Publication 515 2024 Withholding of Tax on Nonresident Aliens and Foreign Entities Internal Revenue

Publication 515 - Introductory Material

For the latest information related to Pub 515, including legislation enacted after issuance, please visit IRS. gov/pub515.

What's New

Electronic Filing of Returns The Taxpayer First Act of 2019 authorized the Treasury Department and the IRS to issue regulations lowering the e-file threshold to 250 returns. T. D. 9972, published on February 23, 2023, lowered the e-file threshold to 10 (calculated by aggregating all information returns), effective for information returns required to be filed on January 1, 2024. For electronic filing options, please visit IRS. gov/inforeturn. These final regulations also include requirements for the Form e-file 1042 withholding factor, effective for Form 1042 returns required to be filed on or after January 1, 2024. Also see Pub. 1187, "Form 1042-S, Electronic Filing and Electronic Information Filing (FIRE) Requirements for U. S.-Source Income Subject to Withholding."

Termination of the 1979 Tax Treaty with Hungary On July 15, 2022, the U. S. Department of the Treasury announced that Hungary had notified the United States that it would terminate its tax treaty with Hungary on July 8, 2022. Under the provisions of the termination treaty, the termination of the treaty will take effect on January 8, 2023. With respect to withholding tax, the treaty will cease to have effect on January 1, 2024. For other taxes, the treaty will no longer be in force for tax periods beginning on or after January 1, 2024.

Reminders

Simplifying the Central Withholding Application (CWA) Procedures

We have temporarily waived the income requirement for the form to be used when filing a CWA. Form 13930-A is no longer available. While the waiver is in effect, individuals with incomes less than $10, 000 may file for a CWA using Form 13930, Instructions on How to File for a Central Withholding Agreement, PDF. For more information on how to file for a CWA, see Form 13930. For more information, see IRS. gov/Intividuals/International-TaxPayers/Central-Withholding-Agreements.

Reporting Interest Paid to Certain Nonresident Aliens. Deposit interest of $10 or more paid to certain nonresident aliens must be reported on Form 1042-S. For more information, see "Deposit Interest Paid to Certain Nonresident Aliens."

Electronic Deposits. All taxes paid on Form 1042-S (including taxes withheld under chapters 3 or 4) must be deposited electronically.

Application for extension of Form 8809. Applications for extension of the FORM 1042-S by Form 8809 must be submitted electronically. The extension of IRS form 1042-s will be described later.

Withholding and reports based on Article 1446 (a) and (F) starting in 2023. The T. D. 9926 (85 FR 76910) (corrected with 86 FR 13191), which was announced on November 30, 2020, has withholding and reporting under the section 1446 (f) regarding the transfer of a specific partnership. Includes the final rule (section 1446 (f)) related to it. Article 1446 (F) withholding is generally applied to the transfer after January 1, 2018, but the specific clause under Article 1446 (F) is applied to the transfer after January 1, 2023. Masu:
Obligation to transfer interest to PTP based on Article 1446 (F) (1).
There is a certain change to the withholding requirements based on Article 1 1446-4 for distribution (PTP distribution) performed by PTP, and this is because the qualified intermediarian (Qi) and the US branch are the withholding agent of the distribution. The threshold is included. and

Article 1446 (1) A withholding of a partnership based on Article 1446 (F) (4) regarding the distribution to no n-PTP controllers who have not been properly withheld.

For more information about the dates of these provisions, see the Notice 2021-51, 2021-36 I. R. B. 361 available in IRS. GOV/IRB/IRB/2021-36_IRB#Not-2021-51. Section 1446 (F) Additional guidance on specific issues regarding rules, refer to IRS. GOV/IRB/2023-2_IRB#Not-2021-51 Available in 2023-8, 2023-2 I. R. B. 344.

Introduction

The missing child's photo tax Agency is affiliated with the National Center for Missing & Amp; Exploited Children. In this book, photos of the missing children chosen by the center are posted on a blank page. If you look at the photos and have a familiar child, you can return these children home by calling 1-800-THE-LOST (1-800-843-5678).

This book is for no n-residents, foreign corporations, foreign partnerships, foreign trusts, foreign religions, foreign governments, and international organizations, for withholding obligations to pay income. Specifically, we explain the types of withholding obligations (withholding agent), the types of income subject to withholding, and the obligation to report information and tax return of withholding agent. In addition to the rules generally applied to the payment of US income to foreigners, withholding in the United States by partnerships, with withholding in the United States and business It also includes items related to withholding to related income.

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Useful Items

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Please refer to this:

Publication
15 (Circular E), Employer's Tax Guide (Employer's tax guide)
15-B Series Tax Guide for Limit Benefits
15-T Federal Income Tax withholding method
51 (Circular A), RURAL EMPLOYER'S TAX Guide (Local Employment Tax Guide)
505 withholding tax and estimated tax
519 US tax guide for foreigners
901 US tax treaty
1179 Form 1096, 1098, 1099, 5498, general rules and specifications for substitutes for substitutes for specific information filing
1187 Rules for electronic submission of US foreign income (FORM 1042-s), which is subject to withholding
5124 FATCA XML user guide

Format (and instructions)

SS-4 Employer number application form
W-2 wage and tax statements
Employee withholding certificate W-4
W-4P withholding certificate for regular pensions or pension payments
W-7 IRS Personal Tax Payer Number Application Form
W-8BEN Foreign beneficiary certificate for US withholding / tax payment report (for personal)
W-8ben-E Incelignation Certificate for Prominends and Tax Declaration (Corporation)
W-8ECI Foreign certificate claiming that transactions or businesses and income in the United States are substantially related
W-8EXP Certificate from foreign governments or foreign organizations for withholding and tax returns in the United States
W-8imy foreign intermediaries, foreign fluid businesses, or specific US branch certificates for withholding and reporting
W-8 Inst. Form W-8BEN, W-8Ben-E, W-8ECI, W-8EXP, W-8imy applicants
W-9 taxpayer number application and certificate
W-9 Inst. Form W-9 applicant manual
941 Employer Federal Federal Tax Payment Form
945 withholding Federal income tax year declaration
1042 Annual withholding tax declaration of US foreign income
1042-S Interproprib-US income subject to withholding tax
1042-T 1042-S form Annual summary and sending book
13930 Instructions on how to apply for the Central Source Collection Agreement
13930-A Simple application form for withholding intensive agreement
8233 No n-resident's independence (and specific dependent) exemption of rewards for personal services
8288 US withholding statement for specific disposal by foreigners
8288-With withholding tax return to specific disposal by foreigners
8288-B Application for withholding tax on the disposal of US ownership by foreigners
8288-C A withholding report based on the section 1446 (F) (4) on the disposal of corporate owners by foreigners
8966 FATCA Report

For information on how to obtain publications and formats, see "How to Help for Tax" at the end of this article.

Publication 515 - Main Contents

Withholding of Tax

In most cases, foreigners are subject to US tax on US income. Most of the US withholding income received by foreigners will receive 30 % of US taxes. If there is a tax treaty between foreign residents and the United States, a reduced tax rate, including exemption, may be applied. This tax is usually withholding from the payment to foreigners (Chapter 3 Spring Spring).

In this book, the term "Chapter 3 General Spring Collection" is explained in order to point to the withholding tax based on Article 1441, Article 1442, and Article 1443. In most cases, the withholding system in Chapter 3 indicates the withholding system that requires withholding to pay for withholding in the United States. Payments to no n-resident foreigners, foreign corporations, and governments, including the government, may be subject to the 3rd Chapter Spring.

Withholding tax may be required to be paid within the scope of Chapter 4. "Chapter 4" refers to Chapter 4 of the subtitle A (Article 1471 to Article 1474). The duty of withholding in Chapter 4 will be described later.

If the withholding of Chapter 3 is referred to in this book (and if there are no other provisions), see Article 1445 (see "US Furial Property" described later) or Article 1446 (described later. Does not include withholding in the "US stak e-related property"). See the withholding tax on the valid taxable income (ECTI) and Article 1446 (F) of the partnership). .

The withholding agent (defined below) is responsible for withholding the payment to foreigners. However, withholding agents who can reliably associate documents and payments from Americans (described later) do not need to withhold. In addition, withholding agent, if it is possible to ensure that documents and payments from a foreign beneficiary can be associated, the reduced withholding rate (including withholding tax exemption) can be applied.

Chapter 3 The target amount of the source collection is also the amount of payment of the payment, and if Chapter 4 is applied to the payment, it is not necessary to have withholding in Chapter 3. reference. Chapter 4 The requirements for the source of the source, will be described later. For information on how to obtain publications and formats, see "How to Help for Tax" at the end of this article.

Withholding Agent

Chapter 3 Withholding Requirements

Chapter 3 The target amount of the source collection is also the amount of payment of the payment, and if Chapter 4 is applied to the payment, it is not necessary to have withholding in Chapter 3. reference. Chapter 4 The requirements for the source of the source, will be described later. For information on how to obtain publications and formats, see "How to Help for Tax" at the end of this article.

Chapter 4 Withholding Requirements

Chapter 3 If you are an American or foreigner who manages, receives, stored, disposed, or pays the amount to be collected, is a withholding obligation to act in any position. Withholding agent, individuals, corporations, partnerships, trusts, associations, approved (based on Article 1446), foreign intermediaries, foreign partnerships, and US branches of specific foreign banks and insurance companies. It may be another group to include. You can be a withholding obligation to pay if you have no withholding tax or if others have withholding the amount you need.

Many individuals can receive deductions in one payment, but only one time withholding is required. In most cases, an American who pays the amount to be collected in Chapter 3 is a withholding obligation. However, other individuals may require withholding. For example, if there is a reason to know or know that the full amount of the source of the origin of the 3rd Chapter 3 was not done by the payment of a fros t-through business or no n-qualified intermediary (NQI). It is necessary to make appropriate withholding because it corresponds to the definition of withholding obligations. Furthermore, based on the conditions of the withholding agreement described later, a qualified intermediary (Qi), which provides withholding of foreign partnerships and withholding of foreign trust funds, must be withholding.

Tax payment obligation

As a withholding obligation, you are personally responsible for tax that requires withholding. This responsibility is irrelevant to the tax obligation of the foreigner. If you neglect withholding and do not fulfill your US taxpayers, both you and the foreign recipients will have tax, interest, and applied penalties.

Applicable taxes are collected only once. If a foreigner fulfills the tax obligation in the United States, you will not be obliged to pay tax, but you will be responsible for interest and penalties for not withholding.

Forms 1042 and 1042-S Reporting Obligations

Decision of withholding amount

Withholding and Reporting Obligations (Other Than Forms 1042 and 1042-S Reporting for Chapter 3 or 4 purposes)

The total amount subject to the withholding of Chapter 3 must be withholding. With withholding, the total amount cannot be reduced. Chapter 3 If you are an American or foreigner who manages, receives, deposits, disposal, or pays the amount to be collected in the source, is an obligation to withhold even in any position. I'm a person. Withholding agent, individuals, corporations, partnerships, trusts, associations, approved (based on Article 1446), foreign intermediaries, foreign partnerships, and US branches of specific foreign banks and insurance companies. It may be another group to include. You can be a withholding obligation to pay if you have no withholding tax or if others have withholding the amount you need.

Many individuals can receive deductions in one payment, but only one time withholding is required. In most cases, an American who pays the amount to be collected in Chapter 3 is a withholding obligator. However, other individuals may require withholding. For example, if there is a reason to know or know that the full amount of the source of the origin of the 3rd Chapter 3 was not done by the payment of a fros t-through business or no n-qualified intermediary (NQI). It is necessary to make appropriate withholding because it corresponds to the definition of withholding obligations. Furthermore, based on the conditions of the withholding agreement described later, a qualified intermediary (Qi), which provides withholding of foreign partnerships and withholding of foreign trust funds, must be withholding.

Tax payment obligation
As a withholding obligation, you are personally responsible for tax that requires withholding. This responsibility is irrelevant to the tax obligation of the foreigner. If you neglect withholding and do not fulfill your US taxpayers, both you and the foreign recipients will have tax, interest, and applied penalties.
Applicable taxes are collected only once. If a foreigner fulfills the tax obligation in the United States, you will not be obliged to pay tax, but you will be responsible for interest and penalties for not withholding.
Decision of withholding amount

The total amount subject to the withholding of Chapter 3 must be withholding. With withholding, the total amount cannot be reduced. Chapter 3 If you are an American or foreigner who manages, receives, stored, disposed, or pays the amount to be collected, is a withholding obligation to act in any position. Withholding agent, individuals, corporations, partnerships, trusts, associations, approved (based on Article 1446), foreign intermediaries, foreign partnerships, and US branches of specific foreign banks and insurance companies. It may be another group to include. You can be a withholding obligation to pay if you have no withholding tax or if others have withholding the amount you need.

Many individuals can receive deductions in one payment, but only one time withholding is required. In most cases, an American who pays the amount to be collected in Chapter 3 is a withholding obligator. However, other individuals may require withholding. For example, if there is a reason to know or know that the full amount of the source of the origin of the 3rd Chapter 3 was not done by the payment of a fros t-through business or no n-qualified intermediary (NQI). It is necessary to make appropriate withholding because it corresponds to the definition of withholding obligations. Furthermore, based on the conditions of the withholding agreement described later, a qualified intermediary (Qi), which provides withholding of foreign partnerships and withholding of foreign trust funds, must be withholding.

Tax payment obligation

Decision of withholding amount

The total amount subject to the withholding of Chapter 3 must be withholding. With withholding, the total amount cannot be reduced.

If the source of income and taxable targets depend on the facts that are not known at the time of payment, it is enough to ensure at least 30 % of the amount determined to be withholding. Must beyond. However, in any case, 30%or more of the total payment must not be withholding. You can deposit 30%of the payment amount from the day when the US withholding income or taxable amount is determined or the Escr o-deposit to the earliest one year earlier.

Time for withholding

Withholding is required to pay the amount of withholding tax. If the individual achieves income, regardless of whether or not cash or other property is actually reinforced, the payment will be made to the individual. Payment is considered to be for individuals when paid for the personal interests. For example, the payment paid to the personal creditor to satisfy the debt of the individual creditor is deemed to have been paid to the individual. It is also deemed to have been paid to the individual if it is paid to a personal agent.

The US partnership must be withholding in the case of a withholding amount, including withholding. However, if the distribution income of a foreign partner is not actually distributed, the US partnership will be provided or mailed by the schedule K-1 (form 1065), or on the deadline for providing this schedule. You must withhold the distribution income of foreign partners. Notification If the distribution income of foreigners includes substantial income (ECI), see the ECTI partnership section below.

The US Trust must withhold the amount of the distributed trust's pure income in a withholding target amount. If the US Trust needs to distribute the amount to be withholding, but do not actually distribute it, it is necessary to report the income in form 1042-s. You have to withhold the equity of the beneficiary. If the source of income or taxable amount is affected by the fact that it is not known at the time of payment, it will surely withhold at least 30 % of the amount determined to be withholding. You have to withhold a sufficient amount. However, in any case, 30%or more of the total payment must not be withholding. You can deposit 30%of the payment amount from the day when the US withholding income or taxable amount is determined or the Escr o-deposit to the earliest one year earlier.

