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Certain entities that are disregarded for U.S. tax

implement FATCA through reporting by FFIs directly to

purposes may be recognized for purposes of claiming

the IRS in accordance with the requirements of an FFI

treaty benefits under an applicable tax treaty (see the

agreement, supplemented by the exchange of information

definition of hybrid entity below). A hybrid entity claiming

between such foreign government or agency and the IRS.

treaty benefits is required to complete Form W-8BEN-E.

An FFI in a Model 2 IGA jurisdiction that has entered into

See Form W-8BEN-E and its instructions.

an FFI agreement with respect to a branch is a

participating FFI, but may be referred to as a reporting

Financial account. A financial account includes:

Model 2 FFI.

A depository account maintained by a financial

institution;

Nonresident alien individual. Any individual who is not

A custodial account maintained by a financial

a citizen or resident alien of the United States is a

institution;

nonresident alien individual. An alien individual meeting

Equity or debt interests (other than interests regularly

either the “green card test” or the “substantial presence

traded on an established securities market) in investment

test” for the calendar year is a resident alien. Any person

entities and certain holding companies, treasury centers,

not meeting either test is a nonresident alien individual.

or financial institutions as defined in Regulations section

Additionally, an alien individual who is treated as a

1.1471-5(e);

nonresident alien pursuant to Regulations section

Cash value insurance contracts; and

301.7701(b)-7 for purposes figuring the individual's U.S.

Annuity contracts.

tax liability, or an alien individual who is a bona fide

For purposes of chapter 4, exceptions are provided for

resident of Puerto Rico, Guam, the Commonwealth of the

accounts such as certain tax-favored savings accounts;

Northern Mariana Islands, the U.S. Virgin Islands, or

term life insurance contracts; accounts held by estates;

American Samoa is a nonresident alien individual. See

escrow accounts; and annuity contracts. These

Pub. 519 for more information on resident and

exceptions are subject to certain conditions. See

nonresident alien status.

Regulations section 1.1471-5(b)(2). Accounts may also

Even though a nonresident alien individual

be excluded from the definition of financial account under

married to a U.S. citizen or resident alien may

an applicable IGA.

choose to be treated as a resident alien for certain

CAUTION

Financial institution. A financial institution generally

purposes (for example, filing a joint income tax return),

means an entity that is a depository institution, custodial

such individual is still treated as a nonresident alien for

institution, investment entity, or an insurance company (or

chapter 3 withholding tax purposes on all income except

holding company of an insurance company) that issues

wages. For purposes of chapter 4, a nonresident alien

cash value insurance or annuity contracts.

individual who holds a joint account with a U.S. person will

be considered a holder of a U.S. account for chapter 4

Foreign financial institution (FFI). An FFI generally

purposes.

means a foreign entity that is a financial institution.

Foreign person. A foreign person includes a

Participating FFI. A participating FFI is an FFI that has

nonresident alien individual and certain foreign entities

agreed to comply with the terms of an FFI agreement with

that are not U.S. persons (entities should complete Form

respect to all branches of the FFI, other than a branch that

W-8BEN-E rather than this Form W-8BEN).

is a reporting Model 1 FFI or a U.S. branch. The term

“participating FFI” also includes a reporting Model 2 FFI

Hybrid entity. A hybrid entity is any person (other than

and a qualified intermediary (QI) branch of a U.S. financial

an individual) that is treated as fiscally transparent for

institution, unless such branch is a reporting Model 1 FFI.

purposes of its status under the Code but is not treated as

fiscally transparent by a country with which the United

Participating payee. A participating payee means any

States has an income tax treaty. Hybrid status is relevant

person that accepts a payment card as payment or

for claiming treaty benefits.

accepts payment from a third-party settlement

organization in settlement of a third-party network

Intergovernmental agreement (IGA). An IGA means a

transaction.

Model 1 IGA or a Model 2 IGA. For a list of jurisdictions

treated as having in effect a Model 1 or Model 2 IGA, see

Payment settlement entity (PSE). A PSE is a

the list of jurisdictions at

merchant acquiring entity or third-party settlement

center/tax-policy/treaties/Pages/FATCA-Archive.aspx.

organization. Under section 6050W, a PSE is generally

required to report payments made in settlement of

A Model 1 IGA means an agreement between the

payment card transactions or third-party network

United States or the Treasury Department and a foreign

transactions. However, a PSE is not required to report

government or one or more agencies to implement

payments made to a beneficial owner that is documented

FATCA through reporting by FFIs to such foreign

as foreign with an applicable Form W-8.

government or agency, followed by automatic exchange

of the reported information with the IRS. An FFI in a Model

Recalcitrant account holder. A recalcitrant account

1 IGA jurisdiction that performs account reporting to the

holder includes an individual who fails to comply with the

jurisdiction’s government is referred to as a reporting

requests of an FFI for documentation and information for

Model 1 FFI.

determining the U.S. or foreign status of the individual’s

account, including furnishing this Form W-8BEN when

A Model 2 IGA means an agreement or arrangement

requested.

between the United States or the Treasury Department

and a foreign government or one or more agencies to

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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 4

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