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connected income under section 1446. To the extent you

Foreign partnerships, foreign simple trusts, and foreign

have an account with an FFI, your account may be subject

grantor trusts are not the beneficial owners of income paid

to reporting by the FFI under chapter 4. You must notify

to the partnership or trust. The beneficial owners of

the withholding agent, payer, or FFI within 30 days of

income paid to a foreign partnership are generally the

becoming a U.S. citizen or resident alien. You may be

partners in the partnership, provided that the partner is not

required to provide a Form W-9. For more information,

itself a partnership, foreign simple or grantor trust,

see Form W-9 and its instructions.

nominee, or other agent. The beneficial owners of income

paid to a foreign simple trust (that is, a foreign trust that is

You may be a U.S. resident for tax purposes

described in section 651(a)) are generally the

depending on the number of days you are

beneficiaries of the trust, if the beneficiary is not a foreign

physically present in the United States over a

partnership, foreign simple or grantor trust, nominee, or

CAUTION

3-year period. See Pub. 519, available at

IRS.gov/

other agent. The beneficial owners of a foreign grantor

Pub519. If you satisfy the substantial presence test, you

trust (that is, a foreign trust to the extent that all or a

must notify the withholding agent, payer, or financial

portion of the income of the trust is treated as owned by

institution with which you have an account within 30 days

the grantor or another person under sections 671 through

and provide a Form W-9.

679) are the persons treated as the owners of the trust.

The beneficial owners of income paid to a foreign complex

Definitions

trust (that is, a foreign trust that is not a foreign simple

trust or foreign grantor trust) is the trust itself.

Account holder. An account holder is generally the

For purposes of section 1446, the same beneficial

person listed or identified as the holder or owner of a

owner rules apply, except that under section 1446 a

financial account. For example, if a partnership is listed as

foreign simple trust rather than the beneficiary provides

the holder or owner of a financial account, then the

the form to the partnership.

partnership is the account holder, rather than the partners

of the partnership (subject to some exceptions). However,

The beneficial owner of income paid to a foreign estate

an account that is held by a single-member disregarded

is the estate itself.

entity is treated as held by the entity's single owner.

Note. A payment to a U.S. partnership, U.S. trust, or

Amounts subject to withholding. Generally, an amount

U.S. estate is treated as a payment to a U.S. payee that is

subject to chapter 3 withholding is an amount from

not subject to 30% withholding under chapter 3 or 4. A

sources within the United States that is fixed or

U.S. partnership, trust, or estate should provide the

determinable annual or periodical (FDAP) income. FDAP

withholding agent with a Form W-9. For purposes of

income is all income included in gross income, including

section 1446, a U.S. grantor trust or disregarded entity

interest (as well as OID), dividends, rents, royalties, and

shall not provide the withholding agent a Form W-9 in its

compensation. FDAP income does not include most gains

own right. Rather, the grantor or other owner shall provide

from the sale of property (including market discount and

the withholding agent the appropriate form.

option premiums), as well as other specific items of

Chapter 3. Chapter 3 means chapter 3 of the Internal

income described in Regulations section 1.1441-2 (such

Revenue Code (Withholding of Tax on Nonresident Aliens

as interest on bank deposits and short-term OID).

and Foreign Corporations). Chapter 3 contains sections

For purposes of section 1446, the amount subject to

1441 through 1464.

withholding is the foreign partner’s share of the

Chapter 4. Chapter 4 means chapter 4 of the Internal

partnership’s effectively connected taxable income.

Revenue Code (Taxes to Enforce Reporting on Certain

Generally, an amount subject to chapter 4 withholding

Foreign Accounts). Chapter 4 contains sections 1471

is an amount of U.S. source FDAP income that is also a

through 1474.

withholdable payment as defined in Regulations section

Deemed-compliant FFI. Under section 1471(b)(2),

1.1473-1(a). The exemptions from withholding provided

certain FFIs are deemed to comply with the regulations

for under chapter 3 are not applicable when determining

under chapter 4 without the need to enter into an FFI

whether withholding applies under chapter 4. For specific

agreement with the IRS. However, certain

exceptions applicable to the definition of a withholdable

deemed-compliant FFIs are required to register with the

payment, see Regulations section 1.1473-1(a)(4)

IRS and obtain a Global Intermediary Identification

(exempting, for example, certain nonfinancial payments).

Number (GIIN). These FFIs are referred to as registered

Beneficial owner. For payments other than those for

deemed-compliant FFIs. See Regulations section

which a reduced rate of, or exemption from, withholding is

1.1471-5(f).

claimed under an income tax treaty, the beneficial owner

Disregarded entity. A business entity that has a single

of income is generally the person who is required under

owner and is not a corporation under Regulations section

U.S. tax principles to include the payment in gross income

301.7701-2(b) is disregarded as an entity separate from

on a tax return. A person is not a beneficial owner of

its owner. A disregarded entity does not submit this Form

income, however, to the extent that person is receiving the

W-8BEN to a partnership for purposes of section 1446 or

income as a nominee, agent, or custodian, or to the extent

to an FFI for purposes of chapter 4. Instead, the owner of

the person is a conduit whose participation in a

such entity provides appropriate documentation. See

transaction is disregarded. In the case of amounts paid

Regulations section 1.1446-1 and section 1.1471-3(a)(3)

that do not constitute income, beneficial ownership is

(v), respectively.

determined as if the payment were income.

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Instructions for Form W-8BEN (Rev. 7-2017)

Instructions For Form W-8ben - Certificate Of Foreign Status Of Beneficial Owner For United States Tax Withholding And Reporting (Individuals) - 2017 Page 3

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