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Old 07-28-2015, 04:03 PM   #1
nik2011
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Default Foreigner - domain sale in USA

Need some advise
I am foreigner from Caribbean ( not USA citizen )
Individual not a Company
Never conducted any business in US before this
Recently sold domain thru US Registrar Auction to US customer
US Registrar deducted 20% for sale and informed me
to complete either :
W-8BEN Form
OR
W-8ECI Form



My question is which of the above should complete for Registrar

Any assistance would be greatly appreciated since I not familiar with US tax laws



Kind Regards
Nik




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Old 07-28-2015, 07:14 PM   #2
AFFA
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Default Re: Foreigner - domain sale in USA

I wish to inform you must give Form W-8ECI to the withholding agent or payer if you are a foreign person and you are the beneficial owner of U.S. source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the United States.

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Old 07-28-2015, 08:43 PM   #3
nik2011
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Default Re: Foreigner - domain sale in USA

Hi Mr AFF
Many thanks for your advise /guidance . Greatly appreciated
But, problem is I do not have :

6.Business address in the United States (street, apt. or suite no., or rural route). Do not use a P.O. box or in-care-of address.
City or town, state, and ZIP code

7. U.S. taxpayer identification number (requiredâ€"see instructions)
SSN or ITIN EIN

Because I never been or worked in USA . I bought the domain an paid for it by Paypal here in the Caribbean and US Registrar auctioned and sold it under my account

Can I omit (6) and (7) on Form W-8ECI

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Nik
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Old 08-03-2015, 01:31 AM   #4
Lexus
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Default Re: Foreigner - domain sale in USA

Form W-8 is filled out by foreign entities (citizens and corporations) in order to claim exempt status from certain tax withholding. The form is used to declare an entity’s status as non-resident alien or foreign national who works outside of the United States. The benefit is that these individuals receive a certain tax treaty status that affords them certain right, such as lower withholding from dividends paid by US corporations. Brokers typically request Form W-8BEN, the form used to lower withholding from dividends, from foreign nationals. Form W-8ECI is used by foreign entities to certify that all income on the form is associated with trade or business within the United States. A withholding agent will typically request a Form W-8BEN of any foreign client.* If you are a foreign investor, filling out this form may significantly lower your tax withholdings. A withholding agent must generally withhold 30% of the income distributed to a foreign national, unless the national can be associated with tax treaty status via a Form W-8.*If you are a foreign person who is the beneficial owner of U.S. source income that is not effectively connected with a U.S. trade or business and you are claiming a reduced rate of withholding under an applicable income tax treaty in effect, do not use Form W-8ECI. Instead, provide Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (Individuals) or Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities). It is recommended to seek a competent attorney who deals with Tax laws who may guide you in this regard.
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Old 08-04-2015, 12:23 AM   #5
nik2011
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Default Re: Foreigner - domain sale in USA

Hi Mr Lexus

Many thanks for your clear explanation, clarification and purpose of Forms W-8,W-8ECI, W-8BEN and W-8BEN-E

I already contacted a US Tax consultant who inform me to use and submit W-8BEN Form to Registrar, which I did

Subsequently , Registrar paid me for domain sale - Less 20%

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Nik
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Old 10-12-2016, 04:41 AM   #6
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Default Re: Foreigner - domain sale in USA

I also recently sold a domain and I have the full credit on my account with the broker.

What will happen if I do NOT fill out one of these forms?

The broker asked for it to be filled out but that was over a month ago.
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Old 10-13-2016, 03:28 AM   #7
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Default Re: Foreigner - domain sale in USA

They will likely hold back a certain amount for taxes, perhaps 20%, when you go to cash out or use your credit. The filing of the form may lower the amount or eliminate the withheld amount.
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