A Canadian not-for-profit entity would generally be classified as one of the following Expected NFFEs under FATCA:
- A "Section 501(c) Entity"
- A Canadian non-profit organization
- An Active NFFE.
If it qualifies as an Excepted NFFE or an EBO, a not-for-profit entity may avoid FATCA disclosure obligations by providing payors of US-source withholdable payments with a certification of its status as such.
Not-for-profit entities should be prepared to certify their classification on updated documentation (i.e., Form W-8BEN-E) when requested by a US withholding agent. They should also be prepared to provide a reporting CFI with documentation and/or other information, as requested, so that the reporting CFI with whom it transacts business can satisfy its due diligence and reporting requirements.
KPMG in Canada’s multidisciplinary team of tax and advisory professionals can help your multinational Canadian company meet its FATCA requirements. We provide FATCA advice to a wide range of financial services and general business organizations and can assist you in determining the FATCA categories for entities in your organization. To discuss any aspect of FATCA, please contact your KPMG adviser.