Hello, I am an Indian citizen trying to work for a freelancing site. They are asking me to sign W-8BEN and there are a few details that need to be filled in. I need help to fill below details : 6. Foreign Tax Identifying number Claim of Tax Treaty Benefits : 9. I certify that the beneficial owner is a resident of ___________ within the meaning of the income tax treaty between the United States and that country. 10. Special rates and conditions: The beneficial owner is claiming the provisions of Article and paragraph ____________ of the treaty identified on line 9 above to claim a ____ %rate of withholding on (specify type of income) ____________________________________________________
Dear sir/ ma'am,
First you need to tell me what kind of services are you providing them.
Then only I can guide you.
As far as foreign tax identification number is concerned you can use PAN number there.
I would recommend to book phone consultation for more details.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
I am a software development freelancer providing and going to provide the same services to them. I need to know what details has to be filled for the above fields. If I have to pay tax in India, do I get any tax benefits if i fill above details and how much percentage of tax do I need to pay?
- FTIN is PAN in India
- Form is a declaration to the US payer for deduction of witholding taxes like TDS in India. You have to mention the relevant Article of India - USA treaty
- In India you are liable to pay income tax.Also you have to obtain GST registration if turnover exceeds Rs. 20 lacs in a financial year.
For detailed discussion you may opt for phone consultation. I can assist you in filing of Form W-8Ben and compliances in India.
W-8BEN is a certificate mandated by the US government to collect Non-resident Tax information like their tax residency status. The purpose of the form is to do the correct withholding of tax.
Foreign Tax Identifier will be the Indian PAN
Since you will be residing in India and providing services through the WFH medium, you will remain an Indian resident for tax purposes.
Your recipient will pay you for your services after deducting the relevant taxes required as per the US laws.
The tax paid by the US government will be allowed as a tax benefit in India. While calculating the tax in India at the time of return filing, the tax already paid to your recipient's country will be allowed as a tax credit.
You can refer to this link for the Agreement for avoidance of double taxation of income with the USA
https://www.incometaxindia.gov.in/pages/international-taxation/dtaa.aspx
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Enter following :
a)
Foreign Tax Identifying number :- Your PAN in india
b) in point 9Beneficial owner is resident of India
c) in point 10
Make is Fees for Technical Service under Article 12 having withholding rate of 20% under the nature of income
Software Development Service
Foreign Tax Identifying number is your PAN in India
Claim of Tax Treaty Benefits : Article 12 of India US Tax treaty
9. I certify that the beneficial owner is a resident of India within the meaning of the income tax treaty between the United States and that country.
10. Rate of tax would be 15% if it is royalties. If it is technical service - then make available test needs to be satisified
You are an Indian citizen so obviously you need to pay tax in India.
Need to discuss separately as to what needs to be filed in the above columns for correct declaration based on the DTAA