Instructions For Form W-8ben(E) - Certificate Of Entities Status Of Beneficial Owner For United States Tax Withholding And Reporting (Entities) Page 5

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or a Model 2 IGA. For a list of jurisdictions treated as
Financial institution. A financial institution generally
having in effect a Model 1 or Model 2 IGA, see
means an entity that is a depository institution, custodial
institution, investment entity, or an insurance company (or
Pages/FATCA-Archive.aspx.
holding company of an insurance company) that issues
cash value insurance or annuity contracts. See
A Model 1 IGA means an agreement between the
Regulations section 1.1471-5(e).
United States or the Treasury Department and a foreign
government or one or more agencies to implement
An investment entity organized in a territory that is not
FATCA through reporting by FFIs to such foreign
also a depository institution, custodial institution, or
government or agency, followed by automatic exchange
specified insurance company is not treated as a financial
of the reported information with the IRS. An FFI in a Model
institution. Instead, it is a territory NFFE. If such an entity
1 IGA jurisdiction that performs account reporting to the
cannot qualify as an excepted NFFE as described in
jurisdiction’s government is referred to as a reporting
Regulations section 1.1472-1(c)(1) (including an excepted
Model 1 FFI.
territory NFFE), it must disclose its substantial U.S.
owners using this definition (applying the 10 percent
A Model 2 IGA means an agreement or arrangement
threshold) under Regulations section 1.1473-1(b)(1).
between the United States or the Treasury Department
and a foreign government or one or more agencies to
Foreign financial institution (FFI). A foreign financial
implement FATCA through reporting by FFIs directly to
institution (FFI) means a foreign entity that is a financial
the IRS in accordance with the requirements of an FFI
institution.
agreement, supplemented by the exchange of information
Fiscally transparent entity. An entity is treated as
between such foreign government or agency and the IRS.
fiscally transparent with respect to an item of income for
An FFI in a Model 2 IGA jurisdiction that has entered into
which treaty benefits are claimed to the extent that the
an FFI agreement with respect to a branch is a
interest holders in the entity must, on a current basis, take
participating FFI but may be referred to as a reporting
into account separately their shares of an item of income
Model 2 FFI.
paid to the entity, whether or not distributed, and must
The term reporting IGA FFI refers to both reporting
determine the character of the items of income as if they
Model 1 FFIs and reporting Model 2 FFIs.
were realized directly from the sources from which
Nonparticipating FFI. A nonparticipating FFI means an
realized by the entity. For example, partnerships, common
FFI that is not a participating FFI, deemed-compliant FFI,
trust funds, and simple trusts or grantor trusts are
or exempt beneficial owner.
generally considered to be fiscally transparent with
respect to items of income received by them.
Nonreporting IGA FFI. A nonreporting IGA FFI is an FFI
that is a resident of, or located or established in, a Model
Flow-through entity. A flow-through entity is a foreign
1 or Model 2 IGA jurisdiction that meets the requirements
partnership (other than a withholding foreign partnership),
of:
a foreign simple or foreign grantor trust (other than a
A nonreporting financial institution described in a
withholding foreign trust), or, for payments for which a
specific category in Annex II of the Model 1 or Model 2
reduced rate of, or exemption from, withholding is claimed
IGA;
under an income tax treaty, any entity to the extent the
A registered deemed-compliant FFI described in
entity is considered to be fiscally transparent with respect
Regulations section 1.1471-5(f)(1)(i)(A) through (F);
to the payment by an interest holder’s jurisdiction.
A certified deemed-compliant FFI described in
Foreign person. A foreign person includes a foreign
Regulations section 1.1471-5(f)(2)(i) through (v); or
corporation, a foreign partnership, a foreign trust, a foreign
An exempt beneficial owner described in Regulations
estate, and any other person that is not a U.S. person. It
section 1.1471-6.
also includes a foreign branch or office of a U.S. financial
Participating FFI. A participating FFI is an FFI that has
institution or U.S. clearing organization if the foreign
agreed to comply with the terms of an FFI agreement with
branch is a qualified intermediary. Generally, a payment to
respect to all branches of the FFI, other than a branch that
a U.S. branch of a foreign person is a payment to a foreign
is a reporting Model 1 FFI or a U.S. branch. The term
person.
participating FFI also includes a reporting Model 2 FFI and
GIIN. The term GIIN means a global intermediary
a QI branch of a U.S. financial institution unless such
identification number. A GIIN is the identification number
branch is a reporting Model 1 FFI.
assigned to an entity that has registered with the IRS for
Participating payee. A participating payee means any
chapter 4 purposes.
person that accepts a payment card as payment or
Hybrid entity. A hybrid entity is any person (other than
accepts payment from a third party settlement
an individual) that is treated as fiscally transparent for
organization in settlement of a third party network
purposes of its status under the Code but is not treated as
transaction for purposes of section 6050W.
fiscally transparent by a country with which the United
Payee. A payee is generally a person to whom a
States has an income tax treaty. Hybrid entity status is
payment is made regardless of whether such person is
relevant for claiming treaty benefits. A hybrid entity is
the beneficial owner. For a payment made to a financial
required to provide its chapter 4 status if it is receiving a
account, the payee is generally the holder of the financial
withholdable payment.
account. See Regulations sections 1.1441-1(b)(2) and
Intergovernmental agreement (IGA). An
1.1471-3(a)(3).
intergovernmental agreement (IGA) means a Model 1 IGA
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Instructions for Form W-8BEN-E (Rev. 7-2017)

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