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Old 04-16-2016, 05:23 PM  
brassmonkey
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Quote:
Originally Posted by Barry-xlovecam View Post
https://www.irs.gov/publications/p90...link1000219372

It's more of a 'get out of jail card' for a US payor of non-resident independent contractor's commissions. An exemption form for 1099 Miscellaneous Income annual reporting requirement.
https://www.irs.gov/pub/irs-pdf/iw8ben.pdf

it's to pay tax b4 it leaves the usa

Purpose of Form
Establishing status for chapter 3 purposes.
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;
Premiums;
Annuities;
Compensation for, or in expectation of, services
performed;
Substitute payments in a securities lending transaction;
or
Other fixed or determinable annual or periodical gains,
profits, or income.
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