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IRS Form W-8BEN or IRS Form W-8BEN-E You will need to collect information and file Form W-8BEN for any foreign individuals you contract with over the course of the tax year. If you contract with a foreign company or self-employed workers who operate under a business entity, you'll need to collect IRS Form W-8BEN-E.
Since the independent contractor is solely responsible for reporting their income and following local tax laws in their own country, your responsibility is to simply submit payment ing to the agreed-upon terms. The contractor will handle any tax withholding and liability ing to local laws.
Do Non-US Companies Need W-9 and W-8 Forms? Foreign individuals and entities that don't reside in the U.S. don't need to file a W-9 form. The IRS, however, requires you receive a W-8 form from each foreign individual or company you conduct business with. Foreign aliens who are US residents will need to file a W-9.
However, the IRS doesn't require a company to withhold taxes or report any income from an international contractor if the contractor is not a U.S. citizen and the services provided are outside the U.S. Filing a 1099 is required if: The contractor is located internationally but is a U.S. citizen.
Foreign contractors pay their own income tax, which eliminates the need for U.S.-based companies to withhold taxes on payments. Companies do, however, need to collect IRS Form W-8BEN or W-8BEN-E from contractors performing work outside the US.