Instructions For Form W-8exp (Page 5 of 9) in pdf

of International Settlements is treated as though it were a

treated as having in effect a Model 1 or Model 2 IGA, see

foreign central bank of issue.

“List of Jurisdictions” available at

A foreign central bank of issue must provide Form

A Model 1 IGA means an agreement between the

W-8EXP to establish eligibility for exemption from

United States or the Treasury Department and a foreign

withholding for payments exempt from tax under either

government or one or more agencies to implement

section 892 or section 895.

FATCA through reporting by FFIs to such foreign

government or agency thereof, followed by automatic

Foreign financial institution (FFI). A foreign financial

exchange of the reported information with the IRS. An FFI

institution (FFI) generally means a foreign entity that is a

in a Model 1 IGA jurisdiction that performs account

financial institution.

reporting to the jurisdiction’s government is referred to as

Foreign person. A foreign person includes a

a reporting Model 1 FFI.

nonresident alien individual, foreign corporation, foreign

A Model 2 IGA means an agreement or arrangement

partnership, foreign trust, foreign estate, foreign

between the U.S. or the Treasury Department and a

government, international organization, foreign central

foreign government or one or more agencies to implement

bank of issue, foreign tax-exempt organization, foreign

FATCA through reporting by FFIs directly to the IRS in

private foundation, or government of a U.S. possession,

accordance with the requirements of an FFI agreement,

and any other person that is not a U.S. person. It also

supplemented by the exchange of information between

includes a foreign branch or office of a U.S. financial

such foreign government or agency thereof and the IRS.

institution or U.S. clearing organization if the foreign

An FFI in a Model 2 IGA jurisdiction that has entered into

branch is a qualified intermediary. Generally, a payment to

an FFI agreement is a participating FFI, but may be

a U.S. branch of a foreign person is a payment to a foreign

referred to as a reporting Model 2 FFI.

person.

International organization. For purposes of chapter 3,

Foreign government. For chapter 3 purposes, a foreign

an international organization is any public international

government includes only the integral parts or controlled

organization entitled to enjoy privileges, exemptions, and

entities of a foreign sovereign as defined in Temporary

immunities as an international organization under the

Regulations section 1.892-2T. Similar definitions apply for

International Organizations Immunities Act (22 U.S.C.

chapter 4 purposes under Regulations section

288-288(f)). In general, to qualify as an international

1.1471-6(b).

organization, the United States must participate in the

An integral part of a foreign sovereign, in general, is

organization pursuant to a treaty or under the authority of

any person, body of persons, organization, agency,

an Act of Congress authorizing such participation.

bureau, fund, instrumentality, or other body, however

Any organization that qualifies as an international

designated, that constitutes a governing authority of a

organization under chapter 3 also qualifies as an

foreign country. The net earnings of the governing

international organization under chapter 4.

authority must be credited to its own account or to other

For purposes of chapter 4, an international organization

accounts of the foreign sovereign, with no portion

also includes any intergovernmental or supranational

benefiting any private person.

organization that is comprised primarily of foreign

A controlled entity of a foreign sovereign is an entity

governments, that is recognized as an intergovernmental

that is separate in form from the foreign sovereign or

or supranational organization under a foreign law similar

otherwise constitutes a separate juridical entity only if:

to 22 U.S.C. 288-288(f) or that has in effect a

It is wholly owned and controlled by the foreign

headquarters agreement with a foreign government, and

sovereign directly or indirectly through one or more

whose income does not inure to the benefit of private

controlled entities.

persons.

It is organized under the laws of the foreign sovereign

Participating FFI. A participating FFI is an FFI (including

by which it is owned.

a reporting Model 2 FFI ) that has agreed to comply with

Its net earnings are credited to its own account or to

the terms of an FFI agreement. The term participating FFI

other accounts of the foreign sovereign, with no portion of

also includes a QI branch of a U.S. financial institution,

its income benefiting any private person.

unless such branch is a reporting Model 1 FFI.

Its assets vest in the foreign sovereign upon

dissolution.

Specified U.S. person. A specified U.S. person is any

U.S. person other than a person identified in Regulations

A controlled entity of a foreign sovereign also includes

section 1.1473-1(c).

a pension trust defined in Temporary Regulations section

1.892-2T(c) and may include a foreign central bank of

Substantial U.S. owner. A substantial U.S. owner (as

issue to the extent that it is wholly owned by a foreign

described in Regulations section 1.1473-1(b)) means any

sovereign.

specified U.S. person that:

A foreign government must provide Form W-8EXP to

Owns, directly or indirectly, more than 10 percent (by

establish eligibility for exemption from withholding for

vote or value) of the stock of any foreign corporation;

payments exempt from tax under section 892 or for

Owns, directly or indirectly, more than 10 percent of the

purposes of establishing its status as an exempt beneficial

profits interests or capital interests in a foreign

owner.

partnership;

Is treated as an owner of any portion of a foreign trust

Intergovernmental agreement (IGA). An IGA means a

under sections 671 through 679; or

Model 1 IGA or a Model 2 IGA. For a list of jurisdictions

-5-

Instructions for Form W-8EXP (Rev.4-2014)

Instructions For Form W-8exp Page 5

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