U.S. tax information for foreign vendors

All foreign vendors receiving payments for services performed in the U.S. (as defined elsewhere) are required to complete an IRS Form W-8 (W-8BEN, W-8ECI, W-8EXP, W-8IMY or 8233) unless one is already on file with PacifiCorp. All W-8 forms, Form 8233 and all instructions are available on the IRS website.

If the U.S. does not have a tax treaty with the foreign vendor's country of residence that exempts payments from U.S. federal income tax withholding, or if a valid Form W-8 or 8233 has not been correctly completed before payment is processed, 30 percent of the total payment to the foreign vendor may be withheld by PacifiCorp and remitted to the IRS.

A list of existing tax treaties between the U.S. and other countries is found in IRS Publication 901, U.S. Tax Treaties.

Based on a vendor's completed Form W-8 and/or Form 8233 or a vendor's failure to submit the appropriate form, PacifiCorp will determine whether withholding is required and at what percentage. If the payment is subject to 30% federal tax withholding, PacifiCorp will pay 70% of the approved portion of the requested amount and will submit the 30% to the IRS. Foreign vendors will be responsible for filing the necessary documents with the IRS to obtain a refund of the 30%, if permitted.

In order to be valid for tax treaty exemption, both the Form W-8 and Form 8233 (for individuals) require a U.S. taxpayer identification number.

Payments for the following types of services are subject to the policy. Note that this is not an all-inclusive list.

• Consulting
• Engineering
• Repairs and/or maintenance
• Construction
• Fabrication
• Installation
• Site supervision
• Commissioning of equipment
• Electric utility trading
• Training
• Computer software services, including design, development, implementation, support, warranties, maintenance, training, Web site design, Web site hosting and certain software licenses
• Communication services
• Leasing of real or personal property
• Use of intellectual property (patents, copyrights, etc.)
• Media advertising
• Accounting
• Legal
• Licensing
• Transportation

Only payments for services performed in the U.S. are subject to this policy. However, the IRS considers many services performed in the U.S. if the recipients of those services are located in the U.S. As examples, the following are subject to this policy:

• Website hosting performed in India where the website's visitors are located in the U.S.
• Use of a Swedish patent in an industrial process located in the U.S.
• Telephone and web-based conferencing services provided by a Canadian vendor where the users are located in the U.S.

Generally, this policy does not apply to the purchase of tangible property. However, if embedded services are included in the purchase, those services must be valued separately and are subject to this policy. An example of an embedded service might include the purchase of equipment for use in the U.S. where the vendor's engineers assist with installation at our U.S. plant.

All new foreign vendors receiving payment(s) subject to this policy in a calendar year must have an IRS Form W-8 or 8233 on file with PacifiCorp.

Existing foreign vendors are also required to complete a W-8 or 8233 if not already on file. In addition, a retroactive statement for the time period in which our companies have done business is required to confirm that the information prior to the date on the W-8 or 8233 is correct.

W-8s and 8233s must be originals. No facsimiles will be accepted. 

PacifiCorp may consider you to be a foreign vendor based on a foreign address in our files. If you are actually a U.S. business entity, citizen or resident, please complete and submit Form W-9 (PDF).

Foreign vendors complete IRS W-8 form (W-8BEN, W-BEN-E, W-8ECI, W-8EXP, or W-8IMY) (and retroactive statement if an existing vendor). A brief summary of the purpose of each of the Forms W-8 is provided below with links to the form and its instructions:

Form no.	Instructions	Retroactive statements (applies to existing vendors only)
W-8BEN	Instructions	Retroactive statement W-8BEN
W-8BEN-E	Instructions	Retroactive statement W-8BEN-E
W-8ECI	Instructions	Retroactive statement W-8ECI
W-8EXP	Instructions	Retroactive statement W-8EXP
W-8IMY	Instructions	Retroactive statement W-8IMY
8233	Instructions	Retroactive statement 8233

Form W-8BEN (Certification of Foreign Status of Beneficial Owner for Unites States Tax Withholding - Individuals) is for foreign individuals to provide their identifying information in Part I and certify in Part III that they are not U.S. taxpayers. The Form W-8BEN is also used to exempt certain types of payments from the 30% federal income tax withholding required under U.S. tax law (see Part II). For a valid tax treaty exemption, the recipient must provide either a U.S. tax identification number on line 5 or a foreign tax identification number on line 6.

Form W-8BEN-E (Certification of Foreign Status of Beneficial Owner for Unites States Tax Withholding - Entities) is the most common form used by foreign entities to certify their status under the following two withholding regimes under US tax law: (1) Internal Revenue Code (IRC) Chapter 3 withholding of tax on US source income of foreign entities, and (2) IRC Chapter 4 withholding of tax to enforce reporting on certain foreign accounts pursuant to the Foreign Account Tax Compliance Act (FATCA). Entities are required to provide their identifying information as well as FATCA classification type in Part I, and certify in Part XXIX the entity as not a US person and the entity’s status under FATCA. Part III of the form is used to claim a treaty exemption for certain types of payments from the 30% federal income tax withholding required under Chapter 3. Parts IV-XXVIII of the form contain separate certifications for each type of FATCA classification for which entities need only focus on the particular section that corresponds to their FATCA classification type selected in Part I. For a valid tax treaty exemption, the recipient must provide a U.S. tax identification number on line 8 or Foreign tax identification number on line 9b.

