Question for HaD international prize winner - Form FW-8-BEN
K.C. Lee wrote 08/30/2016 at 16:03 • 0 pointsI am trying to understand how to fill out the FW-8-BEN form for International winner (ideally Canadian). The difficult part is section II Claim of Tax Treaty Benefits - Special rates and condition.
Should I just give up and let them classify it as FDAP with 30% withholding rate that cannot be claim back?
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Hey, i was with the same problem. For my country there was no solution, but for Canada there is. I found a guy on youtube that tells you how to fill that part so that your government takes care and you don't get charged.
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Besides, the tax is not that much. I live in Bolivia and they only charged me 30$.
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It is the IRS (US) side that charges 30%. So $300 out of $1000.
Canada doesn't charge any taxes on prizes, lotteries etc.
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I have verified with our accounting dept that we in the US are not required to withhold any of the $1000.
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Thanks.
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Skip that section.
We are required to collect a W9 or W8 to certify a person's US tax status. If they are not a US person (W8), they are simply certifying that to us so that we do not have to withhold taxes from their payment and remit them to the IRS. This document does not get sent to any taxing authority US or otherwise; it is kept on file as our proof to the IRS that we did not need to withhold taxes from the payment should we ever get audited.
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