If you are hiring a foreign contractor, you will need to have them complete IRS Form W8BEN. If you contract with a foreign company or selfemployed workers who operate under a business entity, you'll need to collect IRS Form W8BENE.Understand tax requirements when hiring a foreign contractor. Our guide provides essential insights for seamless compliance with international tax laws. The equivalent form for overseas contractors is W8BEN. Misclassifying an individual as an independent contractor in a foreign country could result in foreign tax liability. This guide will help you learn how to hire overseas contractors and pay them compliantly. How to hire overseas contractors in a foreign country. US company hiring a foreign independent contractor living in another country. Collect Form W-8BEN(E) from the contractor as proof of status.