Time for withholding

Persons Subject to Chapter 3 or Chapter 4 Withholding

The US Trust must withhold the amount of the distributed trust's pure income in a withholding target amount. If the US Trust needs to distribute the amount to be withholding, but do not actually distribute it, it is necessary to report the income in form 1042-s. You have to withhold the equity of the beneficiary. If the source of income and taxable targets depend on the facts that are not known at the time of payment, it is enough to ensure at least 30 % of the amount determined to be withholding. Must beyond. However, in any case, 30%or more of the total payment must not be withholding. You can deposit 30%of the payment amount from the day when the US withholding income or taxable amount is determined or the Escr o-deposit to the earliest one year earlier.

Time for withholding

Identifying the Payee

Whether you are an American or a foreigner, in any position, if you manage, receive, store, dispose of, or pay the withholding tax, you are a withholding agent in Chapter 4. 。 The rules for determining who is a withholding obligation is the same as the one described in the withholding of Chapter 3, and applies to Chapter 4. In Chapter 4, withholding obligations, as long as the participating foreign financial institution (FFI) (including reference model 2FFI) or regulation FFI pays with withholding tax, the FFI is included.

Based on Chapter 4, the withholding agent who pays withholding to the recipient of the FFI may be treated as a withholding agent as FFI participants, deemed FF I-compliant, or exempted benefits. Unless you can, you must withhold 30%for the payment. The withholding obligator is a foreign entity other than FFI (that is, a no n-financial foreign entity or NFFE), and does not identify US beneficiaries (or not prove that there are no US beneficiaries). As for the payment that can be withholding, 30%must be withholding as long as the payment is exempted by the withholding with Article 1472. Participation FFI is within the range of the FFI Agreement, including the payment to the account holder who is obliged to treat the FFI as a fixed account holder, which is a withholding officer based on Chapter 4. It is obliged to have withholding payments for withholding. The report model 1FFI is required to be withholding in Chapter 4 within the range required in the applicable government agreement (IGA). The compliant registration FFI (other than the report model 1 FFI) requires withholding with Chapter 4 within the range of requirements for registered FF I-based registration FF I-based status.

Generally, withholding payments, the US source payments are fixed or fixed (FDAP) income (FDAP). A specific withholding payment exemption is applied instead of the withholding tax exemption or tax exemption prescribed in Chapter 3. reference. For the payment of US FDAP income excluded from the definition of withholding tax, see "Income to the withholding tax" below. Whether you are an American or a foreigner, if you are a person who manages, receives, deposits, disposal, or pays the withholding payments, is withholding in Chapter 4 I'm an agent. The rules for determining who is a withholding obligation is the same as the one described in the withholding of Chapter 3, and applies to Chapter 4. In Chapter 4, withholding obligations, as long as the participating foreign financial institution (FFI) (including reference model 2FFI) or regulation FFI pays with withholding tax, the FFI is included.

Generally, withholding payments, the US source payments are fixed or fixed (FDAP) income (FDAP). A specific withholding payment exemption is applied instead of the withholding tax exemption or tax exemption prescribed in Chapter 3. reference. For the payment of US FDAP income excluded from the definition of withholding tax, see "Income to the withholding tax" below. Whether you are an American or a foreigner, in any position, if you manage, receive, store, dispose of, or pay the withholding tax, you are a withholding agent in Chapter 4. 。 The rules for determining who is a withholding obligation is the same as the one described in the withholding of Chapter 3, and applies to Chapter 4. In Chapter 4, withholding obligations, as long as the participating foreign financial institution (FFI) (including reference model 2FFI) or regulation FFI pays with withholding tax, the FFI is included.

When the withholding agent pays both the withholding in Chapter 4 and the withholding of Chapter 3, the withholding agent must apply the withholding provisions in Chapter 4. It is not necessary to withhold the withholding in Chapter 4 in Chapter 3.

The same provisions described in the requirements of the 3rd Chapter 3 of the 3rd Chapter 3 are applied to Chapter 4 for the time of tax payment obligation to withholding agent, decision of withholding tax, and withholding.

Flow-Through Entities

In addition, a final tax return is reported in the format 1042-s, and the payment is filed in the format 1042 to report the withholding payment in which the withholding of Chapter 4 has been applied (or should be applied). You need to. For the purpose of Chapter 3, for those who do not require withholding and do not pay the payment as a business, the exception of the report may be applied. Similar exceptions for reporting for the purpose of Chapter 4 are applied to those who are withholding of payment outside of the person's transaction or business (including agent related to the creation or receipt of such payments). Sometimes.

Form 1099 report and backup withholding.

You may also be responsible for reporting the payment to the American in the regular form 1099. Payment to the Americans to report on form 1099 requires 24%withholding (backup withholding tax) in the following cases:

Americans do not provide taxpayers (TIN) in a prescribed way.
IRS notified that TIN provided by the recipient is wrong.

The notified recipient was under filing.

The recipient's authentication was incomplete.

In most cases, TIN must be provided by Form W-9 by the tax-exempt US recipient (the US-American who is subject to form 1099 reports).

The payer submitted a final tax return with form 945 to report the backup withholding. When the withholding agent pays both the withholding of Chapter 4 and the withholding of Chapter 3, the withholding agent must apply the withholding provisions of Chapter 4. Nevertheless, it is not necessary to withhold the withholding in Chapter 4 in Chapter 3.
The same provisions described in the requirements of the 3rd Chapter 3 of the 3rd Chapter 3 are applied to Chapter 4 for the time of tax payment obligation to withholding agent, decision of withholding tax, and withholding.

Form 1099 report and backup withholding.

Americans do not provide taxpayers (TIN) in a prescribed way.

IRS notified that TIN provided by the recipient is wrong.

The notified recipient was under filing.

The recipient's authentication was incomplete.

In most cases, TIN must be provided by Form W-9 by the tax-exempt US recipient (the US-American who is subject to form 1099 reports).

The payer submitted a final tax return with form 945 to report the backup withholding. When the withholding agent pays both the withholding in Chapter 4 and the withholding of Chapter 3, the withholding agent must apply the withholding provisions in Chapter 4. It is not necessary to withhold the withholding in Chapter 4 in Chapter 3.

Form 1099 report and backup withholding.

Americans do not provide taxpayers (TIN) in a prescribed way.

IRS notified that TIN provided by the recipient is wrong.

The notified recipient was under filing.

The recipient's authentication was incomplete.
In most cases, TIN must be provided by Form W-9 by the tax-exempt US recipient (the US-American who is subject to form 1099 reports).

The payer submitted a final tax return with form 945 to report the backup withholding.

Even if you are not paying directly to the Americans, you may need to submit form 1099 and withhold backup if necessary. For example, for Americans to report 1099, we must report the income paid to foreign intermediaries and collected organizations. However, if you pay the FFI or registration FFI based on the withholding statement that assigns the payment to the US Paymenters to the 4th Chapter 4th Source Collection Rate, you may not need to report the format 1099. 。 For more information, see "Payment Decision" described later. See also "Special rules for reporting payments made through foreign brokers and foreign flow businesses in form 1099" in "S. General Manual for Specific Information Declaration" in Form 1099.

Foreign businesses that submit valid W-8 forms (or evidence alternative to W-8 forms) are exempted from backup withholding and form 1099. .

FORM 8966 Report.

For the purpose of Chapter 4, if the owner agrees to be treated as a documented FFI, or a passive NFFE, it is necessary to report the FATCA Report Form 8966. There may be. See "Necessary Declaration" described below.

Wages paid to employees.

If you are a no n-resident foreign employer, you must usually have withholding at a gradual tax rate. See the "Personal Director Paid" described later.

Contrary partnership income.

The withholding officer, which is a partnership (whether or not the United States or foreign countries), is obliged to withhold income that can be understood as a foreign partner, and has a substantial income related to businesses in the United States. However, in the case of listed partnerships, this withholding, which is applied to the distribution (PTP distribution) from the partnership, may be responsible for either partnership or nominay. For more information, see the withholding of partnerships related to the ECTI described later.

Foreign businesses that submit valid W-8 forms (or evidence alternative to W-8 forms) are exempted from backup withholding and form 1099. .

Withholding obligations, if a foreign partner transfers a partnership (domestic or foreign) that is engaged in US business or tasks, he is obliged to withhold the equity. See Article 1446 (F) "Withholding tax" described in Article 1446 (F) described in the following for details, such as the obligation to collect the PTP.

USRPI.

A withholding agent may also be liable to withhold when a foreign person transfers USRPI to the agent, or when a corporation, partnership, trust, or estate distributes USRPI to a shareholder, partner, or beneficiary who is a foreign person. See U. S. Real Property Interests, below.

Chapter 3 withholding applies only if the payee is a foreign person. It does not apply to payments to U. S. persons.

Foreign Intermediaries

Generally, you determine the payee's status under chapter 4 based on the documentation the individual submits, whether the payee is a U. S. person or a foreign person, or if you make a withholding payment to a corporation (or if you are an FFI making a payment to an account holder). See Documentation, below. However, if you do not receive documentation or cannot reliably link all or part of the payment to a reliable document, you must apply the specific documentation rules, described below.

Chapter 4 withholding applies to source payments made to a paying entity that is an FFI, unless the withholding agent is able to treat the FFI as a participating FFI, is deemed to be subject to an FFI, or is treated as an exempt beneficial owner. Chapter 4 withholding also applies to source payments made to a passive NFFE that cannot identify (or cannot demonstrate that it has no significant U. S. owners). To determine whether withholding applies, you must apply the chapter 4 documentation requirements to determine the chapter 4 status of the payee. Generally, you must determine whether withholding applies by obtaining a W-8 form (or, under an applicable IGA, a similar agreed-upon form) associated with the payment, or other documentation of the payment made outside the U. S. for offshore obligations. For more information about these documentation requirements, see Regulation 1. 1471-3(d). Withholding under chapter 4 also applies to account holders of participating FFIs or registered deemed conforming FFIs that the FFI is required to treat as noncompliant account holders.

This section applies to both chapters 3 and 4 unless otherwise noted and unless a provision clearly applies to one or the other (for example, a reduced rate or exemption under an income tax treaty).

In most cases, the payee is the person to whom you make a payment, regardless of whether that person is the beneficial owner of the income. However, there are some cases where the payee is someone other than the person to whom you actually make the payment.

Foreign Agents of the United States

For purposes of chapter 3, if you make a payment to a U. S. person and you have actual knowledge that the U. S. person is accepting the payment as an agent for a foreign person, you must treat the payment as made to a foreign person. However, if the U. S. person is a financial institution, you may treat the financial institution as the payee, unless you have reason to believe that the financial institution will not comply with its withholding requirements under chapter 3.
For purposes of chapter 4, if you make a withholdable payment to a U. S. person and you have actual knowledge that the U. S. person is accepting the payment as an intermediary or agent for a foreign person, you must treat the foreign person as the payee. However, if you make a withholdable payment to a U. S. financial institution or a U. S. insurance broker (to the extent that withholding is on premium payments) that accepts the payment as an intermediary or agent, you may treat the financial institution or insurance broker as the beneficial owner, unless you have reason to know that the financial institution or insurance broker will not comply with its withholding requirements under chapter 4. See "Definitions" below for the definition of financial institution.

If the payment is not subject to chapter 3 withholding and is not a withholdable payment, you must treat the payment as a payment to a U. S. person, not as a payment to a foreign person. In that case, you must report the payment on Form 1099 and make backup withholding, if applicable.

Missing Entities

Generally, a non-corporation, single-owner entity can be disregarded for federal tax purposes as a separate entity from its owner (a disregarded entity). The payee of a payment to a disregarded entity is the owner of the entity.

Foreign businesses that submit valid W-8 forms (or evidence alternative to W-8 forms) are exempted from backup withholding and form 1099. .

If the owner is a U. S. person, chapter 3 withholding does not apply. However, you may need to report the payment on Form 1099 and make backup withholding, if applicable. You may presume that a foreign entity is not a risky entity unless you can reliably link the payment to documentation provided by the owner or you have actual knowledge or reason to know that the foreign entity is a risky entity.

Special Rules of Chapter 4

If you make a withholdable payment to the FFI in Chapter 4, you should be treated to the recipient who is a no n-participant FFI (Chapter 4 is applied), or (() You must judge whether you should be treated as a FFI who has a status of another chapter 4, such as FFI. If you make a withholdable payment to an ignored entry body treated as an FFI branch that cannot be complyed with the applied IGA requirements or Chapter 4, the payment is treated as a no n-participation FFI and the payment is paid. 30%must be withholding. For more information about payment to an unknown company, see the Form W-8ben-E description.

Chapter 3 Jury

Income paid to foreign entities (excluding the interest rules of partnerships related to US transactions or businesses and businesses in the United States and businesses in the United States), the owner or beneficiaries of the fros t-through business 。 This rule applies to Chapter 3 General Spring collection, Foam 1099, and backup withholding. Income considered to be substantially associated with the business activities of the US Floor Roux operator is treated as paid to the business.

The following is a floo r-through business.

Foreign partnership (excluding withholding of foreign partnerships).

Foreign simple trust or foreig n-grant trust (excluding withholding foreign trust).

The beneficiary of Chapter 3 is a violation entity or flo w-through entity under the US Tax Law, but if the beneficiary claims the beneficiary of the tax treaty, see: Transparent entity that claims the benefits of the tax treaty

Chapter 4 Judge

However, for the application of Chapter 4, foreign entities, which are fl o-through businesses, pay (excluding income related to the execution of US transactions or businesses) when the flo w-through business is as follows: Become a recipient about:

Participation FFI, compliant FFI or restricted distributor (Nonnie has a limited-ed's debt or equity, and as a distributor that meets the requirements listed in rules 1. 1471-5 (F) (4) When the FFI, which is considered to be the entity, receives a payment on behalf of the owner (in this case, the business agency is a no n-participation FFI, which is subject to the withholding of Chapter 4).
Dut y-free NFFE that does not act as an agent or intermediary in connection with payment.
If you pay with withholding tax to a flo w-through entity that does not fall under the above type, Chapter 4 of the flo w-through business partner, beneficiaries, or owners (if applicable). It must be treated as a recipient in Chapter 3 (as well as the recipient's decision) (considering the case where the partner, beneficiary, and owners are not the above types).

In most cases, if the beneficiary submits the W-8imy form (see the "Document Creation" described below) and claims to be a frost-through business in that form, the beneficiaries will be treated as a frost-through business. 。 It may also be necessary to treat it as a flow entity based on the estimated rules described later.

For the purpose of Chapter 3, the owner of the floo r-through business entity is the owner or the beneficiary of the owner or the beneficiary, whether the owner or the beneficiary is an American or a beneficiary. Alternatively, if the beneficiary is a foreigner, you must determine whether the withholding tax rate in Chapter 3 is applied. For Chapter 4, Chapter 4 of the owner or beneficiary (excluding the above exceptions), the payment amount related to each owner or beneficiary, and the 4th Chapter Fund Supreme Taxation rate are applied. You have to decide whether or not. These decisions should be made based on the documents and other information attached to the entity form W-8imy (listed in the withholding tax). If you do not have any information necessary to ensure that payment is to be associated with a specific recipient, you must apply the estimated rules. See the documentation and estimated provisions described below.

