is it safe to say that my US employer will not withhold my income once I submit the w8-ben?

Jan 17 '21 hlockman 2382 clicks ask

Hi guys,

I need help in understanding the w8-ben. From what I understand w8-ben is a form our employers ask us to sign to prevent our income from being taxed in the United States right? So we can file it here in PH as professionals.

So is it safe to say that my US employer will not withhold my income once I submit the w8-ben? Or will they still deduct the taxes, but just not the full 30% common in the U.S.?

Thanks.

2 Replies

It tells the US Governmemt that you are not tied to the US in anyway that would require us to withhold any employee taxes like social security or Medicare. It has no effect on you. If we were ever audited by the IRS (tax people) this form will prove we are not required to pay taxes on your behalf.

But we are still required to pay income tax. Hope this makes sense.

You should not be declared as employee but contractor. You will be counted as their expense.

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