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Foreign vendors

New vendors must provide SPU with a completed W-8BEN for our records: https://www.irs.gov/pub/irs-pdf/fw8ben.pdf.

This is because the University is required to establish the tax status of foreign entities with which it conducts business. The W-8 submitted by a foreign entity indicates whether taxes need to be withheld when payments are processed.

Transactions that may trigger tax withholding include services performed in the US, and US-sourced royalties and rents. A foreign entity from a country that has negotiated a tax treaty may be exempt from tax on certain types of transactions. If they are from a country with no treaty benefits, or the activity is not covered by the treaty, payment to the vendor is subject to 30% tax withholding. Probably delete - useful for departments?

Foreign vendors are placed on a payment "hold" to ensure that all requests for payments are reviewed for compliance prior to payment being processed.

Each W-8 is reviewed for tax status determination, and each invoice submitted for payment is reviewed by Accounts Payable for taxable-type transactions.

Payments to foreign vendors are made via U.S dollar checks, and by electronic funds transfer in U.S. dollars or the foreign currency.

Form W-8 Ben

https://www.irs.gov/forms-pubs/about-form-w-8-ben

Payments to non-resident aliens

Independent personal services are personal services performed by an independent nonresident alien (NRA) contractor. This also includes honorarium paid by colleges and universities to visiting teachers, lecturers, and researchers. In general, the 30% tax will be withheld from the payment, unless it is exempted by a tax treaty. Refer to Tax Treaties Table provided to view a list of countries with which the United States has a tax treaty in which NRA independent contractors may be able to exclude some or all of their income under the terms of a tax treaty entered into between the United States and their home country.

Payments to non-resident aliens include any payments made to a visiting lecturer from overseas or a contractor who lives overseas.

In general, 30% withholding tax will be applied to any amount due to the non-resident alien. However, some countries have entered into a tax treaty with the U.S. If the non-resident alien wishes Do they do a W-8BEN-E

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