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What W8BEN/W8-BEN-E form should a US-based company request from an India-basedsoftware development company it has contracted development work to?
If the payment is made to a company resident in India the proper form torequest is W8BENE. The form certifies that the entity is the “beneficialowner” of the income and the income is not effectively connected with a or business.The most confusing part is Section 4 which is required under the FATCA. Ifthe Indian entity is not a financial institution and more than 50 of thecompany’s income is active then the entity must tick the Active NFFE box andcertify the information in Section XXV.
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