W-8BEN-E for a Danish ApS or A/S: ordinary interest and royalties at 0%, and a sample PDF
This article was created with AI assistance and has not been reviewed by a human editor. It is provided for general informational purposes only and does not constitute tax, legal, or financial advice.
Treaty articles and rates on this page are checked against the US-Denmark Income Tax Convention signed at Washington on August 19, 1999, together with the Protocol signed at Copenhagen on May 2, 2006 — last verified September 2026. The 2006 Protocol omitted Article 10 (Dividends) and Article 22 (Limitation on Benefits) and substituted new text. Articles 7, 11, 12, and 14 were not replaced. The 1948 convention is not in force. The IRS documents page still lists that 1948 PDF.
AI-generated imageA Danish ApS invoices a US client, and accounts payable asks for a W-8BEN-E before they pay. Service fees with no US permanent establishment cite Article 7(1) at 0%. A software license and a film royalty both cite Article 12(1) at 0%: Article 12(2) only defines royalties, and unlike the Austria treaty there is no separate film rate. On Line 14b you certify Limitation on Benefits under the 2006 Protocol's Article 22. For an operating ApS that is Active trade or business, Article 22(4)(a). The 1999 Article 22 was omitted. "No LOB article in treaty" is the wrong box.
This guide uses the current IRS line numbers (Rev. October 2021) for that case: Baltic ApS, Active NFFE, no US permanent establishment, claiming Article 7(1) at 0% on service fees. It also covers the protocol dividend split (5% / 15%, and a narrow 0% only at 80% of the voting power), ordinary interest at 0% under Article 11(1), and why contingent interest is not that 0% rate.
If you are not incorporated — an Enkeltmandsvirksomhed working under your own CPR number — you file Form W-8BEN, not this form: start the W-8BEN wizard. Independent personal services are Article 14(1). Cite Article 14(1), not Article 14 without a paragraph and not Article 14(2). This page is for incorporated businesses.
Or skip the reading and start the W-8BEN-E wizard — guided questions, a suggested treaty article and rate, and a signature-ready PDF for $30.
Blank form or already filled in?
You can download the official blank form from the IRS and complete it yourself, or get the same file filled from your answers. Read the 1999 convention and the 2006 protocol together. The protocol is the operative text for dividends and Limitation on Benefits.
- Blank official W-8BEN-E (IRS, free): Download W-8BEN-E as a PDF directly from the IRS — for an ApS or an A/S.
- Blank official W-8BEN (IRS, free): Download W-8BEN as a PDF directly from the IRS — for an Enkeltmandsvirksomhed.
- 1999 Convention: Income Tax Treaty PDF on IRS.gov — Articles 7, 11, 12, and 14. The IRS page labels this file 2000. Do not use the 1999 Article 10 or Article 22.
- 2006 Protocol: Protocol PDF on IRS.gov — this replaced Article 10 and Article 22 in full.
- IRS treaty documents page: Denmark tax treaty documents. The 1948 PDF on that page is not the treaty in force.
- Already filled in (5–10 minutes): W-8BEN-E for Danish companies ($30) or W-8BEN for an individual ($5) — treaty article and rate suggested automatically, ready to sign as a PDF.
Which Danish company type are you actually dealing with?
The Chapter 3 box depends on the legal form, not on revenue:
- Aktieselskab (A/S) Always a Corporation for US tax purposes. 26 CFR 301.7701-2(b)(8)(i) lists "Denmark, Aktieselskab" as a per se corporation. There is no Form 8832 election.
- Anpartsselskab (ApS) The usual startup and small-company form, and the example name in the wizard is Baltic ApS. It is not on the per se list. Members have limited liability, so it defaults to Corporation, but it can elect a different US classification on Form 8832. A single-member ApS is not disregarded by default.
- Enkeltmandsvirksomhed An individual registration, not a separate legal entity. The person files Form W-8BEN and cites Article 14(1), not this form and not Article 7.
- I/S and K/S An Interessentskab (I/S) or Kommanditselskab (K/S) is a partnership-style form, not a Corporation by default. Do not check Corporation only because the business has more than one owner.
An ApS that has not filed Form 8832 checks Corporation on Line 4. An A/S checks Corporation too, and it cannot elect out.
Do not put a personal CPR number on the company form. A CPR is 10 digits (the wizard example for a person is 1234567890). The company identifier is the CVR, 8 digits. The sample company uses 12345678.
Who actually needs to fill in W-8BEN-E?
