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 - 2016 Page 6

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Qualified derivatives dealer (QDD). A QDD is a
redemption) of a short-term obligation that is effected outside
qualified intermediary that is an eligible entity that agrees to
the United States. It also does not include amounts of original
meet the requirements of Regulations section 1.1441-1(e)(6)
issue discount arising from a sale and repurchase transaction
(i) and the QI agreement. An eligible entity is defined in
completed within a period of 2 weeks or less, or amounts
Regulations section 1.1441-1(e)(6)(ii).
described in Regulations section 1.6049-5(b)(7), (10), or (11)
(relating to certain obligations issued in bearer form).
To act as a QDD, the home office or branch, as
applicable, must qualify and be approved for QDD status and
Reverse hybrid entity. A reverse hybrid entity is any
must represent itself as a QDD on its Form W-8IMY and
person (other than an individual) that is not fiscally
separately identify the home office or branch as a recipient
transparent under U.S. tax law principles but that is fiscally
on a withholding statement (if required). Each home office or
transparent under the laws of a jurisdiction with which the
branch that obtains QDD status is treated as a separate
United States has an income tax treaty.
QDD.
Territory financial institution. The term territory financial
Qualified securities lender (QSL). Notice 2010-46,
institution means a financial institution that is incorporated or
available at IRS.gov/irb/2010-24_IRB/ar09.html, provided
organized under the laws of any U.S. territory. However, an
rules for QSLs acting with respect to payments of substitute
investment entity that is not also a depository institution,
dividends. A QSL should certify to its QSL status in Part III of
custodial institution, or specified insurance company is not a
this form, even if it is not a qualified intermediary. An entity
territory financial institution. A territory financial institution
will no longer be able to claim QSL status as of January 1,
acting as an intermediary or that is a flow-through entity may
2018.
agree to be treated as a U.S. person under Regulations
Nonqualified intermediary. A nonqualified intermediary
section 1.1441-1(b)(2)(iv)(A).
is any intermediary that is not a U.S. person and that is not a
Withholdable payment. The term withholdable payment is
qualified intermediary.
defined in Regulations section 1.1473-1(a).
Nonreporting IGA FFI. A nonreporting IGA FFI is an FFI
Withholding agent. Any person, U.S. or foreign, that has
that is a resident of, or located or established in, a Model 1 or
control, receipt, custody, disposal, or payment of U.S. source
Model 2 IGA jurisdiction that meets the requirements of:
FDAP income subject to chapter 3 or a withholdable payment
A nonreporting financial institution described in a specific
under chapter 4 is a withholding agent. The withholding
category in Annex II of the Model 1 or Model 2 IGA;
agent may be an individual, corporation, partnership, trust,
A registered deemed-compliant FFI described in
association, or any other entity, including (but not limited to)
Regulations section 1.1471-5(f)(1)(i)(A) through (F);
any foreign intermediary, foreign partnership, and U.S.
A certified deemed-compliant FFI described in
branches of certain foreign banks and insurance companies.
Regulations section 1.1471-5(f)(2)(i) through (v); or
An exempt beneficial owner described in Regulations
For purposes of section 1446, the withholding agent is the
section 1.1471-6.
partnership conducting the trade or business in the United
States. For a publicly traded partnership, the withholding
Nonwithholding foreign partnership, simple trust, or
agent may be the partnership, a nominee holding an interest
grantor trust. A nonwithholding foreign partnership is any
on behalf of a foreign person, or both. See Regulations
foreign partnership other than a withholding foreign
sections 1.1446-1 through 1.1446-6.
partnership. A nonwithholding foreign simple trust is any
foreign simple trust that is not a withholding foreign trust. A
Withholding foreign partnership (WP) or withholding
nonwithholding foreign grantor trust is any foreign grantor
foreign trust (WT). A WP or WT is a foreign partnership or
trust that is not a withholding foreign trust.
a foreign simple or grantor trust that has entered into a
withholding agreement with the IRS in which it agrees to
Participating FFI. A participating FFI is an FFI that has
assume primary withholding responsibility for purposes of
agreed to comply with the terms of an FFI agreement with
chapter 4 and under sections 1441 and 1442 for all payments
respect to all branches of the FFI, other than a branch that is
that are made to its partners, beneficiaries, or owners, except
a reporting Model 1 FFI or a U.S. branch. The term
as otherwise provided in the withholding agreement. A WP
participating FFI also includes a reporting Model 2 FFI and a
also includes a foreign reverse hybrid entity that has entered
QI branch of a U.S. financial institution, unless such branch is
into a withholding agreement.
a reporting Model 1 FFI.
Withholding statement. A withholding statement provides
Payee. A payee is generally a person to whom a payment is
an allocation (by income type) to each payee (or withholding
made, regardless of whether such person is the beneficial
rate pool, if applicable, or other pool of payees to the extent
owner. For a payment made to a financial account, the payee
permitted under the chapter 3 or 4 regulations) of each
is generally the holder of the financial account. However,
payment an intermediary or flow-through entity receives. The
under certain circumstances a person who receives a
withholding statement forms an integral part of the
payment will not be considered the payee. For purposes of
withholding certificate, and the penalties of perjury statement
chapter 3, see Regulations section 1.1441-1(b)(2) and for
provided on the withholding certificate shall apply to the
chapter 4, see Regulations section 1.1471-3(a)(3).
withholding statement. The withholding statement may be
Reportable amount. Solely for purposes of the statements
provided in any manner upon which the intermediary or the
required to be attached to Form W-8IMY, a reportable
flow-through entity and the withholding agent mutually agree,
amount is an amount subject to withholding under chapter 3,
including electronically if certain safeguards concerning
U.S. source deposit interest (including original issue
electronic transmission are met. A withholding statement also
discount), and U.S. source interest or original issue discount
provides information required for purposes of chapter 4 if the
on the redemption of short-term obligations. It does not
intermediary or flow-through entity is receiving a withholdable
include payments on deposits with banks and other financial
payment, in which case the entity must provide an FFI
institutions that remain on deposit for 2 weeks or less or
withholding statement, chapter 4 withholding statement, or
amounts received from the sale or exchange (other than a
-6-
Instructions for Form W-8IMY (Rev. 6-2017)

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