If your country of residence for tax purposes has issued you a tax identifying number, enter it here. A Model 2 IGA means an agreement or arrangement between the United States or the Treasury Department and a foreign government or one or more agencies to implement FATCA through reporting by FFIs directly to the IRS in accordance with the requirements of an FFI agreement, supplemented by the exchange of information between such foreign government or agency and the IRS. Foreign source interest, dividends, rents, or royalties. .An income tax treaty may not apply to reduce the amount of any tax on an item of income received by an entity that is treated as a domestic corporation for U.S. tax purposes. If you are a foreign government or political subdivision of a foreign government (including wholly owned agencies and instrumentalities thereof), government of a U.S. possession, or foreign central bank of issue (each as defined in Regulations section 1.1471-6) you must check the box and certify that you meet all of the requirements for this status (including that you do not engage in the type of commercial financial activities described on this line except to the extent permitted under Regulations section 1.1471-6(h)(2)). However, if you determine your status under the definitions of the IGA and can certify to a chapter 4 status included on this form, you do not need to provide the certifications described in this paragraph unless required by the FFI to whom you are providing this form. Check the one box that applies. An FFI in an IGA jurisdiction with which you have an account may provide you with a chapter 4 status certification other than as shown in Parts IV through XXVIII in order to satisfy its due diligence requirements under the applicable IGA. Do not enter the tax identifying number of your owner(s). Complete lines 6, 7, and 8 as provided in the specific instructions, earlier. . In addition, section 1446(f) generally requires a transferee of a partnership interest (or a broker in the case of a transfer of a PTP interest) to withhold on the amount realized from the transfer when any portion of the gain from the transfer is treated as effectively connected gain under section 864(c)(8). You may also use Form W-8BEN-E to identify income from a notional principal contract that is not effectively connected with the conduct of a trade or business in the United States to establish the exception to reporting such income on Form 1042-S. See Regulations section 1.1461-1(c)(2)(ii)(F). The Foreign Account Tax Compliance Act - Withholding rules Instead, provide Form W-8ECI, Certificate of Foreign Persons Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. Partner Jurisdiction Financial Institution definition - Law Insider See Regulations section 1.1472-1(c)(1)(iv)(A) for additional detail for the definition of passive income. FATCA Registration Country Jurisdiction Listing For definitions of terms used throughout these instructions, see Definitions, later. However, if a disregarded entity receiving a withholdable payment is an FFI outside the single owners country of organization or has its own GIIN, its foreign owner will be required to complete Part II of Form W-8BEN-E to document the chapter 4 status of the disregarded entity receiving the payment. If you own the income with one or more other persons, the income will be treated by the withholding agent as owned by a foreign person that is a beneficial owner of a payment only if Form W-8BEN or W-8BEN-E (or other applicable document) is provided by each of the owners. If you are an international organization other than an international organization described on line 28a, you must check the box to certify that you satisfy all of the requirements for this status. If you are an entity that is established and maintained in a jurisdiction that is treated as having in effect an IGA and you are described in Annex I as a nonprofit organization that is an Active NFFE, see Entities Providing Certifications Under an Applicable IGA under Special Instructions, later. Instead, use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, as applicable. If you are treated as a registered deemed-compliant FFI under an applicable IGA, you should check "Nonreporting IGA FFI" rather than "registered deemed-compliant FFI" and provide your GIIN. 515 for an additional discussion of section 1446(f) withholding, including the effective dates of each provision. If you receive certain types of income, you must provide Form W-8BEN-E to: Claim that you are the beneficial owner of the income for which Form W-8BEN-E is being provided or a partner in a partnership subject to section 1446; and. If you are a limited life debt investment entity, you must check the box to certify that you meet all of the requirements for this certified deemed-compliant status. Forms 