Any Danish ApS or A/S that receives payments from a US business and wants to document non-US status. Common situations:
- Consulting or software invoices A US client asks for the form before paying service fees.
- Royalties or a software license The payer needs a treaty claim before applying 0% instead of 30%.
- A broker or platform Danish investors meet Form W-8BEN at Saxo, Nordnet, Danske Bank, and similar brokers. Form W-8BEN-E is the company form, for an ApS or A/S billing US clients, not for a personal brokerage account.
What happens without a valid form?
Without a W-8BEN-E, the US payer generally withholds 30% of the gross payment under the nonresident alien rules, even when the treaty would reduce that rate. Service fees with no US permanent establishment can be 0% under Article 7(1). Ordinary interest is 0% under Article 11(1). A software license and a film royalty are both 0% under Article 12(1). Ordinary dividends are still 15% under Protocol Article 10(2)(b) unless a reduced-rate test is met. Some platforms hold the payment until a valid form is on file.
The form stays with the US payer. It is not filed with SKAT or the IRS. Danish tax on the same income is a separate question.
W-8BEN-E line by line: what a Danish ApS actually enters
Official IRS line numbers for an operating ApS, Active NFFE, claiming treaty benefits. An A/S uses the same lines except that it cannot elect out of Corporation. An Enkeltmandsvirksomhed does not use this form.
| Line | What you enter |
|---|---|
| Line 1 | The company's legal name, for example Baltic ApS. |
| Line 2 | Country of incorporation: Denmark. |
| Line 3 | Leave blank unless a disregarded entity is receiving the payment for its owner. |
| Line 4 | Corporation for an A/S (always) or an ApS (the default, unless Form 8832 says otherwise). The hybrid follow-up is usually No. |
| Line 5 | Chapter 4 (FATCA) status. An operating company with no financial business is usually Active NFFE. |
| Line 6 | The registered office. The sample uses Ostergade 5, 2. th., Copenhagen, 1100. |
| Line 7 | Only if the mailing address differs from Line 6. |
| Line 8 | Usually blank. A US TIN is required only in the cases the payer names. |
| Line 9a | Leave blank. A GIIN is for financial institutions. |
| Line 9b | The company's CVR number, 8 digits, as the foreign TIN. Do not enter a personal CPR number, which is 10 digits. |
| Line 9c | Not checked for a registered company that has a CVR number. |
| Line 10 | Usually blank unless the payer asks for a reference number. |
| Part II (Lines 11–13) | Not completed for an ordinary ApS. Part II is for disregarded entities and branches. |
| Line 14a | Country of residence for treaty purposes: Denmark. Part III is filled when you claim the treaty rate. |
| Line 14b | Limitation on Benefits. The 2006 Protocol replaced Article 22. An operating ApS certifies Active trade or business under Article 22(4)(a). "No LOB article in treaty" is the wrong box. Article 22(2)(g) is a special test for a Danish taxable nonstock corporation, not the default for an ApS. |
| Line 14c | Not normally checked. |
| Line 15 | For service fees with no US permanent establishment: Article 7(1), 0%, Services. For a software license or a film royalty: Article 12(1), 0%, Royalties. Cite Article 12(1), not Article 12(2). Article 12(2) only defines royalties. Equipment rental is Article 7(1), not Article 12. |
| Line 39 (Part XXV) | Check the Active NFFE certification if Line 5 is Active NFFE. |
| Part XXX | Signature, printed name, and date. The sample is signed by Mette Hansen. |
Line numbers match Rev. October 2021. If the IRS issues a new revision, follow the numbering on the PDF you sign.
The guided W-8BEN-E wizard fills these lines from your answers, including the article and rate on Line 15.
A/S, ApS, and an Enkeltmandsvirksomhed are not the same box
The per se list names only the Aktieselskab. An ApS is still a Corporation by default, and an Enkeltmandsvirksomhed is not a company at all.
| Point | What it means |
|---|---|
| Aktieselskab (A/S) | Per se corporation under 26 CFR 301.7701-2(b)(8)(i). Check Corporation. Form 8832 cannot change that. |
| Anpartsselskab (ApS) | Not on the per se list. Limited liability means the default is still Corporation. A different US classification requires a filed Form 8832. |
| Enkeltmandsvirksomhed | Individual registration. File Form W-8BEN. Cite Article 14(1) for independent services, never Article 7 and never Article 12. |
| CVR vs CPR | Line 9b on this form is the 8-digit CVR. The 10-digit CPR belongs on Form W-8BEN. |
Use the default that matches the company you actually registered, unless a Form 8832 election is already on file.
