Nonresident Alien Tax Question

[FMstereo]

I have been asked by a library owner in the USA to complete the W-8BEN form: the Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting.

Library owners usually deduct 30% withholding tax for non-US writers, however, by completing this form, under the NZ/USA Double Tax Treaty, the withholding tax on royalties will only be 5%.

However, the instructions for completing the form aren't completely clear.

It says that to claim "certain" treaty benefits I need a US or foreign tax ID number.

However, on the SoundExchange website they say that I need a US Tax ID number to apply for reduced treaty withholding tax.

It's not entirely clear whether I have to apply to the IRS for an Individual Taxpayer Identification Number (form W-7) to claim the tax treaty benefit, or whether I can simply use my foreign tax identifying number.

Has anyone else been through this issue recently? Any information that could help?

Thanks.

[hummingbird]

I went through the process of getting an ITIN because a library I was working with would not sign without it. They assisted by writing a letter for me. As most of my market is in the States having that number has saved me some headaches when signing other agreements where a US SSN was requested. I think it's a good idea to go through the process and have the ITIN for the future if it's likely you'll be dealing with other publishers or libraries in the US.

[FMstereo]

Thanks Vikki. Yes, I guess it will make life easier in the future!

Cheers