Share this content

Company trading with US (W8-BEN)

US Witholding tax for UK company

Didn't find your answer?

Search AccountingWEB

One of my UK clients has just done some business with a US company as a one-off, providing services. The US customer has sent form W8-BEN to my client to complete and the assumption is that 30% withholding tax will be applied, which will be non-recoverable by my client.

I've only dealt with W8-BEN's when a UK individual receives US dividends, the individual effectively being able to reduce the tax from 30% to 15%.

Will the company suffer a 30% deduction? Is there a mechanism to reduce this to 15% or even to £nil? My research to date hasn't filled me with confidence as to what will actually happen.

If my UK client effectively loses 30% then he probably won't do business with the US again!

Any advice/experience would be appreciated.


Please login or register to join the discussion.

10th May 2016 12:09

Return the W8BENE and there should be no WHT

Thanks (0)
10th May 2016 12:26

Shouldn't your client be completing a W-8BEN-E? W-8BENs are for individuals.

The company is probably an Active NFFE (or a Passive NFFE if it fails the 50% income and assets test).

Once complete, there should be no withholding tax.

Thanks (0)
Share this content