Note.

Foreign partnership withholding and withholding of foreign trusts are not entrepreneurs.

Tax exemption NFFE that does not act as an agent or intermediary in connection with the foreign partnership

Foreign partnerships refers to partnerships that are not organized by the US or Colombian special ward (including companies classified as partnerships) or foreign partnerships under the Income Tax Law. If the foreign partnership is not a withholding foreign partnership, the recipient of the income is a partner partner. However, partnerships are not treated as financially transparent in the tax treaty and meet all other requirements for claiming the tax treaty. If you request, the beneficiary will be partnership itself. If your partner is a foreign frog business or foreign intermediary, apply the beneficiary rules to your partner to determine the beneficiary.

In Chapter 4, foreign partnerships are withholding beneficiary if they are withholding foreign partnerships that have not acted as an agent or intermediary for the payment. If the partnership is not a withholding agent of a foreign partnership, the beneficiary will be a partner (including a partner who is not treated as a beneficiary in Chapter 4).

Example 1.

Unpassed foreign partnerships include no n-residents' individuals, foreign corporations, and US citizens. Pay the interest of the US source to the partnership. This payment is eligible for Chapter 3 withholding, but is not eligible for withholding. The partnership will give you a W-8imy form, a W-8ben form from non-residential foreigners, W-8ben-E form from foreign corporations, and W-9 form from US citizens. Partnership also issues withholding books that can associate a part of interest payments to each partner.

All three partners must be treated as a beneficiary in the interest payment part as if they were paid directly. Payments to non-resident foreigners and foreign corporations will be reported by form 1042-s. Payment to US citizens will be reported in Form 1099-INT. This payment is not the subject of withholding, so you do not need to specify the status of Chapter 4 of the partnership.

Example 2. Foreign partnership refers to a partnership that is not organized by the US or Colombia special ward (including a partnershi p-classified entity) or a partnership treated as a foreign partnership under the Income Tax Law. If the foreign partnership is not a withholding foreign partnership, the recipient of the income is a partner partner. However, partnerships are not treated as financially transparent in the tax treaty and meet all other requirements for claiming the tax treaty. If you request, the beneficiary will be partnership itself. If your partner is a foreign frog business or foreign intermediary, apply the beneficiary rules to your partner to determine the beneficiary.

Example 1.

Example 2. Foreign partnership refers to a partnership that is not organized by the US or Colombia special ward (including a partnership classified) or a partnership treated as a foreign partnership under the Income Tax Law. If the foreign partnership is not a withholding foreign partnership, the recipient of the income is a partner partner. However, partnerships are not treated as financially transparent in the tax treaty and meet all other requirements for claiming the tax treaty. If you request, the beneficiary will be partnership itself. If your partner is a foreign frog business or foreign intermediary, apply the beneficiary rules to your partner to determine the beneficiary.

In Chapter 4, foreign partnerships are withholding beneficiary if they are withholding foreign partnerships that have not acted as an agent or intermediary for the payment. If the partnership is not a withholding agent of a foreign partnership, the beneficiary will be a partner (including a partner who is not treated as a beneficiary in Chapter 4).
Example 1.
Unpassed foreign partnerships include no n-residents' individuals, foreign corporations, and US citizens. Pay the interest of the US source to the partnership. This payment is eligible for Chapter 3 withholding, but is not eligible for withholding. The partnership will give you a W-8imy form, a W-8ben form from non-residential foreigners, W-8ben-E form from foreign corporations, and W-9 form from US citizens. Partnership also issues withholding books that can associate a part of interest payments to each partner.
All three partners must be treated as a beneficiary in the interest payment part as if they were paid directly. Payments to non-resident foreigners and foreign corporations will be reported by form 1042-s. Payment to US citizens will be reported in Form 1099-INT. This payment is not the subject of withholding, so you do not need to specify the status of Chapter 4 of the partnership.

Example 2.

A foreign corporation with no withholding has two partners. A second partnership has two partners, both of whom are nonresident aliens. You pay U. S. interest to the first partnership. Assume that this payment is subject to chapter 3 withholding but is not withheld. The partnership gives you a valid W-8IMY form that links the W-8BEN-E form from the foreign corporation to the W-8IMY form from the second partnership. In addition, the Form W-8BEN from the partner is linked to the Form W-8IMY from the second partnership. The W-8IMY form from the partnership has a complete withholding statement associated with it. Because you can certainly link a portion of the interest payment to the Form W-8BEN-E submitted by the foreign partnership and the Form W-8BEN submitted by the foreign individual partner as a result of the withholding statement, you must treat them as the beneficial owner of the interest. This payment is not subject to withholding, so there is no need to verify the partnership's chapter 4 status.

Example 3.

You paid a dividend from the United States to a foreign withholding company. Assume that the payment is subject to capital 3 withholding and no withholding. The partnership has two partners, both of whom are foreign corporations. You can reliably link the payment to a valid Form W-8IMY from the partnership that states the partnership is a foreign partnership with withholding. You must treat the partnership as the recipient of the dividend under both chapters 3 and 4 to determine the partnership's chapter 4 status.

Foreign Simple Trusts and Grantner Trusts.

A trust is a foreign trust unless it meets both of the following tests:

A court in the United States can exercise primary supervision over the administration of the trust.

One or more U. S. persons have the power to control all of the trust's substantive decision-making.

Foreign Persons

In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679.

The beneficiary of a payment to a foreign simple trust is the beneficiary of the trust. The beneficiary of a payment to a foreign grantor trust is the owner of the trust. However, if you claim tax treaty benefits on the basis that the trust is not financially transparent and meets all other requirements for claiming tax treaty benefits, the beneficiary is the foreign simple trust itself or the grantor. If the beneficiaries or holders are the same flow-through entity or foreign intermediary, you determine the beneficiary by applying the beneficiary determination rules to the beneficiary or holder.

Example

A foreign simple trust has three beneficiaries (two nonresident aliens and one U. S. citizen). You make a U. S. interest payment to the foreign trust. Assume that the payment is subject to chapter 3 withholding but not withheld. The foreign trust submits to you a W-8BEN form from the nonresident alien and a W-8IMY form with a W-9 form from the U. S. citizen. The trust also provides a complete withholding statement that allows you to link the interest payment to the forms submitted by each beneficiary. All three beneficiaries must be treated as the beneficiaries of the interest payment as if the payment was made directly to the beneficiary. Payments to nonresident aliens are reported on Form 1042-S. Payments to U. S. citizens are reported on Form 1099-INT. Because this payment is not a deductible payment, you do not need to specify the chapter 4 status of the trust.

Financially transparent entities claiming tax treaty benefits.

In order to receive the benefits of the tax treaty, a certain entity is transparent in the United States (for example, tax breathing entity or flo w-through business), and its entity is a member of the Tax Treaty. If you are treated or treated as a person, the entity will have income elements and can receive the benefits of the tax treaty. In this case, the entity is the beneficiary in Chapter 3. However, in the law of tax treaties where the tax treaty is applied, this item must be included in the income of the entity, not interest income. In addition, if there is a benefit restriction clause in the tax treaty, other requirements for claiming benefits, including that, must be met. In such a case, companies must submit the W-8ben-E form to the US withholding obligation. In the application of Chapter 3, if the beneficiary is a foreign corporation or other entrepreneurs that are not fluid in the US national tax, if the entity is transparent in the residential country (that is, the Foreign Reverse Hybrid), the Treatment Treaty. There is no right to claim the benefit of. Instead, the holder living in the country may bring out the items paid to a foreign reverse hybrid, and may obtain the following qualifications. In order to receive the benefits of the tax treaty, a certain entity is transparent in the United States (for example, tax breathing and flo w-through businesses), and the entity is a member of the Terms and Treaty. If you are treated or treated as a resident of the country, the entity will have income elements and will be able to receive the benefits of the Tax Treaty. In this case, the entity is the beneficiary in Chapter 3. However, in the law of tax treaties where the tax treaty is applied, this item must be included in the income of the entity, not interest income. In addition, if there is a benefit restriction clause in the tax treaty, other requirements for claiming benefits, including that, must be met. In such a case, companies must submit the W-8ben-E form to the US withholding obligation. In the application of Chapter 3, if the beneficiary is a foreign corporation or other entrepreneurs that are not fluid in the US national tax, if the entity is transparent in the residential country (that is, the Foreign Reverse Hybrid), the Treatment Treaty. There is no right to claim the benefit of. Instead, the holder living in the country may bring out the items paid to a foreign reverse hybrid, and may obtain the following qualifications. In order to receive the benefits of the tax treaty, a certain entity is transparent in the United States (for example, tax breathing entity or flo w-through business), and its entity is a member of the Tax Treaty. If you are treated or treated as a person, the entity will have income elements and can receive the benefits of the tax treaty. In this case, the entity is the beneficiary in Chapter 3. However, in the law of tax treaties where the tax treaty is applied, this item must be included in the income of the entity, not interest income. In addition, if there is a benefit restriction clause in the tax treaty, other requirements for claiming benefits, including that, must be met. In such a case, companies must submit the W-8ben-E form to the US withholding obligation. In the application of Chapter 3, if the beneficiary is a foreign corporation or other entrepreneurs that are not fluid in the US national tax, if the entity is transparent in the residential country (that is, the Foreign Reverse Hybrid), the Treatment Treaty. There is no right to claim the benefit of. Instead, the holder living in the country may bring out the cock for the items paid to the foreign reverse hybrid, and may obtain the following qualifications.

The decision whether a company is financially transparent is based on the elements of income (that is, the interest, dividends, and royalty, etc. are individually determined). The owner of the entity shall apply to organize, incorporate, and other residents, and make decisions. Regardless of whether it has been distributed to beneficiaries, corporations require that beneficiary is currently demanding that the beneficiaries are currently accounting on the equity of the income of the beneficiaries on a basis. As long as the personality and source of income and source are determined directly from the source paid to the corporation, it is regarded as financially transparent in income. Based on the "knowledge standard for the purpose" in Chapter 3 and the "knowledge standard for the purpose" in Chapter 4, the business usually based on the FORM W-8imy submitted by the entity. Judge that the body is financially transparent.

For the purpose of Chapter 3, the beneficiaries paid to the taxable transparent entity will be the beneficiaries of the entity if the interests claim the benefits under the tax treaty for the payment.

For the purpose of Chapter 4, when withholding to a financially transparent entity, the regulator in Chapter 4 is applied to determine the recipient (apply the abov e-mentioned rules) and the recipient Based on the status information in Chapter 4, you must determine whether or not the withholding of Chapter 4 will be applied to the payment. Therefore, Chapter 4 Gen Izumi Collection, even if the owner of the company can reduce the withholding tax based on the Income Tax Tax Treaty, based on the 4th Chapter of the company. , Financially transparent companies may be applied to the payment of withholding tax. Based on both the 4 chapter states and the reduction of withholding, if the payments are not subject to the 4th Chapter 4, it may provide a treaty on the treaty. 。

example
Corporation A is a corporate organization organized based on the law of the country X, which concludes tax treaties with the United States. The business entity A has two beneficiary B and C. B is a corporation organized based on the law of the Y country, and C is a corporation organized under the law of the Z country. B and Z countries have concluded a tax treaty with the United States. Judgment whether a company is financially transparent is based on the elements of income (that is, interest, dividends, and royalty, etc. are individually determined). The owner of the entity shall apply to organize, incorporate, and other residents, and make decisions. Regardless of whether it has been distributed to beneficiaries, corporations require that beneficiary is currently demanding that the beneficiaries are currently accounting on the equity of the income of the beneficiaries on a basis. As long as the personality and source of income and source are determined directly from the source paid to the corporation, it is regarded as financially transparent in income. Based on the "knowledge standard for purpose" in Chapter 3 and the "knowledge standard for the purpose" in Chapter 4, the business usually based on the Form W-8imy submitted by the entity. Judge that the body is financially transparent.

For the purpose of Chapter 3, the beneficiaries paid to the taxable transparent entity will be the beneficiaries of the entity if the interests claim the benefits under the tax treaty for the payment.
For the purpose of Chapter 4, when with withholding to a financially transparent entity, the regulator in Chapter 4 is applied to determine the recipient (apply the abov e-mentioned rules) and the recipient Based on the status information in Chapter 4, you must determine whether the payment of Chapter 4 is applied to the payment. Therefore, Chapter 4 Gen Izumi Collection, even if the owner of the company can reduce the withholding tax based on the Income Tax Tax Treaty, based on the 4th Chapter of the company. , Financially transparent companies may be applied to the payment of withholding tax. Based on both the 4 chapter states and the reduction of withholding, if the payments are not subject to the 4th Chapter 4, it may provide a treaty on the treaty. 。₃example₆Corporation A is a corporate organization organized based on the law of the country X, which concludes tax treaties with the United States. The business entity A has two beneficiary B and C. B is a corporation organized based on the law of the Y country, and C is a corporation organized under the law of the Z country. B and Z countries have concluded a tax treaty with the United States. The decision whether a company is financially transparent is based on the elements of income (that is, the interest, dividends, and royalty, etc. are individually determined). The owner of the entity shall apply to organize, incorporate, and other residents, and make decisions. Regardless of whether it has been distributed to beneficiaries, corporations require that beneficiary is currently demanding that the beneficiaries are currently accounting on the equity of the income of the beneficiaries on a basis. As long as the personality and source of income and source are determined directly from the source paid to the corporation, it is regarded as financially transparent in income. Based on the "knowledge standard for the purpose" in Chapter 3 and the "knowledge standard for the purpose" in Chapter 4, the business usually based on the FORM W-8imy submitted by the entity. Judge that the body is financially transparent.

For the purpose of Chapter 4, when with withholding to a financially transparent entity, the regulator in Chapter 4 is applied to determine the recipient (apply the abov e-mentioned rules) and the recipient Based on the status information in Chapter 4, you must determine whether the payment of Chapter 4 is applied to the payment. Therefore, Chapter 4 Gen Izumi Collection, even if the owner of the company can reduce the withholding tax based on the Income Tax Tax Treaty, based on the 4th Chapter of the company. , Financially transparent companies may be applied to the payment of withholding tax. Based on both the 4 chapter states and the reduction of withholding, if the payments are not subject to the 4th Chapter 4, it may provide a treaty on the treaty. 。

example

Corporation A is a corporate organization organized based on the law of the country X, which concludes tax treaties with the United States. The business entity A has two beneficiary B and C. B is a corporation organized based on the law of the Y country, and C is a corporation organized under the law of the Z country. B and Z countries have concluded a tax treaty with the United States.

A has received a royalty income that is not related to transactions and businesses in the United States from the US source, which is not a withholding payment. This payment is not a withholdable payment, so it is not necessary to determine Chapter 4 of A.

