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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.

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.

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

Cheers