What a completed W-8BEN-E looks like for a Danish ApS
An anonymised example: Baltic ApS, Active NFFE, no US permanent establishment, claiming Article 7(1) at 0% on service fees and certifying Active trade or business on Line 14b. This is the PDF the wizard produces from the same inputs.
For illustration only. The company name, address, signer, and CVR number are fictional. Example: Baltic ApS, Copenhagen, CVR 12345678, Chapter 3 Corporation, FATCA Active NFFE, US-Denmark treaty Article 7(1) (Business Profits) 0%, Limitation on Benefits Active trade or business.
Treaty rates by income type
These rates come from the 1999 Convention plus the 2006 Protocol. Dividends and Limitation on Benefits follow the protocol. Interest, royalties, business profits, and independent personal services follow the 1999 text.
| Income type | Article | Rate |
|---|---|---|
| Services / consulting (Business Profits, no US permanent establishment) | Article 7(1) | 0% |
| Equipment rental (tangible personal property; Article 7(7), not a royalty) | Article 7(1) | 0% |
| Dividends, company holding directly at least 10% of the share capital | Article 10(2)(a) | 5% |
| Dividends, general rate (under 10% of the share capital, or any holder who does not meet 10(2)(a)) | Article 10(2)(b) | 15% |
| Dividends, company that has owned 80% or more of the voting power for 12 months and meets an Article 22 test in 10(3)(a) | Article 10(3) | 0% |
| Interest, ordinary cash loan (not contingent interest, not a REMIC excess inclusion) | Article 11(1) | 0% |
| Contingent interest (determined by receipts, sales, income, profits, cash flow, property value, or a related dividend) | Article 11(5)(a) | 15% |
| Royalties, including software and cinematographic films (Article 12(2) is the definition) | Article 12(1) | 0% |
| Independent personal services, individual with no fixed base in the United States | Article 14(1) | 0% |
On Line 15, cite Article 12(1) for a software license and for a film royalty. Article 12(2) defines royalties and includes computer software and cinematographic films. It is not a rate paragraph, and Denmark has no Austria-style film rate of up to 10%. Do not copy Austria Article 12(2) onto Denmark. Equipment rental is not inside that definition. Article 7(7) puts rental of tangible personal property in business profits, so equipment with no US permanent establishment cites Article 7(1) at 0%. Ordinary interest cites Article 11(1) at 0%. Article 11(2) is the definition. Article 11(5)(a) taxes contingent interest at the Article 10(2)(b) rate of 15%, and Article 11(5)(b) leaves a REMIC excess inclusion to domestic law. Do not cite Article 11(5) for an ordinary cash loan, and do not describe interest as having no exceptions. The 5% dividend rate is Protocol Article 10(2)(a), and the test is 10% of the share capital, not voting stock. The general rate is 10(2)(b) at 15%. Protocol Article 10(3) is 0% only for a company that has owned 80% or more of the voting power for 12 months and meets one of the Article 22 tests named there, or for a qualified governmental entity or a qualifying pension fund. Do not default an ordinary ApS to 0%. The 1999 Article 10(3) was a RIC/REIT rule; that paragraph was omitted. RIC and REIT rules are now Protocol Article 10(4). Do not cite the branch-tax paragraphs for a company with no US permanent establishment.
An Enkeltmandsvirksomhed cites Article 14(1), not Article 7
Article 14(1) applies to an individual resident performing personal services of an independent character. That income is taxable only in the residence state unless the individual has a fixed base regularly available in the other state. If the fixed base exists, only the income attributable to it from services performed in that other state may be taxed there. Article 14(2) only says that amount is determined under Article 7(3). It is not a second test and not the paragraph you write on Line 15. There is no day-count test in Article 14. The day-count test for employment wages is in Article 15(2)(a). A remote freelancer working from Denmark, with no fixed base regularly available in the United States, cites Article 14(1) at 0%. An ApS does not cite Article 14.
A blog post, or the finished PDF?
