Over the weekend, the IRS released the Final Form W-8BEN-E “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)”. Instructions have not yet been released. This new form incorporates the FATCA classifications that will be used by Irish entities to demonstrate to US withholding agents from which they receive US source income that they are tax resident in a Model 1 IGA country and their FATCA status.
The key features of the new Form W-8BEN-E include:
- Inclusion of the Global Intermediary Identification Number (“GIIN”);
- 31 FATCA status classifications;
- Various FATCA self-certifications (depending on FATCA status); and
- A request for details of Substantial US owners where an entity is a Passive NFFE.
While an entity in a Model 1 IGA country, such as Ireland, should only be subject to FATCA withholding tax in limited circumstances, Irish entities should be prepared to provide a completed Form W-8BEN-E to US withholding agents if requested, to prevent the application of the 30% FATCA withholding tax on US source income with effect from 1 July 2014.
The new Form W-8BEN “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)” issued on 3 March 2014 will replace the former Form W-8BEN “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding” and is to be used by individuals going forward (prior to these FATCA updates, a single Form W-8BEN could have been used by both individuals and entities).
If you have any questions or would like assistance completing the new Form W-8BEN-E, please contact Kevin Cohen, Rachel Hewitt or another member of our KPMG FATCA team.