Taxation FAQs

With the Taxation module enabled, Tipalti collects tax forms and other required compliance documents from payees via the iFrame or Supplier Hub.

You can set the tax form collection ability per operating unit (i.e., entityAn entity can be a subsidiary, division, business unit, brand, etc. of your organization. Entities can have similar or different AP processes and workflows.). The appropriate entity can then be assigned to payees so that they can access the relevant tax form from within the iFrame/ Supplier Hub. Please submit a request to our Support Team for assistance in assigning tax forms to entities.

For US tax forms, Tipalti provides payees a tax form questionnaire in the iFrame/ Supplier Hub to help determine the required form. Click here to view the tax form questionnaire.

Most forms can be completed via Tipalti's online wizard, but some forms need to be completed manually. Click here for further information on electronic and manual tax forms.

According to the IRSInternal Revenue Service "Instructions for the Requester of Forms W-8" document (Line 8), date of birth is only needed on the W-8BEN form if the withholding agent (the payer) is a US financial institution.

Tipalti assigns tax form and document statuses in the Tipalti Hub so that you can track progression. These statuses display on the TAX INFO row on the "Payees" tab (see Find payee tax information). Click here for descriptions of tax form and document statuses.

The following tax forms are available:

• US W-9 tax forms
• US W-8 tax forms
  • W-8BEN
  • W-8BEN-E
  • W-8ECI
  • W-8IMY
  • W-8EXP
  • 8233

Federal withholding rates are applied to US-sourced income and the rates are based on treaty country and income type. For a complete list of withholding rates, click here. For further tax withholding information, refer to US-sourced income.

It is only applicable when "Other Income (Services)" has been selected as the income type on a tax form. Refer to Certificate of No U.S. Activities, which describes the differences in withholding rates when the certificate is signed and when it is not signed for electronic and manual tax forms.

The following tax forms are valid for the year signed plus three following calendar years. After this time, the forms expire automatically and payees are notified via email.

• W-8BEN
• W-8BEN-E
• W-8ECI
• W-8EXP

The 8233 form expires annually from the date signed and the W-8IMY and W-9 forms have no expiration.

Depending on the type of US tax form and information entered by the payee, the payee may be required to provide additional documents for verification and/ or an explanation as to why certain information was entered. For further details, click here.

Payees claiming treaty benefits on the W-8BEN-E form may need to satisfy the LOBLimitation on Benefits article of that treaty.