If you are a non-resident of the United States, you can apply to the IRS for an ITIN (Individual Taxpayer Identification Number).
Additionally, if your country of residence has a financial agreement with the United States, you can apply for a reduced rate of levy. In order to make this request, you will need to have an ITIN. If you have a tax identification number in your country of residence (known as “foreign TIN”), you can indicate it in the place indicated on the W-8 form. If you are a non-U.S. Legal person, you have the option of applying for an EIN (Employer Identification Number, the equivalent of a social security number for corporations) by completing Form SS-4 (Form SS4, Application for Employer Identification Number). We recommend that you call in a tax advisor or a virtual CFO who can assist you in these steps.
ITIN stands for “Individual Taxpayer Identification Number” and can be applied for by people who cannot get a US social security number. As a rule, these are people who do not have US citizenship or a Green Card and are also not employed in the USA. ITIN numbers can only be requested by natural persons. Companies use Form SS-4 to apply to obtain an EIN.
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WHAT DO I NEED AN ITIN FOR?
If you need to file a US tax return, you will need a US tax number. You will also need a U.S. tax number, among other things, if you are married to a U.S. person and want to be assessed in the U.S. together, or if you receive U.S. income and qualify for a lower withholding tax rate based on a double taxation agreement.
HOW DO I GET AN ITIN?
The Individual Taxpayer Identification Number is requested using Form W-7 from the US Treasury (IRS). Accredited copies of documents proving your identity and nationality must be submitted with Form W-7. Alternatively, you can send in the original documents with the application. These are then returned by the IRS. It usually takes between 4-12 weeks for your US tax number to be communicated to you in writing.
HOW LONG IS MY ITIN VALID FOR?
ITINs that have been used on a US tax return less than once in three consecutive years, for example because you have not had to file a US tax return in the past three years, expire. In addition, US tax numbers expire that are assigned by the IRS before tax year 2013.
It was therefore pleasant for foreign taxpayers that ITIN were valid for a lifetime until some time ago. It was therefore not necessary to apply to obtain an ITIN number every time that tax incidents were only implemented at irregular intervals in the USA. As early as 2012, however, the IRS announced that all ITINs that were issued from 2013 would automatically expire after five years. Deviations from this were made in 2014, in that only those ITINs that were not used for five consecutive years were to lose their validity.
