Use of IRS W-8BEN and 8233 Forms
Recently there have been some questions regarding when you need to complete an IRS Form W-8BEN and 8233. Please refer your departments to the web page at http://www.bussvc.wisc.edu/acct/acimmtax.html for details on proper use of these forms.
Below is a summary of when you need to use these forms:
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Use Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, for Scholarship/Fellowship Grants if a tax treaty exemption applies. The treaty must include a provision for Scholarship/Fellowship Grants. To determine if the tax treaty applies refer to Accounting Services web page (http://www.bussvc.wisc.edu/acct/taxtabl1.html). Scroll down to the country in question to see if code 15, Scholarship/Fellowship Grant is covered by that treaty. If a tax treaty exemption is not being claimed, there is no need to complete the form.
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Use Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, for honorariums if tax treaty exemption applies or if claiming daily exemption. To determine if tax treaty applies refer to Accounting Services web page (http://www.bussvc.wisc.edu/acct/taxtabl1.html). Scroll down to find the country in question, and make sure that code 16, Independent Personal Services is covered by the treaty.
Please contact Jose Carus with questions.