Form W8BEN & W8BEN-E India: Complete 2025 Guide for Freelancers & Businesses
Form W8BEN and Form W8BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties.
For individuals, Form W8BEN is the go-to form, while businesses need Form W8BEN-E. Though they might seem complicated at first, filling them out is much easier than it looks.
In this article, we’ll walk you through how to complete these forms, highlight common mistakes to avoid, and share tips to simplify the process.
What is Form W8BEN for Indian Freelancers?
If you're an Indian freelancer working with U.S.-based clients, Form W8BEN is something you’ll likely need to fill out. It’s a declaration that confirms you are a resident of India and not subject to U.S. income tax withholding. Under the India-U.S. Tax Treaty, this form helps you claim a reduced (often 0%) withholding rate on payments received from U.S. clients. You submit the completed Form W8BEN directly to your client, not the IRS, and it’s typically valid for three years.
How to Fill Form W8BEN India: Step-by-Step Guide
Form W8BEN, also known as the "Certificate of Foreign Status," is for Indian individuals earning certain types of income from the U.S., including royalties or passive income.
This form proves you're a foreign person, Indian resident in this instance and ensures your income is taxed correctly. You’ll need to submit it when asked by the payer or withholding agent, basically your client or employer in the US. even if you’re not claiming a reduced tax rate or exemption from the standard 30% withholding.
This is how a Form W8BEN looks like:
Part I: Identification of Beneficial Owner (India)
This section of Form W8BEN contains your personal details as an Indian resident earning income from the U.S. Here’s how to complete it:
- Line 1-2: Enter your full name and country of citizenship (India).
- Line 3: Add your permanent address.
- Line 4: Provide your mailing address if it’s different from your permanent address. If they’re the same, leave this section blank.
- Line 5: This is for your U.S. Tax Identification Number (TIN). Most Indian freelancers or remote workers won’t have a U.S. TIN, so you can leave this blank.
- Line 6a: Enter your Foreign Tax Identification Number (FTIN). For Indian residents, this is your PAN number, which can be used as your FTIN.
- Line 6b: Check this box only if you’re not legally required to obtain an FTIN in your country of residence. However, as an Indian resident, your PAN qualifies as your FTIN. If you don’t provide it, your employer or client may ask for it later, so it’s better to share your PAN here.
- Line 7: This line is for any useful reference information for you or the payer to assist in processing the form. In most cases, this isn’t applicable, so you can leave it blank.
- Line 8: Enter your date of birth in the format DD/MM/YYYY.
Part II: Tax Treaty Benefits (India-US)
This is the most critical section of Form W8BEN. It allows you to claim tax treaty benefits under the India-U.S. Tax Convention to reduce or eliminate U.S. withholding tax.
- Line 9: Write "India" as your country of tax residence.
- Line 10: Specify the tax treaty article and withholding rate applicable to your income. For example:
- If you’re a freelancer earning remotely from a U.S. client, cite Article 15 of the tax convention, which relates to independent personal services. This article states that, as an Indian resident, your income is generally taxable only in India unless you have a fixed base in the U.S. or spend 90+ days there in a year.
- Your entry in Line 10 might look like this: “The beneficial owner is claiming the provision of Article and Paragraph 15 (1) of the treaty identified on line 9 above to claim a 0% rate of withholding on income from independent personal services.”
- You can also add details about the services you provide (e.g., design, marketing, or accounting) for more clarity.
Part III: Certification Process
- Carefully review the form to ensure all details are correct.
- Check the certification box to confirm accuracy.
- Sign and date the form.
Submit the completed form to your employer or client. You can also download Form W8BEN right here
W8BEN India Requirements Checklist
Documents Needed:
- PAN Card (Mandatory) - Your Permanent Account Number serves as the Foreign Tax Identification Number (FTIN) on Line 6a
- Current Address Proof - Aadhaar card, utility bills, or bank statements for the permanent address section
- Valid Government Photo ID - Passport or other government-issued identification for identity verification
- Bank Account Details - Account information where US payments will be received
- Client/Employer Information - Details of the US entity that will be withholding taxes
Eligibility Criteria:
- Individual Status Required - Only for individual taxpayers, not businesses or entities (businesses use W8BEN-E)
- Non-US Resident - Must be an Indian tax resident, not a US person for tax purposes
- Valid PAN Holder - Must possess a current PAN card issued by Indian Income Tax Department
- US Source Income - Must be earning income from US sources subject to withholding
- Treaty Benefits Seeker - Applying for reduced withholding rates under the India-US Tax Treaty
- No US Tax ID Required - US Tax Identification Number (TIN) is not mandatory for Indian residents
Timeline Requirements:
- Submit Before First Payment - Form must reach the withholding agent before receiving the initial US payment
- 3-Year Validity Period - Form remains valid for three calendar years from the signing date
- Immediate Update Required - Must notify withholding agent if any information becomes incorrect
- No Corrections Allowed - Submit a new form if errors are discovered after submission
- 30-Day Processing Time - Allow up to 30 days for the withholding agent to process and implement
- Annual Review Recommended - Check form accuracy each year, even if no changes are required
- Circumstance Change Trigger - Submit updated form immediately if tax residency or entity status changes.
Form W8BEN-E for Indian Businesses: Complete Guide
Form W8BENE serves a similar purpose as the Form W8BEN but is specifically designed for Indian businesses and entities rather than individuals. Like individuals, income earned by foreign entities from U.S. sources is also typically subject to a 30% withholding tax. However, by submitting a correctly completed W8 BENE, Indian businesses will qualify for a reduced withholding rate as per the India-US Income tax treaty.
Here’s what the first page of Form W8BEN E looks like:
Part I: Business Identification (India)
This section of Form W8BEN-E captures your business details:
- Line 1-2: Enter your organization’s name and the country of incorporation (India).
- Line 3: This section is relevant only if you have an LLC owned by your business that operates a U.S. bank account. For most Indian businesses, this doesn’t apply, so you can leave it blank.
- Line 4: Select your entity type. Most Indian businesses including proprietorship firm will choose "Corporation." However, pick the type that accurately represents your organization.
- Line 5: Indicate your entity’s financial status:
- For most Indian businesses, "Active NFFE (Non-Financial Foreign Entity)" will apply.
- If your business is passive, select the "Passive NFFE" option.
- If you select Active NFFE, you’ll need to fill out Part XXV on Page 7, Line 39.
- Line 6-7: Provide your permanent address and your mailing address if it differs from your permanent one.
- Line 8: Enter your U.S. TIN if you have one.
- Line 9a: GIIN (Global Intermediary Identification Number) is mainly for financial institutions. If this doesn’t apply to your business, leave it blank.
- Line 9b: Enter your Foreign TIN. For Indian businesses, this is usually your PAN or GSTIN.
- Line 10: Provide a reference number if applicable.
Part II: Disregarded Entity or Branch Receiving Payment
This section applies only to Foreign Financial Institutions. For most Indian businesses, you can skip this section.
Part III: India-US Tax Treaty Claims
This is the most critical section of Form W8BEN-E, as it deals with claiming tax treaty benefits under the India-U.S. Tax Convention.
- Refer to Article 7 of the tax treaty, which covers business profits.
- Article 7 states that your business profits will be taxable only in India unless you have a permanent establishment in the U.S. (e.g., an office or base).
- Mention this article in your claim to ensure reduced or no withholding tax.
The Rest of the Form
Most of the remaining sections of Form W8BEN-E deal with specific entities like financial institutions, banks, and international organisations. These sections don’t apply to regular Indian businesses providing services to U.S. clients.
Part XXX: Certification
- Review the form carefully to ensure all information is accurate.
- Check the certification box, sign, and date the form.
- Submit it to your client.
Filling out the W8BEN E can feel intimidating at first, but when you focus only on the sections relevant to your business, it becomes much simpler. Take it step by step, and you’ll be done in no time!
India-US Tax Treaty Benefits: Things to Note
While filling out Form W8BEN and W8BEN-E, freelancers have to quote the specific articles of the India-US tax treaty to claim exemption from withholding tax . Here's exactly how Indian freelancers and businesses can leverage specific treaty articles for maximum savings.
