You are required to complete a Form W8BEN if you are a nonresident alien andearned Royalty income in this case from a USbased source.The purpose of the form is to alert the IRS to the fact you are earning incomefrom the US even though you are not a citizen or a resident of the US. The USis entitled to tax revenues from your USbased earnings and would without theform have no way of knowing about you or your income.To ensure they receive their u201cfairu201d share they require the payor to withhold30 of the payment due to you before issuing a check for the remainder toyou. If they donu2019t withhold anddonu2019t report the payment to you they may notbe able to deduct the payment as an expense and are subject to penalties forfailing to withhold not to mention forced to pay the 30 amount over andabove what they pay to you. They therefore will not release any paymentwithout receiving the Form W8BEN.Now Nepal happens not to have a tax treaty with the US. If it did and youwere subject to Nepalese taxes on that income you could claim a credit forthe taxes paid to another country up to the entire amount of the tax. Evenstill you are entitled to file a US Form 1040N as the withholding is chargedon the gross proceeds and there may be expenses that can be deducted from thatamount before arriving at the actual tax due. In that way you may be entitledto a refund of some or all of the backup withholding.That is another reason why you file the form it allows you to file a returnin order to apply for a refund.In order to complete the form you can go to the IRS website to read theinstructions or simply go here httpswww.irs.govpubirspdf...