Tuesday, September 21, 2010

Does a Canadian Company Receiving Royalty Income from the US require an (EIN) Employer Identification Number?

It would appear from what I have read, that the Canadian recipient of the royalty income need only file a Certificate of Foreign Status of Beneficial Ownership For United States Tax Withholding - Form W-8BEN with the US Person paying the royalty in order to claim treaty relief from the 30% withholding tax otherwise required to be withheld from the payment. Therefore application for an EIN is unneccessary