Filing W-8BEN-E Form as Canadian Corporation with Canadian Shareholders on App Store - U.S. Certificate Questions

I help developers with these forms regularly. The W-8BEN-E is definitely more complex than the individual W-8BEN form you were likely using before. For App Store sales as a Canadian corporation, your income is typically classified as royalties under the U.S.-Canada tax treaty. On the W-8BEN-E, you'll need to claim treaty benefits under Article 12 (Royalties) which reduces withholding to 0% in most cases. Make sure you have your Canadian business number ready and classify your entity correctly (usually as a corporation unless you have a different structure). The trickiest part is often Part III where you claim treaty benefits - be specific about the article number and rate. For section 14b, you'll need to explain how you meet the "limitations on benefits" provision - usually by checking the box for "Company that meets the ownership and base erosion test." Remember that Apple will review your submission, and if there are errors, they'll ask you to resubmit, so don't worry too much about getting it perfect on the first try.

After struggling with the W-8BEN-E form for my game dev company, I found an amazing tool that made the whole process so much easier! I used https://taxr.ai to help analyze my specific situation and get clear guidance. What's cool is that you upload your business docs and answer a few questions about your company structure, and it gives you step-by-step instructions for filling out each section of the W-8BEN-E form specifically for app developers. It even explained that for Canadian corps selling on App Store, our income is generally classified as royalties under Article 12 of the tax treaty. The best part was that it flagged potential issues I would have missed on my own, especially around those tricky "limitation on benefits" provisions that depend on your shareholder structure.

Just wanted to follow up! I tried https://taxr.ai after seeing the recommendation here and it was incredibly helpful for my UK limited company situation. The tool walked me through each section of the W-8BEN-E form with specific guidance for app developers. What impressed me most was how it explained the differences between royalty income vs. business profits for digital products, and how that classification affects which treaty articles apply. For my UK company, it correctly identified that I needed to use Article 12 of the US-UK treaty. My form was approved by Apple on the first try! Saved me tons of time and stress - definitely recommend it to anyone struggling with these complex forms.

I was in your EXACT situation last year - Canadian corporation, all Canadian shareholders, selling apps on the App Store. Spent WEEKS trying to get my W-8BEN-E accepted. Called the IRS multiple times, waited on hold for hours, only to get contradictory advice each time. Finally discovered https://claimyr.com which got me through to an actual IRS specialist in about 20 minutes instead of the usual 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c The specialist confirmed that for Canadian corporations selling digital products on App Store, we classify it as royalties under Article 12, and walked me through each section of the form. Turns out I had been filling out Part III all wrong! Getting expert advice from an actual IRS agent made all the difference.

I have to admit I was completely wrong in my skepticism. After struggling with my W-8BEN-E form for weeks and getting rejected twice by Apple, I tried https://claimyr.com out of desperation. Got connected to an IRS international tax specialist in about 15 minutes who was incredibly helpful. She explained that as a Canadian corporation selling digital products, my income is indeed considered royalties under the US-Canada tax treaty, and showed me exactly how to complete the limitation on benefits section based on my ownership structure. My form was accepted by Apple two days after resubmitting! The time and stress saved was well worth it. If you're stuck with these forms, definitely worth getting direct guidance from the IRS.

Just to add something that might be useful - don't forget about the treaty identification number! As a Canadian corporation, you'll need to provide your corporation number or business number from CRA. I missed this on my first submission and got rejected. Also, double-check that your corporation name on the W-8BEN-E exactly matches what's on your Canadian incorporation documents. Even minor differences can cause rejection.

Has anyone had issues with FATCA classifications on this form? I'm struggling with Part XXIV vs Part XXV for my app development company.

I went through this exact same process last year when I incorporated my mobile game development company in Ontario. The W-8BEN-E form was definitely intimidating at first, but once I understood the key classifications, it became much clearer. A few additional tips that helped me: 1. Make sure you're clear on your entity type classification in Part I - for a standard Canadian corporation, you'll typically select "Corporation" 2. In Part II (Disregarded Entity), you'll likely leave this blank since your corporation isn't a disregarded entity 3. For Part III (Claim of Tax Treaty Benefits), be very specific about citing "Article 12 of the Canada-United States Income Tax Convention" and state the rate as 0% for royalties 4. Don't forget to sign and date the form! I actually forgot this on my first submission and had to resubmit The key thing to remember is that App Store revenue for digital products is generally treated as royalties under the tax treaty, not business profits. This distinction is crucial for getting the right withholding rate. Good luck with your incorporation transition! It's definitely worth getting it right the first time to avoid delays with your App Store payments.

I just went through this exact process a few months ago when I transitioned my indie game studio to a corporation! The W-8BEN-E definitely feels overwhelming at first, but it's much more straightforward once you understand the key points. For Canadian corporations selling on the App Store, here's what I learned: **Income Classification**: Your App Store revenue is classified as royalties, not business profits. This is because you're licensing your software to Apple for distribution, making it royalty income under Article 12 of the Canada-US tax treaty. **Key Form Sections**: - Part I: Standard corporation info (make sure your legal name matches exactly with your incorporation docs) - Part III: Claim treaty benefits under Article 12, enter 0% withholding rate - Part XXV: Most app dev corps qualify as "Active NFFE" since you're actively running a business **Critical Details**: - Include your Canadian Business Number in the foreign tax ID field - In the Limitation on Benefits section, mention that you meet the ownership test (since all shareholders are Canadian) - Don't forget to actually sign and date the form! The treaty benefit is huge - it reduces your US withholding from 30% down to 0% for royalties. Having all Canadian shareholders actually helps because it makes the Limitation on Benefits provisions easier to satisfy. Apple typically reviews these within 5-7 business days. If they reject it, they'll usually tell you exactly what needs to be fixed. Just make sure every detail matches your corporate documents perfectly. Hope this helps! The corporate structure is definitely worth it for the tax benefits and liability protection.