Instructions For Form W-8imy - Certificate Of Foreign Intermediary, Foreign Flow-Through Entity, Or Certain U.s. Branches For United States Tax Withholding And Reporting Page 5

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Certain entities that are disregarded for U.S. tax purposes
Hybrid entity. A hybrid entity is any person (other than an
may nevertheless be treated as treaty residents for purposes
individual) that is treated as fiscally transparent (rather than
of claiming treaty benefits under an applicable tax treaty (see
as a beneficial owner) under the Code but is not treated as
the definition of hybrid entity, later). See Form W-8BEN-E
fiscally transparent by a country with which the United States
and the accompanying instructions for more information
has an income tax treaty. Hybrid entity status is relevant for
about a hybrid entity claiming treaty benefits on its own
claiming treaty benefits for purposes of chapter 3. A hybrid
behalf as a resident of a treaty jurisdiction.
entity, may, however, be considered the payee for purposes
of chapter 4 (see Regulations section 1.1471-3(a) defining
Financial account. A financial account includes:
who is a payee of a withholdable payment). See the special
A depository account maintained by an FFI;
instructions for hybrid entities, later, and Regulations section
A custodial account maintained by an FFI;
1.1471-3(d) for the documentation requirements with respect
Equity or debt interests (other than interests regularly
to entities receiving withholdable payments.
traded on an established securities market) in investment
entities and certain holding companies, treasury centers, or
Intergovernmental Agreement (IGA). An IGA means a
financial institutions;
Model 1 IGA or a Model 2 IGA. For a list of jurisdictions
Certain cash value insurance contracts; and
treated as having in effect a Model 1 or Model 2 IGA, go to
Annuity contracts.
For purposes of chapter 4, exceptions are provided for
FATCA-Archive.aspx.
accounts such as certain tax-favored savings accounts, term
A Model 1 IGA means an agreement between the United
life insurance contracts, accounts held by estates, escrow
States or the Treasury Department and a foreign government
accounts, and certain annuity contracts. See Regulations
or one or more agencies to implement FATCA through
section 1.1471-5(b)(2). Accounts may also be excluded from
reporting by FFIs to such foreign government or agency
the definition of financial account under an applicable IGA.
thereof, followed by automatic exchange of the reported
information with the IRS. An FFI in a Model 1 IGA jurisdiction
Financial institution. A financial institution generally
that performs account reporting to the jurisdiction’s
means an entity that is a depository institution, custodial
government is referred to as a reporting Model 1 FFI.
institution, investment entity, or an insurance company (or
holding company of an insurance company) that issues cash
A Model 2 IGA means an agreement or arrangement
value insurance or annuity contracts. See Regulations
between the United States or the Treasury Department and a
section 1.1471-5(e).
foreign government or one or more agencies to implement
FATCA through reporting by FFIs directly to the IRS in
Fiscally transparent entity. An entity is treated as fiscally
accordance with the requirements of an FFI agreement,
transparent with respect to an item of income to the extent
supplemented by the exchange of information between such
that the interest holders in the entity must, on a current basis,
foreign government or agency thereof and the IRS. An FFI in
take into account separately their shares of an item of income
a Model 2 IGA jurisdiction that registered with the IRS to
paid to the entity, whether or not distributed, and must
obtain a GIIN and agreed to comply with the terms of an FFI
determine the character of the items of income as if they
agreement with respect to a branch is treated as a
were realized directly from the sources from which realized
participating FFI but may be referred to as a reporting
by the entity. For example, partnerships, common trust funds,
Model 2 FFI.
and simple trusts or grantor trusts are generally considered
The term reporting IGA FFI refers to both reporting
to be fiscally transparent with respect to items of income
Model 1 FFIs and reporting Model 2 FFIs.
received by them.
Intermediary. An intermediary is any person that acts as a
Flow-through entity. A flow-through entity is a foreign
custodian, broker, nominee, or otherwise as an agent for
partnership (other than a withholding foreign partnership), a
another person, regardless of whether that other person is
foreign simple or foreign grantor trust (other than a
the beneficial owner of the amount paid, a flow-through
withholding foreign trust), or, for payments for which a
entity, or another intermediary.
reduced rate of withholding is claimed under an income tax
treaty, any entity to the extent the entity is considered to be
Qualified intermediary (QI). A QI is a person that is a
fiscally transparent with respect to the payment by an interest
party to a withholding agreement with the IRS (described in
holder’s jurisdiction.
Regulations section 1.1441-1(e)(5)(iii)) and is:
A foreign financial institution (other than a U.S. branch of
Foreign financial institution (FFI). A foreign financial
an FFI) that is a participating FFI (including a reporting Model
institution (FFI) generally means a foreign entity that is a
2 FFI), a registered deemed-compliant FFI (including an FFI
financial institution.
treated as a deemed-compliant FFI under an applicable IGA
Foreign person. A foreign person includes a nonresident
subject to due diligence and reporting requirements similar to
alien individual, a foreign corporation, a foreign partnership, a
those applicable to a registered deemed-compliant FFI under
foreign trust, a foreign estate, and any other person that is
Regulations section 1.1471-5(f)(1), including the requirement
not a U.S. person. It also includes a foreign branch or office
to register with the IRS), or any other category of FFI
of a U.S. financial institution or U.S. clearing organization if
identified in the QI agreement;
the foreign branch is a qualified intermediary. Generally, a
A foreign person that is a home office or has a branch that
payment to a U.S. branch of a foreign person is a payment to
is an eligible entity (as described in Regulations section
a foreign person.
1.1441-1(e)(6)(ii), without regard to the requirement that the
person be a qualified intermediary);
Global intermediary identification number (GIIN). A
A foreign branch or office of a U.S. financial institution or a
GIIN is the identification number assigned to an entity that
foreign branch or office of a U.S. clearing organization; or
has registered with the IRS for chapter 4 purposes.
A foreign entity not described above that the IRS accepts
as a qualified intermediary.
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Instructions for Form W-8IMY (Rev. 6-2017)

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