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W8-BEN form – Why and when is it needed for Affiliate Marketers

If you are registered as an affiliate marketer on any network then you will earn commission on every sale that is made by you or from your network or channel. Whenever you get a commission your account is credited with some money and hence you have to pay the taxes, approximately 30% if you are from USA and the Company in which you have registered is also from USA. You are paid on the basis of CPA Model or CPL model.
(Cost Per Acquisition or Cost Per Lead).

Affiliate marketers require a W8-BEN form if they are from any country other than USA. Affiliate marketing on internet has been there for more than a decade and people are signing up in affiliate marketing portals like Amazon or Commission Junction at a faster rate now a days.

Affiliate Marketers get a portion of Sales Amount as a commission. Some states in USA require taxes from affiliate marketers which is a percentage of the amount received as a commission. This tax is required only from USA Residents. If you are a Non-US resident and doing business as an affiliate marketer then you have to fill this W8-BEN form.

This form is a proof that your nationality is from a country other than USA.

If a company registers you as their affiliate then they should mention your details in their records and keep this W8-BEN form with them.

What is Official Meaning of W8-BEN form ?

Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)

You are not allowed to fill this form if you are a citizen of USA. This form is for NON – US residents, individuals.

This form is managed by Department of the Treasury, Internal Revenue Service

You have to fill this form and submit it to the Payer.

You can view or download the W8-BEN form from the official website of IRS or simply click the link below.

https://www.irs.gov/pub/irs-pdf/fw8ben.pdf

W8-BEN form for affiliate marketers is divided into three parts.

Part 1- Your personal details like Name, Date of Birth, Country of Residence etc.

Part 2 – Claim of Tax Treaty Benefits

Part 3 – Certification