1042 PDF, 1042-S, and Form 1042-T PDF are used to report amounts withheld under Chapter 3 or Chapter 4. If you are giving Form W-8BEN-E to claim a reduced rate of, or exemption from, withholding under an income tax treaty, you must determine residency in the manner required by the treaty. . The Foreign Account Tax . For such a case, you must also check the "yes" box to indicate that you are a hybrid entity making a treaty claim. Do not enter your GIIN on line 9. In addition to the requirements of chapter 3, chapter 4 requires withholding agents to identify the chapter 4 status of entities that are payees receiving withholdable payments. Your permanent residence address is the address in the country where you claim to be a resident for purposes of that countrys income tax. A foreign reverse hybrid entity claiming treaty benefits on behalf of its owners should provide the withholding agent with Form W-8IMY (including its chapter 4 status when receiving a withholdable payment) along with a withholding statement and Forms W-8BEN or W-8BEN-E (or documentary evidence to the extent permitted) on behalf of each of its owners claiming treaty benefits. Instead, the entity must provide an applicable Form W-8 or Form W-9 pertaining to each grantor or owner, as appropriate, and, in the case of a trust, a statement identifying the portion of the trust treated as owned by each such person. Include a citation to the applicable provision in the Regulations. A Model 1 IGA means an agreement between the United States or the Treasury Department and a foreign government or one or more agencies to implement FATCA through reporting by FFIs to such foreign government or agency, followed by automatic exchange of the reported information with the IRS. Open an account at a bank in . If you are an excepted nonfinancial group entity in liquidation or bankruptcy you must check the box to certify that you meet all of the requirements for this status. A foreign financial institution (FFI) means a foreign entity that is a financial institution. Check this box to certify that you are an international organization described in section 7701(a)(18). If you are a participating FFI, registered deemed-compliant FFI (including a sponsored FFI described in the Treasury regulations), reporting Model 1 FFI, reporting Model 2 FFI, direct reporting NFFE, trustee of a trustee-documented trust that is a foreign person providing this form for the trust, or sponsored direct reporting NFFE, you are required to enter your GIIN (with regard to your country of residence) on line 9a. .If you are an account holder providing this form to an FFI solely for purposes of documenting yourself as an account holder and you are not receiving a withholdable payment or reportable amount (as defined in Regulations section 1.1441-1(e)(3)(vi)), you should complete Part I by substituting the references to "beneficial owner" with "account holder." PDF Agreement between the Government of the United States of America and Chapter 3 means chapter 3 of the Internal Revenue Code (Withholding of Tax on Nonresident Aliens and Foreign Corporations). FATCA obliges all U.S. paying agents to withhold tax, at a rate of 30 per cent, from payments of United States ("U.S.") source income to non-U.S. persons who are classified as "Financial Institutions" ("FIs") unless that FI is located in a country which has entered into an IGA with the U.S. Internal Revenue Service ("IRS") to report information . PDF FATCA Intergovernmental Agreement between the United States - Revenue Tax-exempt pension trust or pension fundthis test generally requires that more than half the beneficiaries or participants in the trust or fund be residents of the country of residence of the trust or fund itself. Peru - Corporate - Other issues - Worldwide Tax Summaries Online An account holder is generally the person listed or identified as the holder or owner of a financial account. For example, under the United States-Italy treaty, to claim the 5% dividend rate, the Italian corporation must own 25% of the voting stock for a 12-month period. If you are a certified deemed-compliant nonregistering local bank, you must check the box to certify that you meet all of the requirements for this certified deemed-compliant status. The US and Its "Reciprocal" IGA's - Oh, Really? - Angloinfo See, Electronic Federal Tax Payment System (EFTPS), Instructions forForm W-8BEN-E - Introductory Material, Part I Identification of Beneficial Owner, FFIs Covered by an IGA and Related Entities, Non-Profit Organizations Covered by an IGA, Part II Disregarded Entity or Branch Receiving Payment. Chapter 4 also requires participating FFIs and certain registered deemed-compliant FFIs to document their entity account holders in order to determine their chapter 4 statuses regardless of whether withholding applies