W-8BEN form is obligatory when a freelancer is not a U.S. taxpayer. You should fill out this form after Upwork registration is accepted.
The reason why you need to fill out the W-8BEN form:
- Tax Status Declaration: By filling out the W-8BEN form, non-U.S. individuals declare their foreign status to the U.S. IRS. Freelancers are proving that they are not subject to the same tax withholding rules as U.S. citizens or residents.
- Claiming Tax Treaty Benefits: When a freelancer’s country has a tax treaty with the U.S., this form helps in claiming reduced tax withholding rates or exceptions on some income.
- Compliance: This form is a requirement for non-U.S. freelancers working on Upwork to comply with U.S. tax regulations. It also helps Upwork determine adequate tax treatment for payments made to freelancers.
After you fill out the form, the system will update the information, and you can access the funds immediately.
To fill out the form, go to Settings—> Tax Information—> and enter your legal name and address from your government document.
When you complete the W-8BEN form, Upwork will not:
- Withhold any taxes from your earnings
- Report your income to anyone
- Ask for any taxpayer identification number
- Determine or check if you owe taxes in your own country
By adding information, you confirm that Upwork is not required to collect taxes on your earnings.
If you don’t add information for the W-8BEN form, Upwork will limit your account. You will not be able to withdraw funds or continue working on the platform. This will be effective until you provide the necessary tax documentation.
To avoid these potential issues, you must complete and submit the WBEN-8 form if you are a non-U.S. freelancer using Upwork. If you have any doubts or questions about how to complete the WBEN-8 form, you can always consult a tax professional for guidance or Upwork support.
