The IRS has published draft versions of its revised Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting, and instructions for filers of this form.
There are a number of significant updates to this form of which filers should be aware:
- Qualified Derivatives Dealers (QDDs): A QDD that is entitled to a reduced rate of withholding under an income tax treaty may use its Form W-8IMY to certify its status as a Qualified Intermediary (QI) acting as a QDD and to claim treaty benefits with respect to payments received.
- U.S. Branch Certification: The form was updated to include the certification required of U.S. branches of Foreign Financial Institutions (FFIs) that are not treated as U.S. persons to avoid being withheld upon under chapter 4. Additionally, because U.S. branches of FFIs treated as U.S. persons no longer have to be branches of FFIs with specified chapter 4 statuses, branches may leave lines 5 and 9 on the form blank.
- Limited FFIs and Limited Branches: These statuses have been removed from the form and instructions.
- Sponsored FFIs and Sponsored Direct Reporting Non-Financial Foreign Entities (NFFEs): These entities are now required to obtain their own GIINs, which are to be provided on this form.
- Non-reporting IGA FFIs: Withholding agents must now document non-reporting IGA FFIs. Those non-reporting IGA FFIs that are sponsored entities should provide their own GIIN (if required). Additionally, a trustee of a trustee-documented trust that is a foreign person should provide the GIIN it received when it registered as a participating FFI or reporting Model 1 FFI.
As a reminder, filers should continue to use the current Form W-8IMY and instructions until this version is finalized.
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About the Author
Tom Hospod is a member of the Tax Research Team for the Direct Tax division at Sovos Compliance, where his main areas of focus are Tax Withholding and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. He also has experience in securities law—focusing on broker-dealer disputes and representing clients in FINRA arbitration. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.More Content by Tom Hospod