IRS Instructions for Form W-8BEN-E: foreign entities document their status, and royalties are taxed at 30 percent (IRS, Instructions for Form W-8BEN-E (Rev. 10-2021), General Instructions, Purpose of Form)
A holder that is a company gives the US buyer a Form W-8BEN-E to prove it is foreign. The IRS lists royalties among the US-source income taxed at 30 percent.
Dated 18 Oct 2026Source checked 18 Oct 2026Basis: primary text
In the source's own words
“This form is used by foreign entities to document their statuses for purposes of chapter 3 and chapter 4, as well as for certain other Code provisions as described later in these instructions. Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S. sources that consists of: Interest (including certain original issue discount (OID)); Dividends; Rents; Royalties;”
Where it was read
Also read from the same source
- IRS Instructions for Form W-8BEN-E: give it before the payment, or expect 30 percent withholding (IRS, Instructions for Form W-8BEN-E (Rev. 10-2021), When to provide Form W-8BEN-E to the withholding agent)
- IRS Instructions for Form W-8BEN-E: the tax number and the treaty claim in Part III, lines 14a and 14b (IRS, Instructions for Form W-8BEN-E (Rev. 10-2021), Line 9b and Part III, Lines 14a-14b)
- IRS Instructions for Form W-8BEN-E: the chapter 4 (FATCA) status line, and royalties in the active NFFE test (IRS, Instructions for Form W-8BEN-E (Rev. 10-2021), Purpose of Form; Line 5; Part XXV, Line 39)
Figures it counts in
It is shown on its own, not counted into a figure.
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