Page 22 - Withholding Taxes for Foreign Entities

10:50 - 14-Feb-2020
Page 20 of 55
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
2. The mailing address is not in the treaty the case of an entity claiming treaty bene- information exchange agreement or
country and: fits. income tax treaty in effect with the
a. You possess or obtain documentary Establishment of foreign status. You have United States.
evidence described in Regulations reason to know that documentary evidence is 2. The mailing or residence address or sole
section 1.1471-3(c)(5)(i) (that does unreliable or incorrect to establish a direct ac- telephone number is in the United States,
not contain an address outside the count holder's status as a foreign person if any you receive the documentary evidence
treaty country) supporting the benefi- of the following apply. from an entity (other than a flow-through
cial owner's claim of residence in the entity), and:
treaty country, • For documentary evidence received prior a. You possess or obtain documentation
to January 1, 2001, if you have actual
b. You possess or obtain documentation knowledge that the account holder is a to substantiate that the entity is ac-
that establishes that the beneficial U.S. person or if you have a mailing or resi- tually organized or created under the
owner is an entity organized in a dence address for the account holder in laws of a foreign country;
treaty country, the United States. b. You obtain a valid Form W-8 that con-
c. You know that the address outside • For documentary evidence received after tains a permanent residence address
December 31, 2000, if you do not have a
the treaty country is a branch of the permanent residence address for the ac- and mailing address outside the Uni-
account holder that is a resident of the count holder, if you have classified the ac- ted States (or, if a mailing address is
treaty country, or count holder as a U.S. person in your ac- inside the United States, the account
d. You obtain a written statement from count information, if you have a current holder provides a reasonable explan-
ation in writing supporting the account
the beneficial owner that reasonably mailing or current permanent residence
establishes its entitlement to treaty address (whether or not on the documen- holder’s foreign status); or
benefits. tation) for the account holder in the United c. For a payment made with respect to
3. You have instructions to pay amounts out- States, if the account holder notifies you of an offshore obligation, if you classify
a new residence or mailing address in the
the entity as a resident of the country
side the treaty country and the account United States, or if you have a current tele- where the obligation is maintained
holder gives you a reasonable explana- phone number for the account holder in the and you are required to report a pay-
tion, in writing, establishing residence in United States and no telephone number ment made to the entity annually on a
the applicable treaty country or you pos- for the account holder outside the United tax information statement filed with
sess or obtain documentary evidence de- States. that country’s tax authority as part of
scribed in Regulations section 1.1471-3(c) • If the account holder is an individual and the resident reporting requirements,
(5)(i) establishing the account holder’s you have, either on the documentary evi- and that country has a tax information
residence in the treaty country. dence or as part of your account informa- exchange agreement or income tax
Hold mail instruction. An address that is pro- tion, an unambiguous place of birth for the treaty in effect with the United States.
individual in the United States.
vided subject to an instruction to hold all mail to • With respect to an offshore obligation, the 3. You have instructions to pay amounts to
that address is not a permanent residence ad- account holder has standing instructions an address or an account in the United
dress such that you may not rely upon the Form directing you to pay amounts from the ac- States and the account holder provides
W-8. However, the address can be used as a count to an address or account maintained you with a reasonable explanation, in writ-
permanent residence address if the person has in the United States. ing, that supports the account holder's for-
provided you with documentary evidence that is eign status or a valid beneficial owner
permitted under Regulations section You may, however, rely on documentary evi- withholding certificate claiming foreign sta-
1.1441-1(c)(38)(ii). If, after a Form W-8 is provi- dence as establishing an account holder's for- tus.
ded, a person’s permanent residence address eign status if any of the following apply. 4. You have an unambiguous place of birth in
is subsequently subject to a hold mail instruc- 1. The mailing or residence address or sole
tion, this is a change in circumstances requiring telephone number is in the United States, the United States for an individual account
holder and you possess or obtain docu-
the person to provide the documentary evi- you receive the documentary evidence
dence described in the preceding sentence in from an individual, and: mentary evidence demonstrating the indi-
vidual’s citizenship in a country other than
order to use the address as a permanent resi-
dence address. a. You possess or obtain additional the United States and a copy of the indi-
documentary evidence (that does not vidual’s Certificate of Loss of Nationality of
the United States. Alternatively, you may
Documentary Evidence contain a U.S. address) supporting treat such an individual as a foreign per-
the claim of foreign status and a rea- son if you obtain a valid beneficial owner
You have reason to know that documentary evi- sonable explanation in writing sup- withholding certificate that establishes the
dence provided by a direct account holder to porting the account holder's foreign individual’s foreign status, documentary
support a claim of foreign status is unreliable or status; evidence evidencing citizenship in a coun-
incorrect if: b. You obtain a Form W-8 that contains try other than the United States, and a rea-
• The documentary evidence does not rea- a permanent residence address and sonable explanation in writing of the indi-
sonably establish the identity of the person mailing address outside the United vidual’s renunciation of U.S. citizenship
presenting the documentary evidence; States (or, if a mailing address is in- (or, under an applicable IGA, the reason
• The documentary evidence contains infor- side the United States, the account the individual does not have a Certificate
mation that is inconsistent with the account holder provides a reasonable explan- of Loss of Nationality of the United States
holder's claim of a reduced rate of with- ation in writing supporting the account despite relinquishing U.S. citizenship) or
holding; or holder’s foreign status); or the reason the individual did not obtain
• You have account information that is in- U.S. citizenship at birth.
consistent with the account holder's claim c. For a payment made with respect to
of a reduced rate of withholding, or the an offshore obligation, if you classify Claim of reduced rate of withholding under
documentary evidence lacks information the individual as a resident of the treaty. You have reason to know that docu-
necessary to establish a reduced rate of country where the obligation is main- mentary evidence provided by a direct account
withholding. For example, the documen- tained, you are required to report a holder to claim a reduced rate of withholding
tary evidence does not contain, or is not payment made to the individual annu-
supplemented by, statements regarding ally on a tax information statement
the derivation of the income or compliance filed with that country’s tax authority
with limitations on benefits provisions in as part of the resident reporting re-
quirements, and that country has a tax
Page 20 Publication 515 (2020)