to any payments made to the entities. For purposes of section 1446(f), the amount subject to withholding is the amount realized on the transfer of a partnership interest. You are not required to complete a chapter 4 status certification if you are not the payee of withholdable payment or you do not hold an account with an FFI requesting this form. A foreign reverse hybrid entity also may not use this form to attempt to claim treaty benefits on its own behalf. See Regulations section 1.1471-5(f)(1). A payment settlement entity is a merchant acquiring entity or third party settlement organization. If you would be a passive NFFE but for the fact that you are managed by certain types of financial institutions (see Regulations section 1.1471-5(e)(4)(i)(B)), you should not complete line 40a as you would be considered a financial institution and not a passive NFFE. A foreign person includes a foreign corporation, a foreign partnership, a foreign trust, a foreign estate, and any other person that is not a U.S. person. These instructions have been updated to reference the use of this form by an entity (other than a partnership, simple trust, or grantor trust) that is a foreign seller of a life insurance contract or that is a foreign person and a recipient of a reportable death benefit for purposes of reporting under section 6050Y. In the space provided for an explanation, you may write that you are the beneficial owner of the dividends, you are a resident of Germany, you have directly owned shares representing 80% or more of the voting power of the company paying the dividends for the 12-month period ending on the date the entitlement to the dividend is determined, and that you satisfy the conditions of Article 28(2)(f)(aa) and (bb) and Article 28(4) of the treaty with respect to the dividends. Giving Form W-8BEN-E to the withholding agent. You should complete only one part of Parts IV through XXVIII certifying to your chapter 4 status (if required). 9890) concerning the use of electronic signatures on withholding certificates. An exempt beneficial owner described in Regulations section 1.1471-6. Any certifications provided under an applicable IGA remain subject to the penalty of perjury statement and other certifications made in Part XXX. A depository account maintained by an FFI; A custodial account maintained by an FFI; Equity or debt interests (other than interests regularly traded on an established securities market) in investment entities and certain holding companies, treasury centers, or financial institutions as defined in Regulations section 1.1471-5(e); Certain cash value insurance contracts; and. A GIIN is the identification number assigned to an entity that has registered with the IRS for chapter 4 purposes. If you are a disregarded entity or branch, do not enter your business name. If the Country B branch receiving the payment is a disregarded entity you may be required to provide its legal name on line 3. Chapter 4 contains sections 1471 through 1474. If any of the income for which you have provided a Form W-8BEN-E becomes effectively connected, this is a change in circumstances and the Form W-8BEN-E is no longer valid. For purposes of section 1446(f), the grantor or owner must provide an applicable Form W-8 or Form W-9 to certify its status and the amount realized allocable to the grantor or owner, which, alternatively, can be provided by the U.S. grantor trust on behalf of a grantor or owner. See Regulations section 1.1472-1(c)(1)(iii) for the definition of an excepted territory NFFE. Instead, provide the GIIN of your branch (if applicable) on line 13. For example, if you are a partnership making a treaty claim, you may want to provide information for the withholding agent to associate this Form W-8BEN-E with the Form W-8IMY and owner documentation you provide for purposes of establishing the chapter 4 status of your owner(s). Enter your mailing address only if it is different from the address on line 6. Form W-8BEN-E may also be used to claim an exemption from withholding for portfolio interest pursuant to section 881(c). Check the box to certify that you have provided or will provide the documentation set forth in the certifications, including the FFI owner reporting statement and the valid documentation for each person identified on the FFI owner reporting statement described on line 24b. If you are reporting controlling U.S. persons (as defined in an applicable IGA) to a Model 1 FFI or reporting Model 2 FFI with which you maintain an account that requests such ownership information with this form, you may use this space or attach a separate statement to report such persons. You must provide Form W-8EN-E to the 6050Y(b) issuer (as defined under Regulations section 1.6050Y-1(a)(8)(iii)), to establish your foreign status if you are a foreign entity (other