U.S.A.: IRS added explanatory notes related to W-8BEN-E (rev. April 2016)
Following our Taxflash T16014, dated 20 April 2016 and Announcement A16161, dated 3 April 2016, Clearstream Banking would like to inform customers, that the U.S. Internal Revenue Service (IRS) updated the revised version of Form W-8BEN-E on 24 May 2017.
In addition to the W-8BEN-E (rev. April 2016) Instructions published on IRS website, the IRS has added a page to the Form W-8BEN-E (rev. April 2016) to highlight the changes compared to the W-8BEN-E (rev. February 2014). Information about the main items in the update are detailed below and are applicable from 1 January 2017:
Foreign TINs
A foreign person that is an account holder of a financial account held at a U.S. office of a financial institution (including a U.S. branch of an FFI) that receives U.S. source income reportable on Form 1042-S associated with the W-8BEN-E must provide the taxpayer identification number (TIN) issued to it by its jurisdiction of tax residence on line 9b of the form unless:
- it has not been issued a TIN;
- the jurisdiction does not issue TINs; or
- the foreign person is a government, central bank of issue, international organization, or resident of a U.S. possession.
If a foreign person (other than a government, central bank of issue, international organisation, or resident of a U.S. possession) described in the preceding sentence does not provide its TIN on line 9b, it must provide the withholding agent with an explanation of why it has not been issued a TIN. The explanation may be provided on a separate attached sheet associated with the Form W-8BEN-E or written in the margins of the form.
Sponsored FFI, Sponsored Direct Reporting NFFE, and Nonreporting IGA FFI GIINs
From 1 January 2017, a sponsored FFI that is a registered deemed-compliant FFI and a sponsored direct reporting NFFE is required to have obtained its own GIIN. The GIIN of the sponsored entity is reported on line 9a of Form W-8BEN-E.
The complete “Updated Information for Form W-8BEN-E (Revision Date April 2016)” is attached to the W-8BEN-E available on IRS website.
We continue to monitor the market and will provide more information as it becomes available.
This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |