IRS Releases Draft U.S. Forms W-8

New U.S. Withholding Tax Documentation Forms are Forthcoming

Early in September 2021, the U.S. Internal Revenue Service released draft Forms W-8BEN-E, W-8BEN, W-8IMY, W-8ECI, and the related instructions. The Service has not yet released the draft Form W-8EXP. It is expected that the Form W-8EXP will be changed to encompass disclosures for Qualified Foreign Pension Funds.

Form W-8BEN-E

The Form W-8BEN-E is drafted to include changes for additional disclosures regarding Section 1446(f), a disclosure whether the governmental entity is considered an "integral part" of the foreign government, and foreign taxpayer identification number disclosures. The instructions were also updated regarding certain U.S. treaty claims and life insurance contracts. The draft instructions also specify when an electronic signature is acceptable on the form. Here are the links to the draft Form W-8BEN-E and the draft Form W-8BEN-E Instructions.

Form W-8BEN

The Form W-8BEN changes included changes to the signature certification checkbox and foreign taxpayer identification number disclosures. Here are the links to the draft Form W-8BEN and the draft Form W-8BEN Instructions.

Form W-8IMY

The Form W-8IMY is drafted to include changes for Qualified and Nonqualifed Intermediaries, Territory Financial Institutions, certain U.S. branches, and nonwithholding foreign partnerships. The form now includes a line to disclose the entity's foreign taxpayer identification number. Here are the links to the draft Form W-8IMY and the draft Form W-8IMY Instructions.

Form W-8ECI

The Form W-8ECI is updated to include a disclosure whether the governmental entity is considered an "integral part" of the foreign government, changes to the foreign taxpayer identification number disclosure, signature checkbox, and a Section 1446(f) disclosure for dealers. Here are the links to the draft Form W-8ECI and the draft Form W-8ECI Instructions.

Do you have questions regarding U.S. withholding tax documentation preparation, or U.S. FATCA? Please contact International Capital Associates, LLC if you need any assistance in understanding these disclosures or help with understanding U.S. withholding taxes.

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U.S.-Russia Tax Treaty Suspension

June 18, 2024

The U.S. Department of the Treasury announced on June 17, 2024, that the United States has formally notified the Russian Federation about the suspension of certain articles and provisions of the Convention between the United States of America and the Russian Federation for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed at Washington, June 17, 1992. This suspension will take effect on August 16, 2024, and will continue until otherwise decided by the two governments. This decision is in response to the Russian Federation's notification on August 8, 2023, expressing its desire to suspend specific articles and provisions of the Convention and the Protocol. The announcement can be seen at United States’ Notification of Suspension, By Mutual Agreement, of the 1992 Tax Convention with Russia | U.S. Department of the Treasury . Taxpayers who rely on the U.S.-Russia income tax treaty should plan for this suspension. Please contact International Capital Associates, LLC if you need help planning for the treaty suspension or if you need other U.S. tax services .

U.S. Internal Revenue Service Releases Updated Form W-8EXP With Updates for Qualified Foreign Pension Funds

December 11, 2023

In November 2023, the U.S. Internal Revenue Service released an updated Form W-8EXP. The Form W-8EXP is a U.S. withholding tax certificate for foreign governments or other foreign organizations. Confusingly, the words “qualified foreign pension fund” do not appear on the Form W-8EXP. However, the updates to the Form W-8EXP are intended to allow a non-U.S. pension fund (or qualifying entity) to certify its Qualified Foreign Pension Fund status. A non-U.S. pension fund may certify that it is a “Withholding Qualified Holder Under Section 1445” provided it meets the requirements of Section 897(l) and Treas. Reg. 1.897(l)-1 as a Qualified Foreign Pension Fund. A “Qualified Holder” includes certain wholly-owned entities that meet the requirements of Treas. Reg. 1.897(l)-1(d)(2) or (3). A “Withholding Qualified Holder” also consists of a non-U.S. partnership wholly owned by Qualified Holders. Unfortunately, Form W-8EXP still does not contain sections to allow the taxpayer to claim the benefits of a U.S. income tax treaty. Non-U.S. pension funds and governments will still need to complete Form W-8BEN-E to claim U.S. income tax treaty benefits with a U.S. withholding agent, such as reduced dividend and interest withholding rates. The release of the updated Form W-8EXP does not invalidate any prior Qualified Foreign Pension Funds certifications. In the future, U.S. withholding agents may request a valid Form W-8EXP instead of other Qualified Foreign Pension Fund certifications. A Withholding Qualified Holder should ensure that the Form W-8EXP is complete and valid to make a Qualified Foreign Pension Fund certification using the Form W-8EXP. Please contact International Capital Associates, LLC if you need help determining if the entity is considered a Withholding Qualified Holder, if you need assistance completing Form W-8EXP , or if you need other U.S. tax services .