Help with W-8BEN-E for Canadian Corporation on App Store - U.S. Certificate of Foreign Status requirements

This is definitely something I can help with! The form you need (W-8BEN-E) is specifically for foreign entities (your Canadian corporation), while the W-8BEN form was for you as an individual. App Store payments to foreign corporations are typically classified as royalties under tax treaties. Since you're in Canada, you should qualify for reduced withholding under the US-Canada tax treaty - usually 0% instead of the standard 30% withholding rate, but you need to properly complete the W-8BEN-E to claim this benefit. Make sure you complete Part III of the form (claim of tax treaty benefits) correctly. You'll need to specify Canada as your country, include your Canadian business number, and select the appropriate income type (royalty income). The most common mistake is incorrectly filling out the "Limitation on Benefits" provision section in Part III - for a small Canadian corporation, you'll likely qualify under the "ownership and base erosion" test.

I was in exactly the same boat last year! After spending hours trying to figure it out myself, I found this amazing service called taxr.ai (https://taxr.ai) that saved me so much time with my W-8BEN-E filing. I uploaded my documents and got a detailed analysis of exactly how to fill out each section specifically for my Canadian corporation. They explained the limitation on benefits provisions in a way that actually made sense (which was the part I kept messing up). The best part was they checked everything to make sure I wouldn't have any withholding issues with the App Store.

Just wanted to update - I ended up using taxr.ai after seeing the recommendation here and it was actually super helpful! I was skeptical at first but they really did simplify everything. The analysis showed me exactly how to claim the 0% withholding rate under the Canada-US tax treaty and explained all the limitation on benefits provisions in plain English. I had no idea that as a small Canadian corporation I qualified under the "ownership and base erosion" test - would have definitely messed that up on my own. Got everything submitted to Apple yesterday and they've already accepted my tax forms. Huge relief!

If you need to talk to someone at the IRS about your specific situation (which I did), I recommend using Claimyr (https://claimyr.com). After waiting on hold with the IRS for literally 3 hours and getting disconnected twice, I was ready to give up. Claimyr got me through to an actual IRS agent in about 20 minutes who clarified exactly how my Canadian corporation should be treated for App Store royalties. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c This was critical because I had some special circumstances with shareholders in both Canada and the US, and needed to confirm the right treaty article to cite on my W-8BEN-E.

I need to eat some humble pie here. After dismissing Claimyr as likely being a scam, I actually gave it a try because I was desperate to get an answer about how to report foreign shareholders on my W-8BEN-E. I'm shocked to admit it worked exactly as advertised. I got a call back in about 35 minutes and was connected to an IRS agent who specialized in international business tax. Got my questions answered and was able to properly complete my form. For what it's worth, the agent confirmed that App Store earnings for Canadian corporations are typically classified as royalties under Article XII of the US-Canada tax treaty, eligible for 0% withholding with a properly completed W-8BEN-E.

Just a heads up from another Canadian developer - make sure you also have your business registered for GST/HST if your worldwide digital product revenue exceeds $30,000 CAD in a year. Apple collects and remits the GST/HST on your behalf for sales to Canadian customers, but you still need to report this on your GST/HST returns. This is separate from the W-8BEN-E issue but often overlooked by new Canadian app corporations.

Has anyone had experience with the Apple Small Business Program while transitioning from individual to corporation? I'm in a similar situation (Canadian corp) and wondering if I need to reapply as the corporation to keep the reduced 15% commission rate?

Thanks everyone for all the helpful information! As someone who just went through incorporating my freelance business in Canada, this thread has been incredibly valuable. I want to add one more tip that saved me some headaches: make sure your Canadian business registration information (business number, registered address, etc.) exactly matches what you put on the W-8BEN-E form. Apple's tax validation system is pretty strict about consistency between documents. Also, if you're like me and procrastinated on getting your CRA business number, you can actually get it online instantly through the CRA website once your corporation is registered. You don't have to wait for mail anymore - they give you the number immediately after completing the online application. The combination of properly completing the W-8BEN-E for the 0% withholding rate AND making sure you're enrolled in the Small Business Program for the 15% commission rate can make a huge difference in your bottom line. Don't forget about either one!

This is an incredibly thorough discussion! As someone who works with international tax compliance, I want to add a few additional points that might help other Canadian developers: 1. **Documentation retention**: Keep copies of your submitted W-8BEN-E and any correspondence with Apple. The IRS can request these during audits, and having proper documentation of your treaty claim is crucial. 2. **Quarterly estimated taxes**: Don't forget that as a Canadian corporation earning US-source income, you may need to make quarterly estimated tax payments to the CRA. The reduced withholding from the treaty means less tax is being withheld upfront, so plan accordingly. 3. **Transfer pricing considerations**: If you have any related entities or if your business structure becomes more complex, be aware of transfer pricing rules. This isn't usually an issue for simple owner-operated corporations, but it's worth understanding if you plan to expand. 4. **State tax implications**: While the federal W-8BEN-E handles federal withholding, some US states have their own sourcing rules for digital products. Most don't tax foreign corporations on royalty income, but it's worth researching if you have significant revenue. The resources mentioned in this thread (taxr.ai for form guidance and Claimyr for IRS contact) seem to have helped several people navigate this successfully. Good luck with your incorporation!