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Jim Bakker explains the purpose of Form W8 BENE, which is a certificate of status for beneficial owners of US tax withholding and reporting. This form is necessary when a US entity makes reportable payments to a foreign entity. Reportable payments include dividends, rents, royalties, premiums, annuities, and compensation. If a foreign entity receives these payments, the US entity must withhold 30 percent of the payment and remit it to the IRS.