Under the US Income Tax Law, A is treated as a partnership. In the country X, it is treated as a partnership, and it is required that the owners of the owners of each other are currently accounting on their own equity, regardless of the income paid to Company A, even if the income is not distributed. In the law of the country, the property and source of the owner of A are determined as if the income was directly realized by the source paid by A.
B and C are not financially transparent by the laws of each corporate established country. The country Y requests that A paid A paid to A separately on the current base, and the character and source of the income B are realized directly from the source where the income was paid to A. It is decided as if it were just a good idea. Thus, A is financially transparent in the income under the law of Y Country Y, and B is treated as a US source royalty income under the US Income Tax Treaty. On the other hand, Country Z does not require a corporation to take into account the income A's income on a basis, regardless of distribution. Therefore, A is not treated as financially transparent by the law of the Z country. Therefore, C is not treated as a US-Z income tax treaty as a royalty income of the US source.
In most cases, when paying a foreign intermediary, the beneficiary is not the broker itself, but a person who collects the payment by foreign intermediaries, such as account holders and customers. This rule is applied to the 3rd Chapter Spring, the withholding with the format 1099, and the collection of Chapter 4, but it is not a no n-participation FFI that performs the withholding of the payment in which Chapter 4 is applied. Is a condition. However, there is no need to treat the Qi, which has a firs t-established withholding tax, as a recipient, and do not need to withhold a hot spring. A has received a royalty income that is not related to transactions and businesses in the United States from the US source, which is not the subject of withholding. This payment is not a withholdable payment, so it is not necessary to determine Chapter 4 of A.

Under the US Income Tax Law, A is treated as a partnership. In the country X, it is treated as a partnership, and it is required that the owners of the owners of each other are currently accounting on their own equity, regardless of the income paid to Company A, even if the income is not distributed. In the law of the country, the property and source of the owner of A are determined as if the income was directly realized by the source paid by A.

B and C are not financially transparent by the laws of each corporate established country. The country Y requests that A paid A paid to A separately on the current base, and the character and source of the income B are realized directly from the source where the income was paid to A. It is decided as if it were just a good idea. Thus, A is financially transparent in the income under the law of Y Country Y, and B is treated as a US source royalty income under the US Income Tax Treaty. On the other hand, Country Z does not require a corporation to take into account the income A's income on a basis, regardless of distribution. Therefore, A is not treated as financially transparent by the law of the Z country. Therefore, C is not treated as a US-Z income tax treaty as a royalty income of the US source.

In most cases, when paying a foreign intermediary, the beneficiary is not the broker itself, but a person who collects the payment by foreign intermediaries, such as account holders and customers. This rule is applied to the 3rd Chapter Spring, the withholding with the format 1099, and the collection of Chapter 4, but it is not a no n-participation FFI that performs the withholding of the payment in which Chapter 4 is applied. Is a condition. However, there is no need to treat the Qi, which has a firs t-established withholding tax, as a recipient, and do not need to withhold a hot spring. A has received a royalty income that is not related to transactions and businesses in the United States from the US source, which is not a withholding payment. This payment is not a withholdable payment, so it is not necessary to determine Chapter 4 of A.

In most cases, when paying a foreign intermediary, the beneficiary is not the broker itself, but a person who collects the payment by foreign intermediaries, such as account holders and customers. This rule is applied to the 3rd Chapter Spring, the withholding with the format 1099, and the collection of Chapter 4, but it is not a no n-participation FFI that performs the withholding of the payment in which Chapter 4 is applied. Is a condition. However, there is no need to treat the Qi, which has a firs t-established liability withholding tax for payment, as a recipient, and does not need to withhold.
An intermediary is a person who acts as a custodian, broker, nomine, and other agents. Foreign intermediaries are either Qi or NQI. In most cases, the intermediary determines whether the company is Qi or NQI based on the content described in the W-8imy form.

Regarding Chapter 3, it is determined whether the customer or the account holder of the foreign broker is an American or a foreigner, and if the account holder or the customer is a foreigner, the reduced tax rate in Chapter 3 Or you have to judge whether the exemption will be applied. In Chapter 4, in general, if the payment is a withholdable payment, you must determine the status of Chapter 4 of the foreign broker's account. When the withholding of Chapter 4 is applied (that is, when the status of Chapter 4 of a foreign broker is a no n-participation FFI or a no n-participant FFI or a branch) No judgment for the purpose of Chapter 3 is required. Judgment based on foreign intermediary style W-8imy and related information and documents. If you do not have all the information or documents required to ensure the payment and the recipient, you must apply the estimated provisions of Chapter 3 and determine the entity status in Chapter 4. If not, the estimated provisions of Chapter 4 must be applied to foreign intermediaries. See the documentation and estimated rules described below.

Special provisions of Chapter 4

Chapter 4 If the other person is not a beneficiary, or the other is not a beneficiary:

However, except that NFFE is Qi, which is obliged to withhold hot springs in Chapter 3 and Chapter 4. lingering
Participation FFI, which is regarded as a component FFI or limited distributor (except if the company is the Qi who is responsible for the withholding tax for Chapter 3 and Chapter 4).
When a withholding payment payment is made to the above type of entrepreneurs, the recipient refers to the person who collects the payment by an agent or an intermediary.

No n-qualified broker (NQI).

NQI is a foreigner, not Qi. For the purpose of both Chapter 3 and Chapter 4, the paid paid paid to NQI is a customer or an account holder performing a substitute by NQI.

Example An intermediary refers to a person who acts as a custodian, broker, nominny, or other person's agent. Foreign intermediaries are either Qi or NQI. In most cases, the intermediary determines whether the company is Qi or NQI based on the content described in the W-8imy form.

Special provisions of Chapter 4

Chapter 4 If the other person is not a beneficiary, or the other is not a beneficiary:

However, except that NFFE is Qi, which is obliged to withhold hot springs in Chapter 3 and Chapter 4. lingering

Participation FFI, which is regarded as a component FFI or limited distributor (except if the company is the Qi who is responsible for the withholding tax for Chapter 3 and Chapter 4).

Additional Rules Specific to Chapter 4

When a withholding payment payment is made to the above type of entrepreneurs, the recipient refers to the person who collects the payment by an agent or an intermediary.

No n-qualified broker (NQI).

NQI is a foreigner, not Qi. For the purpose of both Chapter 3 and Chapter 4, the paid paid paid to NQI is a customer or an account holder performing a substitute by NQI.

Example intermediaries are a person who acts as a custodian, a broker, a nominny, or another person's agent. Foreign intermediaries are either Qi or NQI. In most cases, the intermediary determines whether the company is Qi or NQI based on the content described in the W-8imy form.
Regarding Chapter 3, it is determined whether the customer or the account holder of the foreign broker is an American or a foreigner, and if the account holder or the customer is a foreigner, the reduced tax rate in Chapter 3 Or you have to judge whether the exemption will be applied. In Chapter 4, in general, if the payment is a withholdable payment, you must determine the status of Chapter 4 of the foreign broker's account. When the withholding of Chapter 4 is applied (that is, when the status of Chapter 4 of a foreign broker is a no n-participation FFI or a no n-participant FFI or a branch) No judgment for the purpose of Chapter 3 is required. Judgment based on foreign intermediary style W-8imy and related information and documents. If you do not have all the information or documents required to ensure the payment and the recipient, you must apply the estimated provisions of Chapter 3 and determine the entity status in Chapter 4. If not, the estimated provisions of Chapter 4 must be applied to foreign intermediaries. See the documentation and estimated rules described below.
Special provisions of Chapter 4
Chapter 4 If the other person is not a beneficiary, or the other is not a beneficiary:
However, except that NFFE is Qi, which is obliged to withhold hot springs in Chapter 3 and Chapter 4. lingering

Participation FFI, which is regarded as a component FFI or limited distributor (except if the company is the Qi who is responsible for the withholding tax for Chapter 3 and Chapter 4).

Documentation

Documentation for Chapter 3

When a withholding payment payment is made to the above type of entrepreneurs, the recipient refers to the person who collects the payment by an agent or an intermediary.

No n-qualified broker (NQI).
NQI is a foreigner, not Qi. For the purpose of both Chapter 3 and Chapter 4, the paid paid paid to NQI is a customer or an account holder performing a substitute by NQI.

example

I paid interest to foreign banks, NQI. Chapter 3 is subject to withholding, but it is not the subject of withholding. The bank will give you a W-8imy form, two foreign W-8ben forms, and the W-9 form of the American receiving the bank. The bank also attaches the withholding statement (Form W-8imy A) to be used for interest payment, and provides all other information required for withholding. The account holder is the beneficiary of interest payment. Among the interests, the paid to the two foreigners must be the form 1042-s, and the paid to the Americans must be reported in the form 1099-int. Since this payment is not a payment to be withholding, there is no need to specify the NQI Chapter 4 Hosono.

Documentation for Chapter 4

A qualified intermediary (Qi).

Qi is a foreign broker (or a foreign branch of a US broker) that has a Qi contract (described later) with IRS. There are also corporations that can work as Qi even if they are not intermediaries. Qi can be treated as a recipient as long as Qi undertakes withholding in Chapter 3 and Chapter 4, form of form 1099 and backup withholding tax obligations. In this case, Qi must have withholding. Whether Qi has undergone the withholding obligations can be determined from the Form W-8imy submitted by Qi.

Payment to Qi, which does not undertake the withholding responsibility for Qi, Chapter 3 and Chapter 4, is considered to be paid to the person on behalf of the Qi. If Qi does not have the responsibility of reporting and withholding tax, as if he had paid directly to the American, he must report the form 1099 and the backup withholding tax. reference. See the eligible intermediaries (Qi: Qualified Intermediary) (described later). This section describes the case where the interest with the interest in interest can be included in the US beneficiary pool in the US beneficiary pool.
Furthermore, from January 1, 2023, Qi will also provide primary withholding to the transfer of the PTP distribution (including withholding tax based on Article 1446 (a)) and the transfer of the PTP equity for the purpose of Article 1446 (F). You can. See below for these provisions. See the listed partnership distribution (PTP distribution) and Article 1446 (F): PTP.
Certified Production (QDD).

See below for the definition of QDD. For QDD debt, see "The amount paid by QDD".

A financial institution branch.

If a financial institution's branch is not a country that uses the customer confirmation (KNOW-Your-Customer: Kyc), it is not allowed to operate it as Qi. Countries with KYC rules are listed in IRS. GOV/Businesses/International-Businesses/List-OF-APPROC-RULES.

Additional Documentation Rules Applicable to Chapters 3 and 4

Qi contract.

Overseas branches of FFI, external liquidation, US financial institutions, or liquidation institutions can sign a contract to become IRS and Qi. A qualified business (rule 1. 1441-1 (6) (II)) can also sign a Qi contract for QDD. In order to conclude a Qi contract, FFI must have the status of Chapter 4:

Participation FFI (including reference model 2 FFI).

Participation FFI (referred to as a registratio n-related FFI based on reference model 1 FFI and unported model 2 FFI). lingering

FFIs, which are treated as deemed FFIs, are compliant with the applied model 1 IGA, followed by report requirements for the same as applied to the registration FFI compliant with FFI. FFI ").

A specific foreign corporation that acts for those other than the shareholders or foreign central banks can also apply for Qi to IRS.

For more information about getting Qi, see Revenue Procedure 2022-43, 2022-52 I. R. B. 570 available in IRS. GOV/IRB/IRB/2022-43_irb#RP-2022-52.

Qi (excluding NFFE, which acts for no n-specific central banks) is also registered with IRS. GOV/FATCA and must obtain the current Chapter 4 Stess and Global ID number (GIIN). Not.

Document requirements.

For the documentation requirements applied to the payment performed in Qi for the purpose of Chapter 3 and Chapter 4, refer to "Liability and Document" described later in "qualified intermediaries (Qi)".

Report requirements.
See the following for QiS reporting requirements. Forms 1042-S reports and collective refund procedures will be described later by qualified intermediaries (Qi).
Branch of foreign banks and foreign insurance companies.

Special rules apply to US branches of foreign banks under the supervision of the Federal Reserve, or foreign insurance companies under the state's supervision. If you pay the amount or withholding tax to be collected in Chapter 3 to the US branch of the US Bank or the insurance company that you agree to be treated as an American, you can definitely associate with the US branch. The US branch can be treated as a US recipient on the condition of receiving the W-8imy. If you treat a US branch as an American, it is not necessary to withhold the amount to be subject to the source of the source or the payment of payment. Even if you agree to treat the US branch as an American, payment to the US branch must be reported in the format 1042-S.

Area financial institution is a financial institution defined in Chapter 4 (except for deposit institutions, deposit institutions, custodians, or not a designated insurance company), and are established based on the U S-based law. Or is organized. The regional financial institution, which is an intermediate or fros t-rouge entity, is treated as a US branch who agreed to be treated as an American. The special rules described in this section apply to regional financial institutions.

Regardless of whether you pay the US branch to the US branch that is not a withholdable payment, but not to pay the US branch as an American. The payment is treated as a foreigner. Therefore, it is not covered by Chapter 3 withholding, and payments paid to the US branch are not eligible for withholding in form 1099 or backup withholding tax.

Alternatively, the US branch can provide a W-8imy format and link to the format of the agent. In this case, the US branch is not treated as an individual, and the beneficiary is a person who is an agent of the US branch, and can reliably associate valid documents and payments from that person. See the intermediary (NQI) of the document creation described below. Special rules are applied to the U. S. Branch of the Federal Reserve under the Board of Directors, or the foreign insurance company under the state's supervision. If you pay the amount or withholding tax to be collected in Chapter 3 to the US branch of the US Bank or the insurance company that you agree to be treated as an American, you can definitely associate with the US branch. The US branch can be treated as a US recipient on the condition of receiving the W-8imy. If you treat a US branch as an American, it is not necessary to withhold the amount to be subject to the source of the source or the payment of payment. Even if you agree to treat the US branch as an American, payment to the US branch must be reported in the format 1042-S.

Beneficial Owners

Alternatively, the US branch can provide a W-8imy format and link to the format of the agent. In this case, the US branch is not treated as an individual, and the beneficiary is a person who is an agent of the US branch, and can reliably associate valid documents and payments from that person. See the intermediary (NQI) of the document creation described below. Special rules apply to US branches of foreign banks under the supervision of the Federal Reserve, or foreign insurance companies under the state's supervision. If you pay the amount or withholding tax to be collected in Chapter 3 to the US branch of the US Bank or the insurance company that you agree to be treated as an American, you can definitely associate with the US branch. The US branch can be treated as a US recipient on the condition of receiving the W-8imy. If you treat a US branch as an American, it is not necessary to withhold the amount to be subject to the source of the source or the payment of payment. Even if you agree to treat the US branch as an American, payment to the US branch must be reported in the format 1042-S.

Regardless of whether you pay the US branch to the US branch that is not a withholdable payment, but not to pay the US branch as an American. The payment is treated as a foreigner. Therefore, it is not covered by Chapter 3 withholding, and payments paid to the US branch are not eligible for withholding in form 1099 or backup withholding tax.
Alternatively, the US branch can provide a W-8imy format and link to the format of the agent. In this case, the US branch is not treated as an individual, and the beneficiary is a person who is an agent of the US branch, and can reliably associate valid documents and payments from that person. See the intermediary (NQI) of the document creation described below.
If the W-8IMY from the US branch cannot be associated with the payment, but the employment number (EIN) of the branch is obtained, the income related to the US trading or business is substantially related. It is necessary to treat it as a payment to individuals obtained. If the payment and the W-8imy form from the US branch cannot be associated with the branch, the payment is not obtained in the United States trading or business in the United States. You should pay for the income.
Foreign partnership withholding and withholding of foreign trusts.

Foreign source partnership (WP) is a foreign partnership that concludes a WP agreement with IRS and plays a role in partners. Foreign withholding trust (WT) is a foreign simple trust or beneficiary that concludes a WT contract with IRS and plays its role for its owner and beneficiary. In order to conclude IRS and WT contracts, WP or WT, which is FFI, must have the status of Chapter 4:

Participation FFI (including model 2ffi report),

Registered deemed deemed FFI (including model 1 Report FFI and registered FFI, which is treated as a registered FFI),

Sampleted no n-registered compatible model 1 IGA FFI or

Retirement fund.

NFFE WP or WT can sign a WP or WT contract with IRS. FFI, a foreign reverse hybrid entity, can apply for a WP agreement on the condition that the FFI is a participation, registered FFI, or registered model 1 IGA FFI. W-8imy and payment from the US branch cannot be reliable, but if you have obtained the employment number (EIN) of the branch, it is effectively related to transactions or businesses in the United States. It is necessary to handle it as a payment to an individual who earns income. If the payment and the W-8imy form from the US branch cannot be associated with the branch, the payment is not obtained in the United States trading or business in the United States. You should pay for the income.

Foreign partnership withholding and withholding of foreign trusts.

Foreign source partnership (WP) is a foreign partnership that concludes a WP agreement with IRS and plays a role in partners. Foreign withholding trust (WT) is a foreign simple trust or beneficiary that concludes a WT contract with IRS and plays its role for its owner and beneficiary. In order to conclude IRS and WT contracts, WP or WT, which is FFI, must have the status of Chapter 4:
Participation FFI (including model 2ffi report),

Registered deemed deemed FFI (including model 1 Report FFI and registered FFI, which is treated as a registered FFI),

Sampleted no n-registered compatible model 1 IGA FFI or

Retirement fund.

NFFE WP or WT can sign a WP or WT contract with IRS. FFI, a foreign reverse hybrid entity, can apply for a WP agreement on the condition that the FFI is a participation, registered FFI, or registered model 1 IGA FFI. If the W-8IMY from the US branch cannot be associated with the payment, but the employment number (EIN) of the branch is obtained, the income related to the US trading or business is substantially related. It is necessary to treat it as a payment to individuals obtained. If the payment and the W-8imy form from the US branch cannot be associated with the branch, the payment is not obtained in the United States trading or business in the United States. You should pay for the income.

Foreign partnership withholding and withholding of foreign trusts.
Foreign source partnership (WP) is a foreign partnership that concludes a WP agreement with IRS and plays a role in partners. Foreign withholding trust (WT) is a foreign simple trust or beneficiary that concludes a WT contract with IRS and plays its role for its owner and beneficiary. In order to conclude IRS and WT contracts, WP or WT, which is FFI, must have the status of Chapter 4:
Participation FFI (including model 2ffi report),
Registered deemed deemed conformity FFI (model 1 Report FFI and registered FFI, which is treated as registered FFI),

Sampleted no n-registered compatible model 1 IGA FFI or

Retirement fund.

NFFE WP or WT can sign a WP or WT contract with IRS. FFI, a foreign reverse hybrid entity, can apply for a WP Agreement on the condition that the FFI is a FFI, registered FFI, or registered model 1 IGA FFI.

A WP or WT must act in this capacity with respect to amounts distributable to or included in a direct partner, beneficiary, or owner. A WP or WT may act in this capacity with respect to amounts distributable to or included in a distribution to an indirect partner, beneficiary, or owner that is not a U. S. payee (other than a U. S. payee included in chapter 4 interest withholding for a U. S. beneficiary). A WP or WT acting in such capacity must be subject to chapter 3 and chapter 4 withholding liability for payments subject to withholding and must be subject to certain reporting obligations with respect to the U. S. partner, beneficiary, or owner. A WP or WT may be treated as a beneficiary if it files a statement (described below) stating that it is acting as a WP or WT with respect to such amounts. For more information about WPs or WTs, see Revenue Procedure 2017-21, 2017-6 I. R. B. 791, available at IRS. gov/IRB/2017-06_IRB#RP-2017-21.

WP and WT Agreements.

WP and WT agreements and the application procedures are described in the previous Revenue Procedure 2017-21. WP or WT qualification is applied for in the IRS. gov/businesses/corporations/qualified-intermentiary system. WPs or WTs are assigned a WP-EIN or WT-EIN to be used only when acting in that capacity.

A WP or WT that is an FFI (other than a retirement fund) must register with the IRS at IRS. gov/businesses/corporations/fatca-foreign-financial-institution-cistration-system and obtain the applicable chapter 4 and giin.

Prove with documentation.

The WP or WT must submit a Form W-8IMY certifying that the WP or WT is acting in that capacity and providing the WP-EIN or WT-EIN and all other information and certifications required by the form. When making withholding payments to a WP or WT, the WP or WT may generally also submit a Certificate of Chapter 4 status granted to the WP or WT (and a GIIN, if applicable). When acting in such a capacity, the WP or WT is not required to submit a withholding slip or to disclose information about its direct partners, beneficial owners, or owners, or indirect partners, beneficial owners, or owners acting as the WP or WT who are not non-applicable U. S. payees (except for non-applicable U. S. payees included in a chapter 4 withholding rate group for U. S. payees). Chapter 4 withholding rate group also means an individual type of income payment allocated to a U. S. payee if the WP provides the certification required on Form W-8IMY to allocate the payment to its shares. If the WP or WT does not act as a WP or WT with respect to amounts distributed or included in the distribution to an indirect partner, beneficial owner, or owner, the WP or WT must submit a Foreign Nonwithholding Partnership Certificate or a Foreign Withholding Certificate.
Related rules for Chapters 3 and 4.
A payee is subject to withholding only if it is a foreign person. Foreign persons include nonresident alien individuals, foreign corporations, foreign partnerships, foreign trusts, foreign estates, and other persons that are not U. S. persons. It also includes foreign branches of U. S. financial institutions if they are QIs. In most cases, U. S. branches of foreign corporations and partnerships are treated as foreign persons. U. S. tax law determines whether a foreign person is treated as an entity (that is, separate from its owners and disregarded) or as a foreign corporation, foreign partnership, or foreign trust.

If an amount is both a withholdable payment and subject to chapter 3 withholding and the withholding agent withholds under chapter 4, the amount may be credited against the tax due under chapter 3.
Nonresident alien.
A nonresident alien is a person who is neither a U. S. citizen nor a resident alien. A resident of a foreign country under the residence provisions of an income tax treaty is a nonresident alien for withholding purposes.

Married to a U. S. citizen or foreign national.
Nonresident aliens who are married to a U. S. citizen or foreign national may elect to be treated as resident aliens for certain income tax purposes. However, these individuals are subject to the Chapter 3 withholding rules applicable to nonresident aliens for all income except wages. Wages paid to these individuals are subject to withholding. See "Wages Paid to Employees - Graduation from Withholding" (below).
Resident alien.

A resident alien is a person who is neither a citizen nor a national of the United States who satisfies either the green card test or the substantial presence test during the calendar year.

Green card test. An alien is a resident alien if he or she was a lawful permanent resident of the United States at any time during the calendar year. This is known as the green card test because of the possession of an immigrant visa (also known as a green card).

Significant presence test. An alien is considered a resident alien if he or she meets the substantial presence test for the calendar year. This test requires that the alien must be physically present in the United States for at least the following days:

31 days or more during the current calendar year; and
183 days during the current year and the two preceding years (counting all days of physical presence during the current year, but only one day during the previous year).
1/2 the number of days of attendance during the previous year.

Days of attendance during the year before.

In most cases, days an alien is in the United States as a teacher, student, or trainee on an "F", "J", "M", or "Q" visa are not counted. This exception is for a limited time only.

For more information on resident and nonresident status, the residency test, and exemptions, see Pub. 519.

If an employee delays in notifying the employee of a change in status from nonresident alien to resident alien, a Form 941 adjustment may be required if the employee is exempt from Social Security and Medicare withholding as a nonresident alien. For more information on adjustments, see Chapter 13 of Pub. 15 (Circular E).

Residents of U. S. territories.

Puerto Rico, US Virgin Islands (USVI), Guam, Northern Mariana Islands Federation (CNMI), U. S. residents who are not US citizens or no n-US citizens, no n-exposed to the withholding with withholding here. It is treated as a person. A resident of the area in the area refers to the following people:

31 days or more during the current calendar year; and
Do not have a place of residence outside the area.
There is no closer relationship with the United States or foreign countries than that area.
For details, PUB. 570.

Foreign corporation.

Foreign corporations are corporations that do not apply to the definition of domestic corporations. Interior corporations are a corporation established or organized under the laws of the United States or the United States, any of the states, and the Colombia special ward.

Guam or CNMI corporation.

Corporations established or organized under the law of Guam or CNMI are not considered to be foreign corporations in the following cases in terms of taxation year.

During the taxation year, foreigners own less than 25%of the company's shares, regardless of indirectly and indirectly. and
At least 20%of the total income of the corporation must be derived from the source in Guam or CNMI in the three years until the end of the taxation year of the corporation (if it is shorter, if it is shorter).
The following provisions for USVI and US territory Samoa are applied to Guam or CNMI corporations.
USVI and US territory Samoa corporation.

Corporations established or organized under the law of the US territory Virgin Islands or Samoa, the US territory are not considered foreign corporations in the withholding tax in the taxation year:

Foreigners directly or indirectly owns less than 25%of the stock value of the company during any of the taxation years.

At least 65%of the total income of the company is 3 years until the end of the taxation year of the company (if it is short, the company or its predecessor is present), USVI, US territory, Guam, CNMI, or the United States. It is substantially related to the transaction or business performed in. Puerto Rico, US Virgin Islands (USVI), Guam, the Northern Mariana Islands Federation (CNMI), US residents of Samoa, and no n-US citizens or no n-US nationals are the withholding rules described here. It is treated as a no n-resident foreigner. A resident of the area in the area refers to the following people:

Completing the presencestast,

Do not have a place of residence outside the area.

During the taxation year, foreigners own less than 25%of the company's shares, regardless of indirectly and indirectly. and
For details, PUB. 570.
At least 20%of the total income of the corporation must be derived from the source in Guam or CNMI in the three years until the end of the taxation year of the corporation (if it is shorter, if it is shorter).
Foreign corporations are corporations that do not apply to the definition of domestic corporations. Interior corporations are a corporation established or organized under the laws of the United States or the United States, any of the states, and the Colombia special ward.

Guam or CNMI corporation.

Foreign Intermediaries and Foreign Flow-Through Entities

Corporations established or organized under the law of Guam or CNMI are not considered to be foreign corporations in the following cases in terms of taxation year.

During the taxation year, foreigners own less than 25%of the company's shares, regardless of indirectly and indirectly. and

At least 20%of the total income of the corporation must be derived from the source in Guam or CNMI in the three years until the end of the taxation year of the corporation (if it is shorter, if it is shorter).

The following provisions for USVI and US territory Samoa are applied to Guam or CNMI corporations.
USVI and US territory Samoa corporation.
Corporations established or organized under the law of the US territory Virgin Islands or Samoa, the US territory are not considered foreign corporations in the withholding tax in the taxation year:
Foreigners directly or indirectly owns less than 25%of the stock value of the company during any of the taxation years.
At least 65%of the total income of the company is 3 years until the end of the taxation year of the company (if it is short, the company or its predecessor is present), USVI, US territory, Guam, CNMI, or the United States. It is substantially related to the transaction or business performed in. Puerto Rico, US Virgin Islands (USVI), Guam, Northern Mariana Islands Federation (CNMI), U. S. residents who are not US citizens or no n-US citizens, no n-exposed to the withholding with withholding here. It is treated as a person. A resident of the area in the area refers to the following people:
Completing the presencestast,
Do not have a place of residence outside the area.
There is no closer relationship with the United States or foreign countries than that area.
For details, PUB. 570.
Foreign corporation.

Guam or CNMI corporation.

Corporations established or organized under the law of Guam or CNMI are not considered to be foreign corporations in the following cases in terms of taxation year.

Foreigners own less than 25%of the company's shares, regardless of the tax year, regardless of indirect year. and

At least 20%of the total income of the corporation must be derived from the source in Guam or CNMI in the three years until the end of the taxation year of the corporation (if it is shorter, if it is shorter).
The following provisions for USVI and US territory Samoa are applied to Guam or CNMI corporations.
USVI and US territory Samoa corporation.

Corporations established or organized under the law of the US territory Virgin Islands or Samoa, the US territory are not considered foreign corporations in the withholding tax in the taxation year:

Foreigners directly or indirectly owns less than 25%of the stock value of the company during any of the taxation years.

The substantial part of our company's revenue must not be used directly, regardless of the USVI, US territory Samoa, Guam, CNMI, or a no n-US resident person.

Foreign private institution.

A private foundation established or organized under foreign law is a foreign private foundation. The total investment income from the US source paid to a no n-granted private Foundation is subject to 4 % (excluding cases exempted by the treaty) instead of a normal legal tax rate of 30 %.
Other foreign organizations, organizations, and charity organizations.
Even organizations established under foreign law may exempt the income tax based on Article 501 (A), and may be exempted from withholding in Chapter 4. In most cases, there is no need to withhold an income payment to such foreign ta x-exempt organizations unless the IRS is a foreign private foundation.

However, payment to these organizations must be reported in the format 1042-s if the withholding of Chapter 3 is not performed without withholding.

The withholding tax of foreign tax-exempt organizations (listed in the 598th edition) is a style that proves that the income is substantially related to the trading or business of the United States If the organization is not submitted, it must be performed in the same way as withholding to the same income of ta x-exempted organizations.
Foreign branches in the United States
In most cases, the payment of foreigners to the US branch is paid to the foreigner. However, payments to foreign banks and foreign insurance companies under the US regulations can be considered to be paid to Americans, for this purpose, act as brokerage. Or the financial institution, which is a fund flow company, is treated as a US branch.
Only if the recipient is a foreign entrepreneur, it is subject to withholding in Chapter 4. In Chapter 4, a foreign entry in Chapter 4 means a non-human entry, and includes an regional entity defined in rules 1. 1471-1 (B) (129). The substantial part of the company's revenue must not be used directly or indirectly to satisfy the debt of USVI, US territory Samoa, Guam, CNMI, or no n-US residents.

Foreign private institution.

A private foundation established or organized under foreign law is a foreign private foundation. The total investment income from the US source paid to a no n-granted private Foundation is subject to 4 % (excluding cases exempted by the treaty) instead of a normal legal tax rate of 30 %.

Qualified Intermediary (QI)

Other foreign organizations, organizations, and charity organizations.

Even organizations established under foreign law may exempt the income tax based on Article 501 (A), and may be exempted from withholding in Chapter 4. In most cases, there is no need to withhold an income payment to such foreign ta x-exempt organizations unless the IRS is a foreign private foundation.

However, payment to these organizations must be reported in the format 1042-s if the withholding of Chapter 3 is not performed without withholding.

The withholding tax of foreign tax-exempt organizations (listed in the 598th edition) is a style that proves that the income is substantially related to the trading or business of the United States If the organization is not submitted, it must be performed in the same way as withholding to the same income of ta x-exempted organizations.

Foreign branches in the United States

In most cases, the payment of foreigners to the US branch is paid to the foreigner. However, payments to foreign banks and foreign insurance companies under the US regulations can be considered to be paid to Americans, for this purpose, act as brokerage. Or the financial institution, which is a fund flow company, is treated as a US branch.

Only if the recipient is a foreign entrepreneur, it is subject to withholding in Chapter 4. In Chapter 4, a foreign entry in Chapter 4 means a non-human entry, and includes an regional entity defined in rules 1. 1471-1 (B) (129). The substantial part of our company's revenue must not be used directly, regardless of the USVI, US territory Samoa, Guam, CNMI, or a no n-US resident person.
Foreign private institution.
A private foundation established or organized under foreign law is a foreign private foundation. The total investment income from the US source paid to a no n-granted private Foundation is subject to 4 % (excluding cases exempted by the treaty) instead of a normal legal tax rate of 30 %.
Other foreign organizations, organizations, and charity organizations.
Even organizations established under foreign law may exempt the income tax based on Article 501 (A), and may be exempted from withholding in Chapter 4. In most cases, there is no need to withhold an income payment to such foreign ta x-exempt organizations unless the IRS is a foreign private foundation.
However, payment to these organizations must be reported in the format 1042-s if the withholding of Chapter 3 is not performed without withholding.

Foreign branches in the United States

Only if the recipient is a foreign entrepreneur, it is subject to withholding in Chapter 4. In Chapter 4, a foreign entry in Chapter 4 means a non-human entry, and includes an regional entity defined in rules 1. 1471-1 (B) (129).

If a foreign entity is a no n-participation FFI or passive NFFE and does not submit an appropriate certificate for US real owners, it is eligible for the withholding of Chapter 4. Non-participation FFI refers to FFIs other than participation FFI, FFI, FFI, or FFI, which is considered FFI-Compliant FFI, or FFI, which is exempted from ownership. See the later definitions for the definitions of these terms.

What is passive NFFE?

NFFE other than listed companies,

Continuous related businesses related to listed companies,

Specific ground business

Foreign businesses that submit valid W-8 forms (or evidence alternative to W-8 forms) are exempted from backup withholding and form 1099. .

Excludes FFI.

In Chapter 4, Americans are not included if a foreign insurance company selected based on Article 953 (D) is a specific insurance company and has not obtained a business license in any state. Despite the above, the withholding agent must treat the company as an American to document the status of the company in Chapter 3 and Chapter 4.

In the application of Chapter 3, in most cases, 30%of the total payments paid to foreign beneficiaries must be withholding.

The recipient is American.
The beneficiaries are foreigners and beneficiaries of income, and have the right to reduce the withholding rate by the internal revenue law or applied tax treaty.
See the following for the rules for when the withholding agent can rely on the effective withholding certificate obtained from a thir d-party storage office electronically. See Article 1441-1 (E) (4) (IV) (E).
If the withholding of Chapter 4 is applied for the payment, there is no need for withholding in Chapter 3. If a foreign entry is a no n-participation FFI or passive NFFE and does not submit an appropriate certificate for US real owners, it is eligible for the withholding of Chapter 4. Non-participation FFI refers to FFIs other than participation FFI, FFI, FFI, or FFI, which is considered FFI-Compliant FFI, or FFI, which is exempted from ownership. See the later definitions for the definitions of these terms.
What is passive NFFE?
NFFE other than listed companies,

Continuous related businesses related to listed companies,

Specific ground business

Active NFFE, or

The recipient is American.
In Chapter 4, Americans are not included if a foreign insurance company selected based on Article 953 (D) is a specific insurance company and has not obtained a business license in any state. Despite the above, the withholding agent must treat the company as an American to document the status of the company in Chapter 3 and Chapter 4.
In the application of Chapter 3, in most cases, 30%of the total payments paid to foreign beneficiaries must be withholding.
The recipient is American.
The beneficiaries are foreigners and beneficiaries of income, and have the right to reduce the withholding rate by the internal revenue law or applied tax treaty.
See the following for the rules for when the withholding agent can rely on the effective withholding certificate obtained from a thir d-party storage office electronically. See Article 1441-1 (E) (4) (IV) (E).

If the withholding of Chapter 4 is applied for the payment, there is no need for withholding in Chapter 3. If a foreign entity is a no n-participation FFI or passive NFFE and does not submit an appropriate certificate for US real owners, it is eligible for the withholding of Chapter 4. Non-participation FFI refers to FFIs other than participation FFI, FFI, FFI, or FFI, which is considered FFI-Compliant FFI, or FFI, which is exempted from ownership. See the later definitions for the definitions of these terms.

What is passive NFFE?

NFFE other than listed companies,

Continuous related businesses related to listed companies,

Specific ground business

Nonqualified Intermediary (NQI)

Active NFFE, or

Excludes FFI.
In Chapter 4, Americans are not included if a foreign insurance company selected based on Article 953 (D) is a specific insurance company and has not obtained a business license in any state. Despite the above, the withholding agent must treat the company as an American to document the status of the company in Chapter 3 and Chapter 4.
In the application of Chapter 3, in most cases, 30%of the total payments paid to foreign beneficiaries must be withholding.

The recipient is American.

The beneficiaries are foreigners and beneficiaries of income, and have the right to reduce the withholding rate by the internal revenue law or applied tax treaty.

See the following for the rules for when the withholding agent can rely on the effective withholding certificate obtained from a thir d-party storage office electronically. See Article 1441-1 (E) (4) (IV) (E).

If the withholding of Chapter 4 is applied for the payment, there is no need for withholding in Chapter 3.

If you make a withholdable payment, you must determine the chapter 4 status of the beneficial owner, beneficial owner, intermediary, and entity that receives the payment, to the extent necessary for chapter 4 purposes. You must also determine the chapter 4 status of any person who holds an interest in an entity that receives a withholdable payment that you treat as an owner-documented FFI, provided that you are a U. S. financial institution, participating FFI, or reporting Model 1 FFI. To determine chapter 4 status, you generally must obtain a valid withholding certificate or evidence that can be reliably linked to the payment. If you make a payment to a passive NFFE, you must obtain either a certification that the NFFE has no significant U. S. owners or the name, address, and statute of limitations of each significant U. S. owner of the NFFE (or, under the applicable IGA, each controlling person who is a specified U. S. person). In most cases, you can reliably link a payment to a W-8 form to verify the beneficial owner's chapter 4 status if, before making the payment, you:

obtain a valid form containing the information required for chapter 4 purposes;

reliably determine how the payment relates to the form;

have actual knowledge or reason to know that any information, certification, or statement contained in or related to the form is unreliable or inaccurate for chapter 4 purposes.

See "Knowledge Standard for Chapter 4 Purposes" below for the standards that apply for chapter 4 purposes.

Regarding the requirements for documenting the specific chapter of the individual that receives withholding, the case where the withholding agent can trust the effective withholding slip received electronically from the thir d-party storage station. For the rules, see Regs. 1441-1 (E) (4) (IV) (E). Regarding the range that the withholding obligation person can rely on evidence (other than the form W-8) to determine the status of the beneficiary Chapter 4, the style of evidence is allowed in the status of each chapter 4. See REG. 1. 1471-3 (D) including. See below for the requirements for evidence. If you pay with withholding to the beneficiaries, and if you cannot relate to the payment, valid withholding slip or valid evidence, you must apply the 4th Reviews described later. Not.
You can rely on the same document for both the 3rd and 4th purpose, but that the document is sufficient to meet the requirements of each chapter. For example, you can use the Form W-8ben-E to get both the 3rd and 4th states of the company that provide forms.
In most cases, in order to apply a withholding tax reduction, it is necessary to reliably associate payment and valid documents, and you must obtain documents before paying. The document is not valid if you know that the document is unreliable or inaccurate, or if you have a reason to know. The knowledge standards for the purpose of Chapter 3 and the knowledge standards for Chapter 4 will be described later.
If payment and valid documents cannot be associated with, the withholding rates must be determined using the estimated rules described later. For example, if you do not have a document, or if you cannot determine the payment portion that can be assigned to a specific document, you must use the estimated rule 1441 section.
The specific types of documents are described in this section. However, please refer to the specific formal description described later for specific income withholding. As a withholding agent, please refer to the W-8Ben, W-8Ben-E, W-8ECI, W-8EXP, W-8imy formal instructions.
Article 1446 (A) and (F) withholding. Regs. Regs. Regs. Trust the effective withholding slip received electronically from a thir d-party storage office. For rules for the case where possible, see Regs. 1441-1 (E) (4) (IV) (E). Regarding the range that the withholding obligation person can rely on evidence (other than the form W-8) to determine the status of the beneficiary Chapter 4, the style of evidence is allowed in the status of each chapter 4. See REG. 1. 1471-3 (D) including. See below for the requirements for evidence. If you pay with withholding to the beneficiaries, and if you cannot relate to the payment, valid withholding slip or valid evidence, you must apply the 4th Reviews described later. Not.
You can rely on the same document for both the 3rd and 4th purpose, but that the document is sufficient to meet the requirements of each chapter. For example, you can use the Form W-8ben-E to get both the 3rd and 4th states of the company that provide forms.
In most cases, in order to apply a withholding tax reduction, it is necessary to reliably associate payment and valid documents, and you must obtain documents before paying. The document is not valid if you know that the document is unreliable or inaccurate, or if you have a reason to know. The knowledge standards for the purpose of Chapter 3 and the knowledge standards for Chapter 4 will be described later.
If payment and valid documents cannot be associated with, the withholding rates must be determined using the estimated rules described later. For example, if you do not have a document, or if you cannot determine the payment portion that can be assigned to a specific document, you must use the estimated rule 1441 section.
The specific types of documents are described in this section. However, please refer to the specific formal description described later for specific income withholding. As a withholding agent, please refer to the W-8Ben, W-8Ben-E, W-8ECI, W-8EXP, W-8imy formal instructions.
Article 1446 (A) and (F) withholding. Regarding the requirements for documenting the specific chapter of the individual that receives withholding, the case where the withholding agent can trust the effective withholding slip received electronically from the thir d-party storage station. For the rules, see Regs. 1441-1 (E) (4) (IV) (E). Regarding the range that the withholding obligation person can rely on evidence (other than the form W-8) to determine the status of the beneficiary Chapter 4, the style of evidence is allowed in the status of each chapter 4. See REG. 1. 1471-3 (D) including. See below for the requirements for evidence. If you pay with withholding to the beneficiaries, and if you cannot relate to the payment, valid withholding slip or valid evidence, you must apply the 4th Reviews described later. Not.

You can rely on the same document for both the 3rd and 4th purpose, but that the document is sufficient to meet the requirements of each chapter. For example, you can use the Form W-8ben-E to get both the 3rd and 4th states of the company that provide forms.

In most cases, in order to apply a withholding tax reduction, it is necessary to reliably associate payment and valid documents, and you must obtain documents before paying. The document is not valid if you know that the document is unreliable or inaccurate, or if you have a reason to know. The knowledge standards for the purpose of Chapter 3 and the knowledge standards for Chapter 4 will be described later.

If payment and valid documents cannot be associated with, the withholding rates must be determined using the estimated rules described later. For example, if you do not have a document, or if you cannot determine the payment portion that can be assigned to a specific document, you must use the estimated rule 1441 section.

The specific types of documents are described in this section. However, please refer to the specific formal description described later for specific income withholding. As a withholding agent, please refer to the W-8Ben, W-8Ben-E, W-8ECI, W-8EXP, W-8imy formal instructions.

Article 1446 (A) and (F) withholding.

Under Section 1446(a), a partnership must withhold on ECTI that may be allocated to a foreign partner. For a partnership that is a PTP, the PTP or PTP distributing nominee must withhold on distributions to the foreign partner that are subject to Section 1446(a) withholding. In most cases, the partnership (or nominee, if applicable) will determine whether a partner is a foreign partner and the partner's tax classification based on the withholding certificate submitted by the partner. This certificate is the same as the documentation submitted for Chapter 3 withholding, but may require additional information, as described in each form in this section.

For Section 1446(f), see Section 1446(f) below.

Documentation requirements for joint beneficiaries.

If you are making payments to joint payees (such as joint account holders), you must obtain documentation from each payee. If you make a payment to joint beneficiaries and you cannot reliably associate the payment with documentation from all of the beneficiaries, you should generally consider the payment to have been made to an unknown U. S. person. If the payment is subject to withholding and any of the beneficiaries do not appear to be individuals based on the names or other information on the account records, you should treat the entire amount as a payment to an undocumented foreign person. However, if one of the joint beneficiaries has submitted a W-9 form, you must treat it as having been paid to that beneficiary.

W-9 form.

In most cases, you can treat a beneficiary as a U. S. person if he or she has submitted a W-9 form. The W-9 form may only be used by U. S. persons and must include the beneficiary's tin. U. S. persons are not subject to chapter 3 withholding (or section 1446(a) or (f) withholding), but may be subject to:

Withholding Foreign Partnerships (WPs)

Form 1099 reporting and backup withholding under section 3406,

reporting as a participating FFI or registered FFI's U. S. account holder.

If an FFI cannot report the required information about an account holder, it will classify it as an unaffiliated account holder of a participating or registered FFI under chapter 4 (including chapter 4 withholding).

Form W-8.

In most cases, the foreign beneficial owner of income must file a Form W-8.

If certain requirements are met, foreigners can submit evidence instead of W-8 format for the purpose of Chapter 3 or Chapter 4. The amount paid outside the United States in connection with offshore debt can rely on evidence instead of W-8 format. See "Offshore Debt" described later to see if payment corresponds to such payments.

Withholding Foreign Trusts (WTs)

Limitation of benefits (LOB) provisions in income tax treaties generally prevent third-country residents (unless the treaty contains a derivative benefits provision) and persons without a substantial connection to the treaty country from receiving treaty benefits. For example, a foreign corporation may not be able to receive a reduced withholding rate unless a minimum percentage of its owners are citizens or residents of the United States or a treaty country. A foreign corporation that is a resident of a country that has an LOB provision in its income tax treaty with the United States can receive treaty benefits only if it meets one of the objective tests in the LOB provision or obtains a favorable discretionary decision from the U. S. tax treaty authority.

Exemptions or reduced rates of U. S. tax vary depending on the tax treaty. You should check the applicable tax treaty provisions. See Tax Treaties below for information on how to access tax treaties.

A reduced withholding rate is not available if the owner of the income knows or has reason to know that he or she is not entitled to a treaty benefit or if the United States does not have a tax treaty with the country. However, we are not responsible for any statement on a W-8 form, on a supporting document, or attached to a supporting document that we did not actually know or had reason to know was inaccurate. Some withholding agents, such as financial institutions, have limited reason to know the information necessary for this purpose. See Regulations 1. 1441-7(b) for these requirements.

Exceptions to the Tin Requirement

A foreign person is not required to furnish U. S. or foreign tin in order to claim a reduction in the withholding rate under a tax treaty in chapter 3 if the following exceptions are met:

Unexpected payments to individuals (discussed in the context of U. S. or foreign tin below).

What is passive NFFE?

If a foreign person is required to furnish foreign tin for purposes other than a tax treaty claim, see "U. S. or foreign tin" below.

Continuous related businesses related to listed companies,

A W-8 form submitted to claim tax treaty benefits does not require a U. S. or foreign tin if the foreign beneficial owner is claiming benefits for purposes of Chapter 3 on income from marketable securities. For this purpose, marketable securities income consists of the following:

Dividends and interest from actively traded stocks and debt obligations.

Dividends from redeemable securities issued by investment companies (mutual funds) registered under the Investment Company Act of 1940.

Dividends, interest, or royalties from units of mutual funds registered with the Securities and Exchange Commission and offered to the public (or after issuance) under the Securities Act of 1933.

In the case of a business entity, the income shall be in the meaning prescribed in Article 894. and

Debt obligations.

The recipient is American.
A payment is made outside the United States if the payor completes the transaction necessary to make the payment outside the United States. However, an amount paid from a deposit or account with a bank or other financial institution is generally treated as being paid at the branch or office where the amount was deposited, unless the amount is collected by the financial institution as agent for the payee, if the other requirements of Reg. 6049-5(e)(2) are met with respect to that branch or office.
When a payment is made outside the United States in connection with an offshore indebtedness, the payee may submit evidence, rather than a W-8 form, to prove that the payee is a foreign person. See Regulation 1 § 6049-5(c)(1) for evidence requirements for offshore indebtedness. For accounts opened after July 1, 2014 and before December 31, 2014, the rules on the use of evidence under Regulations 1. 6049-5(c)(1) and (c)(4) prior to the issuance of the temporary regulations may be used.
Other documents may be required to apply for the exemption or reduction of the origin of the source of the source of personal services. Non-assigned foreigners may need to submit W-4 or 8233 forms. These formats will be described later in the "personal services" of "Profty of the Profutable Income".
W-8BEN, W-8Ben-E, W-8ECI, W-8EXP, or in case of evidence, if all appropriate requirements are proven, you can treat beneficiaries as foreign beneficiaries. Masu.
If the beneficial owner submits evidence in lieu of a W-8 form, a reduced withholding rate may be applied to income from securities (described above) paid outside the United States for a third purpose related to the offshore debt. To receive tax treaty benefits, you must have one of the following evidences:

Certificate of Residency:

Specific ground business

and states that the beneficial owner filed a most recent income tax return as a resident of that country.

The recipient is American.
Includes the individual's name, address, and photograph.
Is an official document issued by a government agency. And
Issued more than three years prior to the presentation.
It must contain the name of the business,
and the address of its principal office in the treaty country.
It must be an official document issued by an authorized government agency.

A foreign beneficial owner that is a corporation must submit, in addition to supporting documents, a statement that it is withholding the income for which it claims treaty benefits, that it meets one or more of the conditions set forth in the limitation on benefits article (if any) (or a similar provision) contained in the applicable tax treaty, and that identifies the specific limitations on the provision of benefits. In the case of payments of withholding to a corporation, it must also obtain the appropriate documentation to demonstrate that withholding does not apply under chapter 4.

Form W-8ben.

This form is used by foreign persons to:

Certify their alien status

Claim that they are the beneficial owner of the income for which the form is provided, or a partner in a partnership subject to withholding under section 1446(a), or an assignee of a partnership interest under section 1446(f).

Claim a reduced rate or exemption from withholding under an income tax treaty, if applicable.

Withholding agents may substitute their own form for the individual W-8BEN in some cases.

Standards of Knowledge for Purposes of Chapter 3

Form W-8BEN may also be used by foreign persons to claim exemption from reporting Form 1099 and backup withholding on income not subject to chapter 3 withholding. For example, a foreign person may provide a W-8BEN to a broker when selling securities to certify that the proceeds from the sale are not subject to withholding or backup withholding.

Reason To Know

Dates of birth for certain account holders.

Dates of birth for individual account holders for accounts that are financial accounts (as defined in § 1. 1471-5(b)) must be obtained on the W-8BEN. If the account holder's date of birth is not listed on the W-8BEN form, the form is still valid if the account holder has a date of birth in their account records or you obtain a written statement (including a letter sent by email) from the account holder and link the written statement to the W-8BEN form. See the relevant foreign tin requirements described in Foreign Tin Requirements for Account Holders, which also apply generally with respect to the accounts described in this paragraph.

Form W-8BEN-E.

This form is used by foreign corporations to:

Withholding Certificates

Establish foreign corporation status;

Certify the entity's chapter 4 status to the extent necessary for chapter 4 purposes;
Be a beneficial owner of income for which this form is provided or a partner in a partnership (other than a partnership or grantor trust) that is subject to withholding under section 1446(a) or (f); and
Claim a reduced rate or exemption from chapter 3 withholding under an income tax treaty, if applicable.
Form W-8BEN-E may also be used by foreign entities to claim an exemption from Form 1099 reporting and backup withholding for income not subject to Chapter 3 withholding and not subject to withholding. For example, a foreign entity may submit Form W-8BEN-E to a broker to certify that gross income from the sale of securities is not subject to Form 1099 reporting and backup withholding.

Also, a payee entity may submit Form W-8BEN-E to certify that certain income from fictitious principal contracts is not effectively connected with a trade or business in the United States. In addition, a foreign hybrid entity claiming tax treaty benefits on its own account must submit a W-8BEN-E with respect to the income for which it claims tax treaty benefits. In some cases, a similar consent form may be associated with a payment instead of a W-8BEN-E form.

Form W-8ECI.

This form is used by foreign persons to:

certify that they are foreign persons;

certify that they are foreign persons and claim that they are the beneficial owner of the income for which this form is provided;

claim that the income is effectively connected with a trade or business in the United States; (see "Effectively Connected Income" below);

claim that the individual is a dealer in securities in order to obtain an exemption from withholding under Regulations section 1446(f)-4(b)(6); see Section 1446(f): PTP Interests below.
ECIs for which a valid Form W-8ECI has been filed are generally not subject to chapter 3 or chapter 4 withholding.
If a partnership files this form, income that is effectively connected with a U. S. trade or business is subject to withholding under section 1446. If a partner has made or will make an election under section 871(d) or 882(d), he or she must submit a Form W-8ECI and attach a copy of the election or a statement of intent to elect.
If a partner's PII consists solely of income allocated from the partnership and the partner does not make an election under section 871(d) or 882(d), the partner must submit a W-8BEN or W-8BEN-E to the partnership.
Form W-8EXP.
This form is used by a foreign government, international organization, foreign central issuing bank, foreign tax-exempt organization, foreign private foundation, or U. S. territory government to:

Establish foreign status

Establish the chapter 4 status of the organization to the extent necessary for chapter 4 purposes;

Claim that the person is a beneficial owner of the income for which the form is provided.
Claim that the person is exempt from withholding under chapters 3 and 4 or is a foreign private foundation subject to the 4% tax. See section 1443 for required withholding on payments to such entities.
If the government or entity listed on the form is a partner in a partnership conducting a trade or business in the United States, the ECTI allocated to the partner is subject to withholding under section 1446.
Payments made to a chapter 3 and 4, WP, WT, or branch treated as a U. S. person (see above, Branch of a Foreign Bank and Foreign Bank Branch of a U. S. Insurance Company) to a foreign intermediary or foreign flow-through entity that is not a QI subject to chapter 3 and 4, WP, WT, or branch treated as a U. S. person withholding liability will be treated as the beneficial owner for which the intermediary or entity is acting. Branches of foreign banks and foreign bank branches of U. S. insurance companies (see above) are treated as beneficial owners acting on behalf of the intermediary or entity, unless the intermediary or flow-through entity is subject to chapter 4 withholding. See Flow Entities and Foreign Intermediaries (see above). The W-8IMY form submitted by a foreign intermediary or flow entity must be accompanied by additional information to ensure that the payment is linked to the payee. The additional information required varies depending on the type of intermediary or flow entity and the extent of its withholding liability.

Form W-8IMY.
This form is used by foreign intermediaries and foreign flow-through entities, and certain U. S. branches, for purposes of chapter 3 or 4, or section 1446(a) or (f), as applicable:

State that the foreign person is a QI or NQI.

Prepare the entity's chapter 4 statement, if required for chapter 4 purposes.

If applicable, certify that the entity is a participating FFI, a registered FFI deemed to be in compliance, or a QI that can provide a withholding statement that allocates payments to a U. S. chapter 4 withholding group.
If applicable, state that the QI has primary withholding responsibility for chapter 3 and chapter 4 withholding and/or primary reporting and backup withholding responsibility for Form 1099.
State that the foreign partnership or foreign simple entity or pass-through entity is a foreign withholding corporation or foreign withholding corporation.
State that the foreign flow-through entity is a non-withholding foreign partnership or non-withholding foreign trust.

Expass that the provider is a US branch of foreign banks or insurance companies, and send documents for those who agree to be treated as Americans or pay.

Expassing the status as a qualified securities loaner regarding the payment of US withholding dividends for dividends;

Expass the status as Qi to act as QDD for specific payments. And
In the application of Article 1446, he states that it is an advanced partnership or foreign trust, and states that this format is used to send the required documents. For information to be recognized as an advanced partnership, see Rule 1. 1446-5.

In the application of Chapter 4, the intermediate or fros t-roux company, which is a participating FFI or registration correction FFI, will, instead of submitting documents for each payment destination, will be submitted at a later date. As described in the collection, you can submit comprehensive distribution information.
FFI withholding slip.
The FFI withholding calculation document selected the withholding of Chapter 4, as described in the NQI, no n-recourse foreign partnership, foreign no n-trust, or qualified intermediaries (Qi) described later. Qi does not undertake the withholding tax in Chapter or Chapter 4).
FFI withholding slip can include either beneficiary or aggregate information. If the withholding slip contains the information aggregated, the withholding slip shall show the consumed part of the payment:

Chapter 4 of the US beneficiary Chapter 4 Spring Group,

Each class of recreational accounts based on the provisions of Article 1471-4 (d) (6), or a single pool of Qi, or

Documentary Evidence

No n-participation FFI category.

If the withholding slip contains information of a specific recipient, both the payment part assigned to each payment person and the status of Chapter 4 of the recipient will be displayed. I have to.
Regarding accounts, the withholding record provided by FFI other than FFI, which acts as WP, WT, or Qi, is the fourth in the business body in the case of a mixture or business body that receives the payment. The position of the chapter and GIIN must also be revealed. Expass that the provider is a US branch of a foreign bank or insurance company, and sends a document of a person who agrees to be treated as an American.
Expassing the status as a qualified securities loaner regarding the payment of US withholding dividends for dividends;

Expass the status as Qi to act as QDD for specific payments. And

In the application of Article 1446, he states that it is an advanced partnership or foreign trust, and states that this format is used to send the required documents. For information to be recognized as an advanced partnership, see Rule 1. 1446-5.

In the application of Chapter 4, the intermediate or fros t-roux company, which is a participating FFI or registration correction FFI, will, instead of submitting documents for each payment destination, will be submitted at a later date. As described in the collection, you can submit comprehensive distribution information.
FFI withholding slip.
The FFI withholding calculation document has selected the withholding of Chapter 4, as described in the NQI, no n-recourse foreign partnership, foreign no n-trust, or qualified intermediaries (Qi) described later. Qi does not undertake the withholding tax in Chapter or Chapter 4).
FFI withholding slip can include either beneficiary or aggregate information. If the withholding slip contains the information aggregated, the withholding slip shall show the consumed part of the payment:

Chapter 4 of US beneficiary Chapter 4 Spring Group,

Each class of recreational accounts based on the provisions of Article 1471-4 (d) (6), or a single pool of Qi, or

No n-participation FFI category.
If the withholding slip contains information of a specific recipient, both the payment part assigned to each payment person and the status of Chapter 4 of the recipient will be displayed. I have to.
Regarding accounts, the withholding record provided by FFI other than FFI, which acts as WP, WT, or Qi, is the fourth in the business body in the case of a mixture or business body that receives the payment. The position of the chapter and GIIN must also be revealed. Expass that the provider is a US branch of foreign banks or insurance companies, and send documents for those who agree to be treated as Americans or pay.

Expassing the status as a qualified securities loaner regarding the payment of US withholding dividends for dividends;
Expass the status as Qi to act as QDD for specific payments. And
In the application of Article 1446, he states that it is an advanced partnership or foreign trust, and states that this format is used to send the required documents. For information to be recognized as an advanced partnership, see Rule 1. 1446-5.

In the application of Chapter 4, the intermediate or fros t-roux company, which is a participating FFI or registration correction FFI, will, instead of submitting documents for each payment destination, will be submitted at a later date. As described in the collection, you can submit comprehensive distribution information.

FFI withholding slip.

The FFI withholding calculation document selected the withholding of Chapter 4, as described in the NQI, no n-recourse foreign partnership, foreign no n-trust, or qualified intermediaries (Qi) described later. Qi does not undertake the withholding tax in Chapter or Chapter 4).
FFI withholding slip can include either beneficiary or aggregate information. If the withholding slip contains the information aggregated, the withholding slip shall show the consumed part of the payment:
Chapter 4 of the US beneficiary Chapter 4 Spring Group,

Each class of recreational accounts based on the provisions of Article 1471-4 (d) (6), or a single pool of Qi, or

No n-participation FFI category.

If the withholding slip contains information of a specific recipient, both the payment part assigned to each payment person and the status of Chapter 4 of the recipient will be displayed. I have to.
Regarding accounts, the withholding record provided by FFI other than FFI, which acts as WP, WT, or Qi, is the fourth in the business body in the case of a mixture or business body that receives the payment. The position of the chapter and GIIN must also be revealed.
For additional information on the requirements of FFI withholding tax statutory, see Article 1. 1471-3 (C) (3) (III) (B) (2).

Indirect Account Holders' Chapter 3 Status

Chapter 4 Gen Gen Izumi Collection Moder

The recipient is American.

Financial institutions in areas that do not agree to be treated as Americans.

A US branch that is not a US branch of participation FFI.

NQI, foreign no n-continuous partnership, foreign no n-continuous trust or deemed conformity certified FFI.

The following must be described in the withholding slip in Chapter 4.

The names, addresses, TIN (if any), the status of Chapter 4.

Effective withholding certificate or other appropriate documents to prove Chapter 4 of each intermediate company or fros t-through company paid on behalf of the recipient and the recipient.

Standards of Knowledge for Purposes of Chapter 4

Other information that is rationally demanded by withholding officers to fulfill the obligations based on Chapter 4.

Notification by the IRS

The withholding slip with capital 4 is allowed to provide total distribution information about the recipient treated as no n-participation FFI.

GIIN Verification

The W-8 style must include a US TIN because it is an effective partner for applying for exemption or reduction of withholding of withholding based on Article 1446 (A) or (F). See the description of the corresponding W-8 style. For additional information on the requirements for the FFI withholding statement, see Article 1. 1471-3 (C) (3) (III) (2) (2).

