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company resident in a treaty country that is not a member

vote and value of the company's shares be owned,

of the EU, EEA, or NAFTA. In addition, each treaty LOB

directly or indirectly, by seven or fewer equivalent

article that contains a specific test listed below may have

beneficiaries (ultimate owners who are resident in an EU,

particular requirements that must be met that differ from

EEA, or NAFTA country and are entitled to identical

the requirements in another treaty with regard to the same

benefits under their own treaty with the United States

test. Accordingly, you must check the relevant treaty LOB

under one of the ownership tests included within the LOB

article for the particular requirements associated with

article (other than the stock ownership and base erosion

each test. In general, only one LOB checkbox is required

test)). In addition, this test requires that less than 50% of

to claim a treaty exemption even if more than one

the company's gross income be paid or accrued, directly

checkbox would suffice to claim the benefits of the treaty

or indirectly, to persons who would not be equivalent

for that item of income.

beneficiaries.

Company with an item of income that meets the active

Each of the tests is summarized below for your general

trade or business test—this test generally requires that the

convenience but may not be relied upon for making a final

company be engaged in an active trade or business in its

determination that you meet an LOB test. Rather you must

country of residence, that its activities in that country be

check the text of the LOB article itself to determine which

substantial in relation to its U.S. activities, if the payer is a

tests are available under that treaty and the particular

related party, and the income be derived in connection to

requirements of those tests. See Table 4, Limitation on

or incidental to that trade or business.

Benefits, at

IRS.gov/Individuals/International-Taxpayers/

Favorable discretionary determination received—this

Tax-Treaty-Tables, for a summary of the major tests

test requires that the company obtain a favorable

within the Limitation on Benefits article that are relevant

determination granting benefits from the U.S. competent

for documenting any entity's claim for treaty benefits.

authority that, despite the company's failure to meet a

Government—this test is met if the entity is the

specific objective LOB test in the applicable treaty, it may

Contracting State, political subdivision, or local authority.

nonetheless claim the requested benefits. Unless a treaty

Tax-exempt pension trust or pension fund—this test

or technical explanation specifically provides otherwise,

generally requires that more than half the beneficiaries or

you may not claim discretionary benefits while your claim

participants in the trust or fund be residents of the country

for discretionary benefits is pending.

of residence of the trust or fund itself.

Other—for other LOB tests that are not listed above (for

Other tax-exempt organization—this test generally

example, a headquarters test). Identify the other test

requires that more than half the beneficiaries, members,

relied upon, or enter N/A if the treaty has no LOB article.

or participants of religious, charitable, scientific, artistic,

For example, if you meet the headquarters test under the

cultural, or educational organizations be residents of the

United States-Netherlands income tax treaty, you should

country of residence of the organization.

write “Headquarters test, Article 26(5)” in the space

Publicly-traded corporation—this test generally requires

provided.

the corporation's principal class of shares to be primarily

and regularly traded on a recognized stock exchange in

If an entity is claiming treaty benefits on its own behalf,

its country of residence, while other treaties may permit

it should complete Form W-8BEN-E. If an interest holder

trading in either the United States or the treaty country, or

in an entity that is considered fiscally transparent in the

in certain third countries if the primary place of

interest holder’s jurisdiction is claiming a treaty benefit,

management is the country of residence.

the interest holder should complete Form W-8BEN (if an

Subsidiary of publicly-traded corporation—this test

individual) or Form W-8BEN-E (if an entity) on its own

generally requires that more than 50% of the vote and

behalf as the appropriate treaty resident, and the fiscally

value of the company's shares be owned, directly or

transparent entity should associate the interest holder’s

indirectly, by five or fewer companies that are

Form W-8BEN or Form W-8BEN-E with a Form W-8IMY

publicly-traded corporations and that themselves meet the

completed by the fiscally transparent entity (see Hybrid

publicly-traded corporation test, as long as all companies

entities under Special Instructions, later).

in the chain of ownership are resident in either the United

An income tax treaty may not apply to reduce the

States or the same country of residence as the subsidiary.

amount of any tax on an item of income received

Company that meets the ownership and base erosion

by an entity that is treated as a domestic

test—this test generally requires that more than 50% of

CAUTION

corporation for U.S. tax purposes. Therefore, neither the

the vote and value of the company's shares be owned,

domestic corporation nor its shareholders are entitled to

directly or indirectly, by individuals, governments,

the benefits of a reduction of U.S. income tax on an item

tax-exempt entities, and publicly-traded corporations

of income received from U.S. sources by the corporation.

resident in the same country as the company, as long as

all companies in the chain of ownership are resident in the

If you are an entity that derives the income as a

same country of residence, and less than 50% of the

resident of a treaty country, you may check this

TIP

company's gross income is accrued or paid, directly or

box if the applicable income tax treaty does not

indirectly, to persons who would not be good

contain a “limitation on benefits” provision.

shareholders for purposes of the ownership test.

Company that meets the derivative benefits test—this

Line 14c. If you are a foreign corporation claiming treaty

test is generally limited to NAFTA, EU, and EEA country

benefits under an income tax treaty that entered into force

treaties, and may apply to all benefits or only to certain

before January 1, 1987 (and has not been renegotiated)

items of income (interest, dividends, and royalties). It

on (1) U.S. source dividends paid to you by another

generally requires that more than 95% of the aggregate

foreign corporation or (2) U.S. source interest paid to you

-10-

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

Instructions For Form W-8ben(E) - Certificate Of Entities Status Of Beneficial Owner For United States Tax Withholding And Reporting (Entities) Page 10

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