Form W-8ECI (Certification of Foreign Person's Claim that Income is Effectively Connected with the Conduct of a Trade or Business in the U.S.) is for exemption from withholding on income effectively connected with a trade or business in the United States. The form stipulates that the foreign entity files yearly U.S. tax returns to report all income claimed to be effectively connected with a U.S. trade or business. In order for the form to be completed properly, a U.S. tax identification number must be provided.

Form W-8EXP (Certification of Foreign Government or Other Foreign Organization for United States Tax Withholding) is used by foreign tax-exempt organizations to claim and document their tax-exempt status under U.S. tax law. To claim exemption from U.S. tax withholding, foreign tax-exempt organizations must provide documentation of their U.S. tax-exempt status. Foreign entities that cannot establish their U.S. tax-exempt status will be subject to 30% U.S. federal income tax withholding from their payments.

Form W-8IMY (Certification of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for U.S. Tax Withholding) is used for reporting payments to "flow-through entities" such as foreign partnerships or trusts.

Form 8233 (Exemption from Withholding on Compensation for Independent [and Certain Dependant] Personal Services of a Nonresident Alien individual) is used by individual vendors who are eligible for tax treaty benefits to claim exemption from U.S. federal tax withholding.

PacifiCorp will be able to approve your Form W-8 or 8233 more quickly if it is properly completed. PacifiCorp does not provide tax advice so we strongly recommend you consult with your tax advisor before choosing and completing the appropriate Form W-8 or 8233. You may wish to consider these suggestions as you complete the form. While our suggestions pertain to Form W-8BEN and W-8ECI (the most common forms), similar suggestions would apply to whichever form is appropriate to the foreign vendor.

1. Read the form's instructions carefully.
   
2. Complete all applicable lines or boxes.
   
3. Do not abbreviate the name of your home country.
   
4. Do not use a post office box or in-care-of address where indicated on the form.
   
5. To claim treaty benefits, enter your U.S. taxpayer identification number (line 6).
   
6. Please include your foreign tax identification number (line 7).
   
7. Read the certification statement above the signature line carefully.
   
8. Sign and date the form and include your title where indicated.
   
9. Specific Form W-8BEN suggestions: 
   a. Check all boxes on line 9 that apply.
   b. If the U.S. has a treaty with the vendor's home country, it is common to see boxes 9a, 9b and 9c all checked.
   c. Read the instructions for line 10 before completing it.
   
10. Specific Form W-8ECI suggestions:
    a. Remember that foreign vendors submitting this form must file a U.S. income tax return.
    b. On line 9, describe the type of income you expect to receive from PacifiCorp.

Business entities can obtain an Employer Identification Number (EIN) by completing Form SS-4.

Form SS-4 (Application for Employer Identification Number)

Read instuctions for this form

Note that foreign vendors do not have to have employees in order to obtain an EIN. The EIN is the federal taxpayer identification number for business entities in the U.S. The instructions to the Form SS-4 indicate several ways to submit it. The IRS has established a special phone number (267-941-1099) for foreign applicants who wish to expedite the process.

While PacifiCorp does not provide tax advice, you may wish to consider checking the "Compliance with IRS withholding regulations" box under Form SS-4, Line 10 (Reason for Applying), if you have no other purpose for applying than to claim treaty benefits.

Individuals can obtain either a Social Security Number (SSN) or Individual Taxpayer Identifiction Number (ITIN), depending on the individual's circumstances. Generally, individuals must visit a local office of the Social Security Administration to obtain an SSN. ITINS can be obtained by filing a completed Form W-7 with the IRS.

Form W-7

The appropriate Form W-8, 8233, or W-9 must be submitted to PacifiCorp's Tax Department for review and approval. The IRS requires that PacifiCorp maintain the ORIGINAL Form W-8 or 8233 (with an original signature). However, we recommend that foreign vendors first submit the form via fax (503-813-6710) or email (foreign.vendor@pacificorp.com) so that PacifiCorp's Tax Department can review the form before you submit the original. The IRS has strict guidelines on accepting the forms, and our advance review will allow us to identify errors or omissions before you submit the original form.

If you are an existing vendor, be sure to submit a retroactive statement with your Form W-8 or 8233.

If you have questions regarding these forms or PacifiCorp's policy, please email foreign.vendor@pacificorp.com.

PacifiCorp, its subsidiaries, its affiliates and its employees do not provide tax advice. All vendors should consult with their tax advisors regarding these matters.