Canadian freelancer working in Canada with US clients

ray · Post by **ray** » Thu Dec 15, 2011 2:58 am

Hi,

I'm sure this question gets asked all the time, but I'm going to ask it anyway!

I'm a Canadian freelancer working in Canada with a couple of US-based clients.

My question is do I need to fill out any US documents? I've read conflicting info that says I do not need to fill out anything because I'm Canadian and I do my work in Canada.

However some sites state that a W-8BEN form needs to be filled out. Are there instances where this is applicable?

Any info on the matter would be very much appreciated!

Thanks for reading.

nelsona · Post by **nelsona** » Thu Dec 15, 2011 7:16 am

Its really up to the client. Some feel better if they have a W-8 to back up why they aren't withholding, most don't.

This is kept by the client. If they ask for one fill one out.

ray · Post by **ray** » Thu Dec 15, 2011 2:47 pm

Thanks for replying, nelsona.

I also came across this great article about the W-8BEN:
http://taxes.about.com/od/taxplanning/qt/form_W8BEN.htm

I think that article explains things in detail, though it doesn't mention if the W-8BEN is mandatory.

If there's any other info from other people, let me know.

nelsona · Post by **nelsona** » Thu Dec 15, 2011 5:29 pm

Not really the best article, since igf you fill W8-BEN then no tax should be withheld, and he talks about getting it back.

The other thing to note is that this is talking about foreign nationals working as independent contractors in US.

You are in working in Canada.

ray · Post by **ray** » Thu Dec 15, 2011 6:06 pm

The title of that article is "US Withholding for Canadian Independent Contractors" so I thought that pertained to me.

nelsona · Post by **nelsona** » Thu Dec 15, 2011 6:31 pm

Cdns are absolved from tax withholding by virtue of the tax treaty. So filing W8-BEN absolves you of tax -- even if you were physically in US. that is the only reason to file W8-BEN.

So I don't know why he needed to point out how to get money back.