than a partnership, simple trust or grantor trust) that is the seller of a life insurance contract under section 6050Y(b) (excluding a payment of effectively connected income). By checking a box, you are representing that you qualify for the classification indicated. .A restricted distributor may certify only with respect to an account it maintains in connection with a distribution agreement with a restricted fund. A particular treaty might not include every type of test for which a checkbox is provided. See Hybrid Entity Making a Claim of Treaty Benefits under Special Instructions, later. For example, "Company that meets the derivative benefits test" is generally not available to a company resident in a treaty country that is not a member of the EU, EEA, or USMCA. If your branch is receiving the payment and is required to be identified in Part II, you are not required to provide a GIIN on line 9a. Company with an item of income that meets the active trade or business testthis test generally requires that the company be engaged in an active trade or business in its country of residence, that its activities in that country be substantial in relation to its U.S. activities, if the payer is a related party, and the income be derived in connection to or incidental to that trade or business. .If you are an entity that derives the income as a resident of a treaty country, you must check the box "No LOB article in treaty" if the applicable income tax treaty does not contain a "limitation on benefits" provision.. An intergovernmental agreement (IGA) means a Model 1 IGA or a Model 2 IGA. Instructions for Form W-8BEN-E (10/2021) - Internal Revenue Service The provisions in the section 1446(f) regulations relating to withholding and reporting on transfers of interests in partnerships that are not PTPs generally apply to transfers occurring after January 29, 2021. See Foreign Reverse Hybrid Entities,later. If you are a disregarded entity with a single owner or branch of an FFI, the single owner, if such owner is a foreign person, should provide Form W-8BEN or Form W-8BEN-E (as appropriate). If you are a disregarded entity or branch, do not enter your business name. If you are a restricted distributor you must check the box to certify that you meet all of the requirements for this status. See Regulations section 1.1472-1(c)(1)(i) to determine if the stock of an entity is regularly traded on an established securities market (substituting the term "U.S. entity" for "NFFE," as appropriate, for purposes of testing whether an entity is publicly traded). Branches for United States Tax Withholding and Reporting. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. An EIN is a U.S. taxpayer identification number (TIN) for entities. For example, indicate "investment entity wholly owned by exempt beneficial owners" rather than "exempt beneficial owner." ABC Co. should not enter its GIIN on line 9, and the Country B branch should complete this Part II by identifying itself as a reporting Model 1 IGA FFI and providing its GIIN on line 13. You must identify the IGA by entering the name of the jurisdiction that has the IGA treated as in effect with the United States, and indicate whether it is a Model 1 or Model 2 IGA. See Regulations sections 1.1446-1 through 1.1446-6 (for documentation requirements under section 1446(a)) and Regulations sections 1.1446(f)-2 and 1.1446(f)-4 (for documentation requirements under section 1446(f)). Persons claiming treaty benefits on interest other than the generally applicable rate. A disregarded entity with a U.S. owner or a disregarded entity with a foreign owner that is not otherwise able to fill out Part II (that is, because it is in the same country as its single owner and does not have a GIIN) may provide this form to an FFI solely for purposes of documenting itself for chapter 4 purposes. Instead, provide Form W-8IMY. .Only entities that are tax-exempt under section 501(c) should check the "Tax-exempt organization" box for purposes of line 4. Generally, an amount subject to chapter 3 withholding is an amount from sources within the United States that is fixed or determinable annual or periodical (FDAP) income (including such an amount on a PTP distribution unless indicated otherwise). Company that meets the ownership and base erosion testthis test generally requires that more than 50% of the vote and value of the company's shares be owned, directly or indirectly, by individuals, governments, tax-exempt entities, and publicly-traded corporations resident in the same country as the company, as long as all companies in the chain of ownership are resident in the same country of residence, and less than 50% of the company's gross income is accrued or paid, directly or indirectly, to persons who would not be good shareholders for purposes of the ownership test.