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income described in Regulations section 1.1441-2 (such

Chapter 4 status. The term chapter 4 status means a

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

person’s status as a U.S. person, specified U.S. person,

For purposes of section 1446, the amount subject to

foreign individual, participating FFI, deemed-compliant

withholding is the foreign partner’s share of the

FFI, restricted distributor, exempt beneficial owner,

partnership’s effectively connected taxable income.

nonparticipating FFI, territory financial institution,

excepted NFFE, or passive NFFE.

Beneficial owner. For payments other than those for

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

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

claimed under an income tax treaty, the beneficial owner

certain FFIs are deemed to comply with the regulations

of income is generally the person who is required under

under chapter 4 without the need to enter into an FFI

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

agreement with the IRS. However, certain

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

deemed-compliant FFIs are required to register with the

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

IRS and obtain a GIIN. These FFIs are referred to as

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

registered deemed-compliant FFIs. See Regulations

the person is a conduit whose participation in a

section 1.1471-5(f)(1).

transaction is disregarded. In the case of amounts paid

Disregarded entity. A business entity that has a single

that do not constitute income, beneficial ownership is

owner and is not a corporation under Regulations section

determined as if the payment were income.

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

Foreign partnerships, foreign simple trusts, and foreign

its owner. Generally, a disregarded entity does not submit

grantor trusts are not the beneficial owners of income paid

this Form W-8BEN-E to a withholding agent. Instead, the

to the partnership or trust. The beneficial owners of

owner of such entity provides the appropriate

income paid to a foreign partnership are generally the

documentation (for example, a Form W-8BEN-E if the

partners in the partnership, provided that the partner is not

owner is a foreign entity). However, if a disregarded entity

itself a partnership, foreign simple or grantor trust,

receiving a withholdable payment is an FFI outside the

nominee or other agent. The beneficial owners of income

single owner’s country of organization or has its own GIIN,

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

its foreign owner will be required to complete Part II of

described in section 651(a)) are generally the

Form W-8BEN-E to document the chapter 4 status of the

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

disregarded entity receiving the payment.

partnership, foreign simple or grantor trust, nominee, or

Certain entities that are disregarded for U.S. tax

other agent. The beneficial owners of income paid to a

purposes may be treated as treaty residents for purposes

foreign grantor trust (that is, a foreign trust to the extent

of claiming treaty benefits under an applicable tax treaty

that all or a portion of the income of the trust is treated as

or may be recognized as FFIs under an applicable IGA. A

owned by the grantor or another person under sections

hybrid entity claiming treaty benefits on its own behalf is

671 through 679) are the persons treated as the owners of

required to complete Form W-8BEN-E. See Hybrid

the trust. The beneficial owners of income paid to a

Entities under Special Instructions, later.

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

A disregarded entity with a U.S. owner or a disregarded

foreign simple trust or foreign grantor trust) is the trust

entity with a foreign owner that is not otherwise able to fill

itself.

out Part II (that is, because it is in the same country as its

For purposes of section 1446, the same beneficial

single owner and does not have a GIIN) may provide this

owner rules apply, except that under section 1446 a

form to an FFI solely for purposes of documenting itself for

foreign simple trust rather than the beneficiary provides

chapter 4 purposes. In such a case, the disregarded entity

the form to the partnership.

should complete Part I as if it were a beneficial owner and

The beneficial owner of income paid to a foreign estate

should not complete line 3.

is the estate itself.

Financial account. A financial account includes:

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

A depository account maintained by an FFI;

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

A custodial account maintained by an FFI;

not subject to 30% withholding for purposes of chapters 3

Equity or debt interests (other than interests regularly

and 4. A U.S. partnership, trust, or estate should provide

traded on an established securities market) in investment

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

entities and certain holding companies, treasury centers,

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

or financial institutions as defined in Regulations section

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

1.1471-5(e);

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

Certain cash value insurance contracts; and

the withholding agent the appropriate form.

Annuity contracts.

Chapter 3. Chapter 3 means chapter 3 of the Internal

For purposes of chapter 4, exceptions are provided for

Revenue Code (Withholding of Tax on Nonresident Aliens

accounts such as certain tax-favored savings accounts,

and Foreign Corporations). Chapter 3 contains sections

term life insurance contracts, accounts held by estates,

1441 through 1464.

escrow accounts, and certain annuity contracts. These

exceptions are subject to certain conditions. See

Chapter 4. Chapter 4 means chapter 4 of the Internal

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

Revenue Code (Taxes to Enforce Reporting on Certain

be excluded from the definition of financial account under

Foreign Accounts). Chapter 4 contains sections 1471

an applicable IGA.

through 1474.

-4-

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 4

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