Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding，what is this?
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding,what is this? which was from a client of United States,he need me to complete this form so that they can make paymnet,but I don't know what it is and what is the effect.

Question

Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding，what is this?
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding,what is this? which was from a  client of United States,he need me to complete this form so that they can make paymnet,but I don't know what it is and what is the effect.

Answer

See http://www.irs.gov/businesses/small/international/article/0,,id=105139,00.html

W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, is used by a foreign person to:

1.  Establish foreign status,
2.  Claim that such person is the beneficial owner of the income for which the form is being furnished, and
3.  If applicable, claim a reduced rate of, or exemption from, withholding under an income tax treaty.

It is likely the requesting person wants to be exempt from Form 1099 reporting and withholding.

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