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Interpretation of "active trade or business test" on Form W-8BEN-E

April 21, 2021
March 28, 2023

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Q. When a company chooses the box "Company with an item of income that meets active trade or business test" in Part III, line 14 b, of the W-8BEN-E does it mean that they are a foreign company doing business only outside the US or does it mean that they have a presence in the US? Would this apply to most foreign companies selling services or goods to domestic companies?  A. (Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory…

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