The non-U.S. taxpayers who receive payments from the US fill out the W-8BEN form to verify that they are not U.S. taxpayers and are performing services outside of the United States.
Without this form as proof that you are based outside the U.S., the payer will be required to withhold up to 30% of your earnings. As long as a W-8BEN or W-8BEN-E form is correctly filled out and valid, they are not required to withhold at this rate.
- Form W-8BEN is completed by non-U.S. individuals
- Form W-8BEN-E is a more detailed version of the W-8BEN that is required for non-U.S. entities (i.e. corporations, partnerships, and other types of entities)
Having said that, Mulya is just a payment platform helping you receive payments from your foreign clients, and keeping you compliant in India (just like any other payment gateway).
The above-mentioned forms are for your client’s compliance in the US, who is paying you. They get this form filled by you so that they stay compliant with the US regulations, and don’t have to withhold tax.