Chapter 4 Gen Gen Izumi Collection Moder
Chapter 4 The General Spring Tax Tax Declaration must be submitted as follows.
Financial institutions in areas that do not agree to be treated as Americans.
A US branch that is not a US branch of participation FFI.
NQI, foreign no n-continuous partnership, foreign no n-continuous trust or deemed conformity certified FFI.
The following must be described in the withholding slip in Chapter 4.

The names, addresses, TIN (if any), the status of Chapter 4.

The amount assigned to each recipient.

Effective withholding certificate or other appropriate documents to prove Chapter 4 of each intermediate company or fros t-through company paid on behalf of the recipient and the recipient.

Other information that is rationally demanded by withholding officers to fulfill the obligations based on Chapter 4.

The withholding slip with capital 4 is allowed to provide total distribution information about the recipient treated as no n-participation FFI.

The W-8 style must include a US TIN because it is an effective partner for applying for exemption or reduction of withholding of withholding based on Article 1446 (A) or (F). See the description of the corresponding W-8 style. For additional information on the requirements for the . FFI withholding statement, see Article 1. 1471-3 (C) (3) (III) (B) (2).

Chapter 4 Gen Gen Izumi Collection Moder

Chapter 4 The General Spring Tax Tax Declaration must be submitted as follows.

Financial institutions in areas that do not agree to be treated as Americans.

A US branch that is not a US branch of participation FFI.

Reason To Know

NQI, foreign no n-continuous partnership, foreign no n-continuous trust or deemed conformity certified FFI.

The following must be described in the withholding slip in Chapter 4.

Withholding Certificates

The names, addresses, TIN (if any), the status of Chapter 4.

The amount assigned to each recipient.
Effective withholding certificate or other appropriate documents to prove Chapter 4 of each intermediate company or fros t-through company paid on behalf of the recipient and the recipient.
Other information that is rationally demanded by withholding officers to fulfill the obligations based on Chapter 4.
The withholding slip with capital 4 is allowed to provide total distribution information about the recipient treated as no n-participation FFI.
The W-8 style must include a US TIN because it is an effective partner for applying for exemption or reduction of withholding of withholding based on Article 1446 (A) or (F). See the description of the corresponding W-8 style. .

In most cases, Qi concludes the withholding and reports required in Chapter 3 and Chapter 4, as well as the report to the form 1099 based on Article 3406 and the withholding with the IRS (above). It refers to the foreign intermediaries, and since January 1, 2023, Qi will distribute PTP (including withholding in Article 1446 (A)) and Article 1446 (F) (F) and Article 1446 (F). ) It is possible to take a certain withholding responsibility for the transfer of the PTP equity based on). See below for these provisions. Foreign businesses that act as QDD, or foreign companies that act in connection with agent and interest payment (recognized by Qi contracts), act as Qi without being paid as an intermediary. can. Foreign entities who have obtained the Qi employer identification number (Qi-Ein) can report that the foam W-8imy is Qi. Qi can claim that it is Qi until IRS is canceled.

Qi is either FFI or NFFE. The Qi FFI is a participating FFI (including model 2 report FFI), a deemed compliance registration FFI (model 2 report FFI and model 2, a model 2, which is treated as FFI), or applied models 1 IGA FFI, which is treated as a deemed compliance registration FFI based on, must be FFIs that follow the same dudidritability and report requirements for H. P. A. accounts. Therefore, if a record of Chapter 4 is required for the purpose of Chapter 4, it is proof that FFI's Qi is one of the records of Chapter 4 in the pre-style W-8imy. By doing, you must identify the status of Chapter 4 of FFI.

Documentary Evidence

Responsibility and document for Chapter 3 and Chapter 4. In most cases, Qi is the withholding and reports required in Chapter 3 and Chapter 4, as well as the IRS with IRS (afected) for reporting to the form 1099 based on Article 3406. Refers to foreign intermediaries that are concluded, Qi after January 1, 2023, when acting as an intermediary, PTP distribution (including withholding with Article 1446 (A)) and 1446 It is possible to take a certain withholding liability for the transfer of the PTP equity based on Article (F). See below for these provisions. Foreign businesses that act as QDD, or foreign companies that act in connection with agent and interest payment (recognized by Qi contracts), act as Qi without being paid as an intermediary. can. Foreign entities who have obtained the Qi employer identification number (Qi-Ein) can report that the foam W-8imy is Qi. Qi can claim that it is Qi until IRS is canceled.

Qi is either FFI or NFFE. The Qi FFI is a participating FFI (including model 2 report FFI), a deemed compliance registration FFI (model 2 report FFI and model 2, a model 2, which is treated as FFI), or applied models 1 IGA FFI, which is treated as a deemed compliance registration FFI based on, must be FFIs that follow the same dudidritability and report requirements for H. P. A. accounts. Therefore, if a record of Chapter 4 is required for the purpose of Chapter 4, it is proof that FFI's Qi is one of the records of Chapter 4 in the pre-style W-8imy. By doing, you must identify the status of Chapter 4 of FFI.
Responsibility and document for Chapter 3 and Chapter 4. In most cases, Qi concludes the withholding and reports required in Chapter 3 and Chapter 4, as well as the report to the form 1099 based on Article 3406 and the withholding with the IRS (above). It refers to the foreign intermediaries, and since January 1, 2023, Qi will distribute PTP (including withholding in Article 1446 (A)) and Article 1446 (F) (F) and Article 1446 (F). ) It is possible to take a certain withholding responsibility for the transfer of the PTP equity based on). See below for these provisions. Foreign businesses that act as QDD, or foreign companies that act in connection with agent and interest payment (recognized by Qi contracts), act as Qi without being paid as an intermediary. can. Foreign entities who have obtained the Qi employer identification number (Qi-Ein) can report that the foam W-8imy is Qi. Qi can claim that it is Qi until IRS is canceled.
Qi is either FFI or NFFE. The Qi FFI is a participating FFI (including model 2 report FFI), a deemed compliance registration FFI (model 2 report FFI and model 2, a model 2, which is treated as FFI), or applied models 1 IGA FFI, which is treated as a deemed compliance registration FFI based on, must be FFIs that follow the same dudidritability and report requirements for H. P. A. accounts. Therefore, if a record of Chapter 4 is required for the purpose of Chapter 4, it is proof that FFI's Qi is one of the records of Chapter 4 in the pre-style W-8imy. By doing, you must identify the status of Chapter 4 of FFI.
Responsibility and document for Chapter 3 and Chapter 4.

Payments made to a QI for which it is not responsible for withholding are treated as payments to an account holder. However, the QI is not required to submit documentation received from a foreign account holder or U. S. exempt payee (U. S. persons are exempt from filing Form 1099) and instead submits a withholding slip that includes the chapter 3 or chapter 4 withholding group information. A chapter 4 withholding group is a single type of income payment (within a single pool) that is a withholding payment allocated to a nonparticipating FFI or a nonparticipating account holder beneficial owner. A chapter 4 withholding pool is a single type of income payment that is allocated to a U. S. beneficial owner if the QI submits the certification and withholding slip required on Form W-8imy to allocate the payment to that pool. A QI may include in its chapter 4 withholding its interest payments, those of its direct account holders, other QIs, or account holders of participating or registered FFIs. For payments to foreign persons for which chapter 4 withholding is not required, a chapter 3 withholding group is a single type of income payment that is subject to a single source of withholding.

Payee Documentation From Intermediaries or Flow-Through Entities

A QI must provide information about its U. S. payees (U. S. persons subject to Form 1099 information reporting) and separately provide withholding interest information for each U. S. person that meets the requirements to include such payees in a U. S. payment pool. See the instructions for Form W-8imy for alternative procedures for providing withholding information for persons not included in a U. S. chapter 4 withholding group.

Indications on the Withholding Slip

The recipient is American.

Designate the accounts that are subject to chapter 3 and chapter 4 withholding obligations, and/or Form 1099 reporting obligations, backup obligations.

NQI, foreign no n-continuous partnership, foreign no n-continuous trust or deemed conformity certified FFI.

Identify accounts acting as QDDs, if applicable.

If the QI does not have primary chapter 3 or chapter 4 withholding responsibility, provide sufficient information to allocate the payment to chapter 3 withholding interest groups, as applicable, and, for payments that are withholding payments, to chapter 4 withholding interest groups of nonparticipating FFIs and nonparticipating account holders; and

Provide sufficient information to allocate the payment to each exempt U. S. payee or group of U. S. payees, within the limits set forth above in this title.

The extent to which information about all withholding rates must be available depends on the withholding and reporting obligations assumed by the QI. If a QI authorized by a QI agreement receives evidence in accordance with the "KYC" rules applicable to the QI under local law and the evidence is of a type specified in an attachment to the QI agreement, the evidence is valid until there is a change in circumstances or the QI learns that the information is incorrect. The QI may rely on a W-8 form until it expires under Regulation 1. 1441-1(e)(4)(ii) and may rely on evidence not received in accordance with the "KYC" rules until it expires under Regulation 1. 6049-5(c).

Master Chapters 3 and 4 have no withholding liability.

Presumption Rules

If Qi does not have the main withholding responsibility of Chapter 3 and Chapter 4, or if the main report of the main report or backup form 1099 is not responsible for payment, it is associated with the withholding rate of foreign and US recipients. Payments can be associated with valid documents only as far as the payment part can be identified. Qi must be reported to form 1099 unless the alternative procedure is applied and the ta x-exempt US recipient is allowed to be included in the withholding rate group in Chapter 4 to the US Recipient. For each domestic recipient, you must provide you with an individual withholding rate group. If Qi agreed, Qi is an alternative procedure for ta x-exempted US recipients, and a single withholding rate pool (for backup withholding tax (backup withholding tax It can be implemented by setting outside). Qi needs to report in form 1099, an American who provided the form W-9 before the reported payment, or if the backup withholding tax is not applied. Qi must provide form W-9. If there is no form, you must provide the name, address, and Tin (if any) of the tax exempt recipient outside the United States.

Chapter 3 and Chapter 4 are obligatory.

When paying for Qi, which undertakes the withholding responsibility for the withholding chapter 3 and Chapter 4 (but not deduction of the main report and the withholding slip 1099), the payment is in Chapter 4 The payment can be associated with valid documents only within the range that can be identified as far as the withholding interest group group and the withholding interest group in Chapter 3 can be identified, however This is not the case if the alternative procedure for collecting reports is applied. Qi must submit a W-9 form, or if there is no W-9 form, you must submit your personal name, address, and Tin (if any).

We are responsible for the withholding of the basic Chapter 3 and Chapter 4, the report of form 1099 and backup withholding tax. If Qi does not have the main withholding responsibility of Chapter 3 and Chapter 4, or the main report of the main report or backup form 1099, each group of withholding rate for foreign and US recipients Payments can be associated with valid documents only as far as possible to identify the associated portions. Qi must be reported to form 1099 unless the alternative procedure is applied and the ta x-exempt US recipient is allowed to be included in the withholding rate group in Chapter 4 to the US Recipient. For each domestic recipient, you must provide you with an individual withholding rate group. If Qi agreed, Qi is an alternative procedure for ta x-exempted US recipients, and a single withholding rate pool (for backup withholding tax (backup withholding tax It can be implemented by setting outside). Qi needs to report in form 1099, an American who provided the form W-9 before the reported payment, or if the backup withholding tax is not applied. Qi must provide form W-9. If there is no form, you must provide the name, address, and TIN (if any) of the tax exempt recipient outside the United States.

Chapter 3 and Chapter 4 are obligatory.

We are responsible for the withholding of the basic Chapter 3 and Chapter 4, the report of form 1099 and backup withholding tax. If Qi does not have the main withholding responsibility of Chapter 3 and Chapter 4, or if the main report of the main report or backup form 1099 is not responsible for payment, it is associated with the withholding rate of foreign and US recipients. Payments can be associated with valid documents only as far as the payment part can be identified. Qi must be reported to form 1099 unless the alternative procedure is applied and the ta x-exempt US recipient is allowed to be included in the withholding rate group in Chapter 4 to the US Recipient. For each domestic recipient, you must provide you with an individual withholding rate group. If Qi agreed, Qi is an alternative procedure for ta x-exempted US recipients, and a single withholding rate pool (for backup withholding tax (backup withholding tax It can be implemented by setting outside). Qi needs to report in form 1099, an American who provided the form W-9 before the reported payment, or if the backup withholding tax is not applied. Qi must provide form W-9. If there is no form, you must provide the name, address, and Tin (if any) of the tax exempt recipient outside the United States.	Chapter 3 and Chapter 4 are obligatory.
When paying for Qi, which undertakes the withholding responsibility of the main chapters 3 and Chapter 4 (but not deduction of the main report and the withholding slip 1099), the payment is in Chapter 4. The payment can be associated with valid documents only within the range that can be identified as far as the withholding interest group group and the withholding interest group in Chapter 3 can be identified, however This is not the case if the alternative procedure for collecting reports is applied. Qi must submit a W-9 form, or if there is no W-9 form, you must submit your personal name, address, and Tin (if any).	We are responsible for the withholding of the basic Chapter 3 and Chapter 4, the report of form 1099 and backup withholding tax.
If you pay for Qi, which is assumed to be backup of the 1099 form, the 1099 form, and the backup of the withholding tax with Chapter 4 It can be associated with the none documents. There is no need to associate with the withholding group in Chapter 3 or Chapter 4.	If you pay QDD, Qi, even if you are responsible for the primary suppleness collection for all payments, you will act as QDD unless you act as QDD for all payments received by Qi. You must submit a withholding statement that identifies your account.
example	Pay Qi the dividend of the US source. The two are foreigners and have submitted documents that apply 15%withholding rate to dividends. The two are foreigners who have a 30 % withholding rate to dividends. And one is an American who has submitted the W-9 form. Each customer has the right to receive 20 % of dividends. Qi is not responsible for primary withholding. Qi is a withholding statement that assigns a form W-9 attached to a form W-8 and a 15 % withholding rate of 40 % of the dividend, a 30 % withholding pool, and 20 % to Americans. Give the book. Forms 1042-s must be filed with 40%of the dividend at a 15%withholding rate, and 40%must be filed with a withholding rate of 30%. The part (20 %) that may be allocated to Americans must be reported in form 1099-div.
Chapter 3 and Chapter 4 Common account processing	Qi can apply a joint account processing when partnership or trust meets the following conditions:
An unproofed foreign partnership or a no n-updated foreign trust that is a simple trust or trustee trust.	In the official FFI that is deemed to be FFI, the registered model 1 IGA FFI), the FFI documented by the owner in connection with the Qi, the exemption from the beneficiary, the applicable IGA attached II, or the rules of Article 1 It is an NFFE or target account excluded from the definition of a financial account. It is 1471-5 (a), and has submitted a certificate to Qi to maintain the position of Chapter 4 during each authentication period.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

The standard rate of tax withholding for a Nonresident Alien is 30%, but there are several exceptions: Income excluded as foreign source under Internal Revenue. Internal Revenue Service (IRS) For more guidance, please read Publication , Withholding of Tax on Nonresident Aliens and Foreign Entities. With respect to taxes withheld at source, the treaty ceases to have effect on January 1, In re- spect of other taxes, the treaty ceases to.

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