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Hostgator asking for W8-BEN form

by silentsal
16 replies
Hi

I'm a UK citizen and have received an email from Hostgator asking me to fill in a W8-BEN form.

I have been an Hostgator affiliate for a couple of years but haven't earned all that much from it because I rarely promote them.

Could anyone tell me the purpose of a W8-BEN form? Will it put me into the US tax system?

Is it worth me filling in this form even though I make very little income from Hostgator? Would it be better just to quit their affiliate program?

If I do need to fill in the form can anyone tell me the correct way to do it?

Thanks

Sally
#form #hostgator #w8ben
  • Profile picture of the author simplybeastz
    Originally Posted by silentsal View Post

    Hi

    I'm a UK citizen and have received an email from Hostgator asking me to fill in a W8-BEN form.

    I have been an Hostgator affiliate for a couple of years but haven't earned all that much from it because I rarely promote them.

    Could anyone tell me the purpose of a W8-BEN form? Will it put me into the US tax system?

    Is it worth me filling in this form even though I make very little income from Hostgator? Would it be better just to quit their affiliate program?

    If I do need to fill in the form can anyone tell me the correct way to do it?

    Thanks

    Sally
    It's for the US to say that your a foreign person , earning money. Here's a post about it on Wikiepedia

    "The Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, is used by foreign persons (including corporations) to certify their non-American status. The form establishes that one is a non-resident alien or foreign corporation, to avoid or reduce tax withholding from U.S. source income, such as rents from U.S. property, interest on U.S. bank deposits or dividends paid by U.S. corporations. The Form W-8BEN form should be given to the withholding agent such as a property manager, bank or stock broker, and not the IRS. The form is not used for U.S. wages and salaries earned by non-resident aliens (in which case Form W-4 is used), or for U.S. freelance (dependent personal services) income (in which case Form 8233 is used). The form requires the foreign person to provide a U.S. Taxpayer Identification Number unless the U.S. income is dividends or interest from actively traded or similar investments."

    Link: IRS tax forms - Wikipedia, the free encyclopedia
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  • Profile picture of the author davidtong
    "Will it put me into the US tax system? " - No, the W-8 BEN form tells the IRS (US) that you're NOT an American citizen/resident that they can tax and that any tax issues will be handled by your country of residence.

    It's just an online form too, unlike other affiliate programs where you need to fax/copy/scan your form...

    You must fill up the W8BEN with any US-based company, etrade, google, etc... it's standard stuff...

    BTW, be careful as well, phishing scammers are around that targets foreigners submitting W8BEN forms - I wrote a post in the past here on WF

    Here's a video on how to fill up a W8BEN form

    HTH Sally.
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    • Profile picture of the author silentsal
      Wow! Thanks for the quick replies guys! You practically replied before I hit "submit"!

      David - thanks for the useful video. I never thought to check youtube. Duh! Thanks for the scam warning too. I'll be sure to be on my guard.

      It seems straightforward enough from the video so I'll probably just fill out.

      Thanks again

      Sally
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    • Profile picture of the author McBob
      Originally Posted by davidtong View Post

      You must fill up the W8BEN with any US-based company, etrade, google, etc... it's standard stuff...
      Not entirely. A W8BEN form is only required to be filled out for US sourced income. "US Sourced" doesn't mean where the person writing the check is located, it means where the work was done by the payee.

      If an affiliate is not a US citizen, doesn't live in the US and has no property or employees in the US, his income is considered foreign sourced and not US sourced. In that case that affiliate does not need to fill out a W8BEN form. It is more than sufficient that (in that case) the affiliate emails (or faxes) a simple statement to the US based company in question. (Or click a simple button like Google requires their Non-US based Adsense publishers to do).

      My apologies for bumping an older thread, but since W8BEN forms are one of the most misunderstood things around (even amongst larger affiliate programs), I felt the need to reply.
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      • Profile picture of the author Rolliesworld
        So how do you explain that to the US based company in question, when they simply give you these two choices:

        Our records indicate that you have not filled out the necessary tax forms.
        Please choose one of the following:
        Form W9 (for US residents and companies)
        Form W8-BEN (for foreign residents and companies)

        So not filling out any form means they will automatically deduct 30% from your commission, and filling out W8-BEN means you are not seeing any deductions and they simply leave it with you to report your income in your country of residence?

