-8BEN-E supports a reduced rate or exemption.

The U.S. withholding agent (the U.S. company making the payment) is responsible for determining whether the foreign entity is subject to the default 30% withholding and whether any reduced withholding applies based on tax treaty eligibility or other exceptions documented on the form.

Form W-8BEN-E does not itself eliminate withholding; it provides the documentation the withholding agent relies on to make this determination.

Validity Period

In general, Form W-8BEN-E remains valid through the end of the third calendar year following the year in which it is signed, unless a change in circumstances makes the information on the form incorrect.

Key Compliance Points

• Form W-8BEN-E is used only by foreign entities, not individuals.
• It documents non-U.S. status and entity classification.
• It supports correct U.S. withholding treatment.
• A new form must be provided if relevant information changes.

Official IRS Resources

• About Form W-8
• Form W-8BEN-E (PDF)
• Instructions for Form W-8BEN-E
• About Form W-8BEN-E

Related topic: NAICS Codes

For additional context when working with U.S. companies, compliance documentation, and onboarding processes, see: NAICS Codes – North American Industry Classification System (NAICS).

Disclaimer

This article is for general informational purposes only and is not intended as tax, legal, or accounting advice. The content is based on the 2025 version of IRS Form W-8BEN-E and related IRS instructions available at the time of writing. IRS forms and requirements may change. Readers should consult official IRS guidance or a qualified tax professional regarding their specific circumstances.