Key Treaty Articles for Indians
Article 15: Independent Personal Services (For Freelancers)
Perfect for Indian freelancers earning from US clients. Benefit: 0% withholding tax instead of 30%.
Who qualifies:
- Software developers, designers, writers, consultants
- Working primarily from India
- No US office or 90+ days presence in US per year
Real example: Mumbai freelancer Priya earns ₹40 lakhs annually from US clients. With Article 15, she saves ₹12 lakhs in US taxes yearly.
Article 7: Business Profits (For Indian Companies)
Covers Indian businesses providing services to US clients. Benefit: 0% US tax on business profits.
Requirements:
- No permanent establishment in US
- Indian business registration with GSTIN
- Services performed from India
Real example: Bangalore web development firm earns ₹83 lakhs from US projects. Treaty saves them ₹25 lakhs annually in withholding taxes.
Form W8BEN and W8BEN -E Download & Submission Process
Always download the latest version of Form W8BEN from the official IRS website to avoid delays. Outdated forms are one of the most common reasons Indian freelancers and investors face processing issues.
Use only verified IRS.gov links for both the form and instructions. These resources include tax treaty guidance specific to Indian residents and help ensure you're filling the form correctly. .
Where to Submit?
- For Investors: Submit via your broker’s portal (e.g., Fidelity, Interactive Brokers, Charles Schwab).
- For Freelancers: Share directly with your U.S. client’s payroll or accounting team.
- For Financial Institutions: Contact the international desk for their exact submission process. Never send the form via unsecured email, and confirm submission
Common Form W8BEN and W8BEN-E Filing Mistakes to Avoid (India)
Filling out W8 Forms as Indian residents or businesses isn't really complicated. However, it is important to avoid some common mistakes to ensure your submission is accurate and hassle-free:
Choosing the correct W8 Form
There are five types of W8 Forms, but most Indian freelancers and businesses will need Form W8BEN or Form W8BEN-E.
- Form W8BEN: For individuals to certify non-U.S. tax status and claim tax treaty benefits.
- Form W8BEN-E: For entities, like businesses, to do the same.
Choosing the correct form based on your status, individual or entity, is essential to avoid payment delays or incorrect tax withholding. Always double-check before submitting.
Tax Identification Number (TIN)
It is important to share your Tax Identification Number on the W8 Form. If you don’t have a U.S. TIN, use your PAN or GSTIN as your FTIN. Ensure the number matches your official records.
Tax Treaty Details
It is important to quote the correct tax treaty clause to be able to claim reduced tax withholding or exemption. For Indian residents, cite Article 15 (Independent Personal Services) or Article 7 (Business Profits) of the India-U.S. Tax Treaty. Clearly state your claim for a reduced or 0% withholding rate.
Entity Classification (For W8 BEN-E)
Selecting the wrong entity type or failing to declare your financial status can become a problem. Most Indian businesses are Active NFFE (Non-Financial Foreign Entity). Select the correct classification to avoid rejection.
Submitting the Form to the Wrong Party
W8 forms should always be submitted to the withholding agent requesting it, not directly to the IRS.
W8BEN vs W8BEN-E: Key Differences for Indians
Both W8 forms are IRS forms that Indian residents and companies earning from the US, must complete to qualify for a reduced U.S. tax withholding rate on income earned from U.S. sources. The main difference is that Form W-8BEN is for Indian individual residents, i.e freelancers, remote workers earning from the US, while Form W-8BEN-E is for Indian businesses earning from the US. Additionally, since Form W-8BEN-E is for businesses, it is more detailed than W-8BEN.
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What is the purpose of Form W8 BEN and W8 BEN-E?
Form W8 BEN is for individuals, and W8 BEN-E is for entities to certify their foreign tax status and claim reduced tax withholding rates under a tax treaty with the U.S., like the India-U.S. Tax Treaty.
Do Indian freelancers need to file Form W8 BEN?
Can I file Form W8 BEN without a U.S. TIN?
What happens if I don’t submit a W8 form to my client?
How long is Form W8 BEN or W8 BEN-E valid?
What is Form W-8BEN?
Where to Send the W8BEN and W8BEN-E Forms?