        If it's true what you (McBob) say, then how do you go about conveying this to the US based company (who pay you) and/or the IRS?

        Anyone could explain please?


        Originally Posted by McBob View Post

        Not entirely. A W8BEN form is only required to be filled out for US sourced income. "US Sourced" doesn't mean where the person writing the check is located, it means where the work was done by the payee.

        If an affiliate is not a US citizen, doesn't live in the US and has no property or employees in the US, his income is considered foreign sourced and not US sourced. In that case that affiliate does not need to fill out a W8BEN form. It is more than sufficient that (in that case) the affiliate emails (or faxes) a simple statement to the US based company in question. (Or click a simple button like Google requires their Non-US based Adsense publishers to do).

        My apologies for bumping an older thread, but since W8BEN forms are one of the most misunderstood things around (even amongst larger affiliate programs), I felt the need to reply.
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        • Profile picture of the author jfmain
          I hate form filling so this post is very useful as I'm in the uk.

          The video above is useful but does not tell you what you don't need to fill in! The following video from barclays goes through each part of the form.

          Search youtube for "Barclays W8BEN Form"

          Title:
          W8BEN Form

          Skip to 1 minute in for the actual form filling part.

          regards John
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        • Profile picture of the author gonzoman925
          i'm wanting to know this as well
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  • Profile picture of the author davidtong
    NP, for Hostgator, it's even easier, you don't have to deal with the PDF as in the video, just click a couple of fields and type in your address/name and stuff and done in 2mins.
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    • Profile picture of the author jewfasa
      I just signed up for an affiliate account in Hostgator and been wary of filing up the form.

      Thanks to your video. Been a huge help.
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      I do Web Development and SEO services / Backlinks

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  • Profile picture of the author paulpower
    It's not a huge worry, just fill in the form as it lets HG know if you live outside of the US, and makes sure that you are responsible for any tax in your country.
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  • Profile picture of the author GoingSomewhere
    Check that mail from Hostgator. There are 2 forms.

    One is W8 for non-US citizens and W9 for US.

    You will fill the W8 as non-US citizen but I don't
    think it is a big deal
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  • Profile picture of the author zyvox
    my cpa network sent me W8 form with company name included in the form but i don't have company what should i do (n/a) or what? plz help!
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    • Profile picture of the author damasgate
      Originally Posted by zyvox View Post

      my cpa network sent me W8 form with company name included in the form but i don't have company what should i do (n/a) or what? plz help!
      just put in your name as an individual, you don't have to be a company
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  • Profile picture of the author WriterWahm
    Thanks for the answers here. I signed up for hosting on hostgator then was asked to fill that form. I'm usually leery of filling anything official sounding on the internet so I cancelled my hosting and asked for a refund. Guess I might consider going back now I understand things a little more.
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  • Profile picture of the author infinite
    Hi all

    I know this is a bit of an old thread but it seems relevant to me right now and had some useful info.

    I am based in New Zealand and occasionally promote Hostgator in my reports etc.

    When I login to their affiliate area, I now need to fill in a W8-BEN before they will release commissions.

    The part I am confused with is Part III - where it says

    "I have provided or will provide a statement that identifies those notional principal contracts from which the income is not effectively
    connected with the conduct of a trade or business in the United States. I agree to update this statement as required."

    Assuming I am just an affiliate for Hostgator (they are one of two places I currently need to get this form to), do I check this box and if so what statement am I supposed to provide and who do I provide it to?

    Also - does this form remain on file at Hostgator or does it get submitted to the IRS?

    I've never filled on in in the past and been paid previously. I was under the impression that it was only if you earned over $600USD a year anyhow? (Maybe I was misinformed... quite possible!)

    Anyone know the answers?

    Thanks in advance!

    Aaron
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  • Profile picture of the author infinite
    Hi guys

    I know there are several threads on this subject but all seem to conflict each other.

    Just in case anyone else was having issues working out whether they needed to file a W8-BEN, I found this useful Post of Josh Anderson's.

    http://www.warriorforum.com/ad-netwo...ml#post2519995

    Having said that, I still have some companies who insist on me completing a W8-BEN before they release commissions.

    If Josh is indeed correct here in the post below then I have no idea why I would want to do that and lose 30% in taxes unnecessarily.

    http://www.warriorforum.com/ad-netwo...ml#post6943414

    Does anyone have any further insight / advice?

    Aaron
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