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  Tax Information and Reporting ~ Non-US Person or Entity ~ Initial Data & Data Collection

 

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Initial Data & Data Collection

All non-US persons and entities are required to complete IRS Form W-8 to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding when opening an account. Forms W-8 are not provided to the IRS.

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W-8

W-8BEN

W-8IMY

 


Form W-8BEN

 

Valid Form W-8 


 

 

Forms W-8 must be resubmitted every three years unless you have or apply for a US Taxpayer ID (ITIN or EIN) and provide the number on your Form W-8, in which case there is no need to resubmit.

Generally, tax is withheld at a rate of 30% on payments of US source stock dividends and substitute payments in lieu. The rate of withholding may be reduced if there is a tax treaty between your country of tax residence and the US.

 

 

Updating Form W-8

Forms W-8 are valid for the year in which they are signed and for the next three calendar years. For example, a Form W-8BEN signed on March 5, 2010, remains valid through December 31, 2013, and must be resubmitted to PT no later than January 30, 2014.

Please Note: PT will send you an email when you are required to resubmit your Form W-8.

 

 

Requirement to Complete Form W-8

Form W-8, Certificate of Foreign Status, must be on file with PT. This form must be renewed every three years. If the form W-8 is no longer valid, PT will assume that you are a non-US person and withhold US tax at 30% on interest, dividends, and payments and lieu. Treaty rates, if applicable will no longer apply.

Please Note:  If you complete Form W-8 you will not receive a Consolidated Form 1099, but you may receive Form 1042S.

 

 

Withholding Penalty

If you fail to provide a Form W-8, or do not resubmit a new W-8 when prompted upon the three-year expiration, additional withholding will apply. PT encourages its customers to consult with their tax advisors for further guidance on how to seek relief for any tax withheld.

Refer to the information below for the specific type of W-8 you should complete and how long your Form W-8 is valid from the date signed.

Tax Information and Reporting ~ Non-US Person or Entity ~ Initial Data & Data Collection

 

Form W-8BEN

Form W-8BEN

 

Click here for a sample Form W8-BEN


  

 

Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

 
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, allows you to certify that you are a not a US person and claim treaty benefits under an existing tax treaty between the US and your country of tax residence, if applicable.

 

You should complete Form W-8BEN if:

    • You are opening an individual or joint account and are not a US Citizen, Green Card holder or legal resident of the US.
    • You are the representative of an entity that is not organized in the US but is recognized as a corporation under US law. Refer to a list of entities considered to be per se corporations.
    • You represent a foreign entity and you have made an election on IRS Form 8832 to be treated as a corporation for US tax purposes.
    • You are a foreign tax-exempt organization or foreign private foundation that is not a recognized US charity.
    • You are the trustee of a complex trust as defined under US law.
    • You are the representative of an estate.

 

Part I:  Identifies the name, location and the beneficial owner, which for purposes of Forms W-8, is the owner of the account.

Part II:  In this section, you must certify your country of tax residence or incorporation in order to claim tax treaty benefits, if you are the resident of a treaty country.

 

 

How Long Is Form W-8BEN Valid?

A W-8BEN completed without a US taxpayer identification number is in effect beginning on the date signed until the last day of the third succeeding calendar year, in general, three years. If a change in circumstances causes any information on the form to be incorrect, this will render the form invalid. Towards the end of the three-year period, you will receive an email request to resubmit your W-8BEN form.

You are not required to resubmit Form W-8BEN if you have a US taxpayer ID or ITIN and provided the number on the form.

 

Tax Information and Reporting ~ Non-US Person or Entity ~ Initial Data & Data Collection

 
 
Form W-8IMY

 

Form W-8IMY


Click here for a sample Form W-8IMY


 

Certificate of Foreign Intermediary, Foreign Flow-Through Entity or Certain U.S. Branches for United States Tax Withholding

 

You should complete Form W-8IMY if:

  • You represent a broker opening an account for your customers.
  • You will be asked to complete this form for your relationship with your customers and the appropriate W-8 form for each of your customers.

Additionally, you will also be asked to complete the appropriate form for your master account representing your business entity type.

  • You represent a non-withholding partnership as defined under US law. As a partnership, the entity you represent does not pay taxes directly but the owners (partners) pay all tax liabilities.

In addition to completing Form W-8IMY, you will be asked to complete an appropriate tax registration form (W-8 or W-9) for each of your partners.

  • If you are the trustee of a simple, non-grantor trust. A simple trust pays all income to the beneficiaries annually and the beneficiaries of the trust are not the same person who placed the income in trust. If the owner of income paid to a foreign complex trust is the trust itself, then you should complete Form W-8BEN.

In addition to completing Form W-8IMY, you will be asked to complete an appropriate tax registration form (W-8 or W-9) for each trust beneficiary.

  • You are a withholding foreign partnership or Qualified Intermediary (QI). The form indicates that you are not the owner of the taxable payments.

Part I:  Identifies the name, type of entity and permanent residence of the foreign intermediary, foreign partnership or US Branch.

Part II:  Is completed by all Qualified Intermediaries and a QI-EIN must be provided on line 6.

Part III:  Must be completed by all non-Qualified Intermediaries.

Part V:  Requires the withholding foreign partnership or withholding foreign trust to complete this section. In addition, a US taxpayer ID must be provided on Line 6.

Part VI:  Is completed by the non-withholding foreign partnership, simple trust or grantor trust. In addition, the partnership or trust must provide the required documents and a withholding statement for each beneficial owner it represents.

 

Qualified Intermediary Documentation

 

A Qualified Intermediary completes Form W-8IMY to certify its status as a QI and that it will provide a withholding statement. A QI must include its QI-EIN on W-8IMY, and provide PT with a copy of the IRS letter granting QI status. A QI is not required to provide PT with documentation it receives from foreign account holders. Non-withholding QIs instead must provide a statement that contains withholding rate pool information for US persons subject to Form 1099 and non-US persons subject to 1042-S reporting requirements.

 
 

How Long Is Form W-8IMY Valid?

 

Form W-8IMY will remain in effect until a change in circumstances makes any information on the form incorrect which will render the form invalid. A W-8IMY completed without a US taxpayer identification number, is valid beginning on the date signed until the last day of the third succeeding calendar year, in general, three years. You are not required to update Form W-8IMY if you have provided a US Taxpayer ID, ITIN or QI-EIN on the form. The underlying Forms W-8BEN, are also in effect beginning on the date signed until the last day of the third succeeding calendar year, or three years.

 
 
IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.

Call us today at 1-800-50- PLACE or 1-919-719-7200 for more information, or if you are simply frustrated with your current firm's 1099 issues or if you are simply searching for an investing partner who has your best interests in mind.

 

View the IRS official guide to Withholding of Tax on Nonresident Aliens and Foreign Entities (Publication 515: 2017) via this link.

Tax Information and Reporting ~ Non-US Person or Entity ~ Initial Data & Data Collection

 

Tax Information and Reporting ~ Non-US Person or Entity

Initial Application & Data Collection

Year-end Tax Forms

Year-end Reports

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