Generic European guides often copy one royalty rate onto every country, or they still use the 1999 dividend article. The wizard asks those questions once and returns the PDF.
| Point | This page | A generic guide |
|---|---|---|
| Article numbers | Article 7(1) for services and equipment, Article 12(1) for software and films, Article 14(1) for a freelancer. | Often cites Article 12(2) as a film rate, the way the Austria treaty does. |
| Line 14b | Active trade or business under Protocol Article 22(4)(a). | Sometimes uses the omitted 1999 Article 22, or says there is no LOB article. |
| Finished form | Sample PDF for Baltic ApS, plus a wizard that fills yours. | A checklist you still have to type into the IRS PDF. |
Start the wizard and download the filled PDF.
Frequently asked questions about W-8BEN-E for Danish companies
Direct answers for an ApS or A/S billing US clients or receiving US investment income.
Which article do I cite for consulting fees?
Article 7(1), at 0% if the ApS has no permanent establishment in the United States. Do not cite Article 12 or Article 14 for the company.
I am an Enkeltmandsvirksomhed, not an ApS. Which form and which article?
Form W-8BEN, Article 14(1), at 0% when you have no fixed base regularly available in the United States. Cite Article 14(1), not Article 14 without a paragraph and not Article 14(2). Do not cite Article 7.
Is a software license 0%, and what about a film?
Both cite Article 12(1) at 0%. Article 12(2) defines royalties and includes computer software and cinematographic films. It is not the rate paragraph. Denmark does not have Austria's separate film rate of up to 10%.
Is equipment rental a royalty?
No. Article 7(7) treats rental of tangible personal property as business profits. With no US permanent establishment, cite Article 7(1) at 0%, not Article 12.
Is interest really 0% with no exceptions?
Ordinary interest is Article 11(1) at 0%. That is not every interest payment. Article 11(5)(a) lets the United States tax contingent interest at 15%, the Article 10(2)(b) rate. Article 11(5)(b) leaves a REMIC excess inclusion to domestic law. Do not cite Article 11(5) for an ordinary cash loan.
What do I check on Line 14b?
Active trade or business, which is Article 22(4)(a) of the 2006 Protocol. The 1999 Article 22 was omitted. "No LOB article in treaty" does not apply to Denmark. Article 22(2)(f) is the ownership-and-base-erosion test, not the default for an operating ApS.
Why is the dividend rate 15%, not 0%?
Protocol Article 10(2)(b) is 15% for a holder who does not meet the 10% share-capital test. 10(2)(a) is 5% when a company holds directly at least 10% of the share capital. 10(3) is 0% only when a company has owned 80% or more of the voting power for 12 months and meets an Article 22 test named in that paragraph. The 1999 Article 10(3) was a RIC/REIT rule and is no longer the text.
A/S or ApS on Line 4?
Both check Corporation unless the ApS has filed Form 8832. Only "Denmark, Aktieselskab" is on the per se list. The ApS is a Corporation by default because of limited liability.
CPR or CVR on Line 9b?
The company's CVR, 8 digits. The sample uses 12345678. A CPR is the 10-digit personal number and belongs on Form W-8BEN, not on the company form.
Related guides
More on the form itself:
- Company form: W-8BEN-E wizard for an ApS or A/S
- Not a company: W-8BEN wizard for an individual ($5)
- Chapter 3 status: Chapter 3 status guide
Common mistakes to avoid
- Putting a CPR on the company form Line 9b is the 8-digit CVR. A CPR is 10 digits and belongs on Form W-8BEN.
- Citing Article 12(2) as the royalty rate The rate is Article 12(1) at 0%, including films and software. Paragraph 12(2) only defines royalties.
- Copying Austria's film rate Austria Article 12(2) can tax films at up to 10%. Denmark has no matching film paragraph.
- Calling every interest payment 0% Ordinary interest is Article 11(1) at 0%. Contingent interest is Article 11(5)(a) at 15%.
- Using the 1999 dividend article The 2006 Protocol replaced Article 10. The old Article 10(3) was a RIC/REIT rule, not the 0% parent-subsidiary rate.
- Checking No LOB article Protocol Article 22 is a real Limitation on Benefits article. An operating ApS certifies Active trade or business under 22(4)(a).
- Citing Article 14 without a paragraph Article 14(1) is the rate paragraph for an individual. Article 14(2) only points to Article 7(3) for the computation.
A note on Danish tax
This page is about US withholding. It does not determine how Denmark taxes the same income, and it does not calculate Danish tax on US dividends.
Company tax, VAT, and whether a dividend meets the 80% voting-power test are questions for a Danish accountant. The W-8BEN-E only tells the US payer which treaty rate to apply at source.
Ready to fill the form with the Danish article numbers?
The wizard asks the same questions as this page and suggests the article and rate on Line 15.