nonparticipating ffi что это
Формы FATCA. Как и зачем заполнять
При открытие банковского счёта в иностранном или крупном российском банке многие сегодня сталкиваются с необходимостью заполнения формы FATCA. Но что это такое и почему мы должны её заполнять.
В соответствии с американским законом о налогообложении иностранных счетов от 2010 года, который вступил в силу с 1 июля 2014 года (Foreign Account Tax Compliance Act (FATCA)), американские граждане обязаны отчитываться о наличии у них за рубежом иностранных счетов и предоставлять по ним информацию. Кроме того, обязательство сообщать в налоговую службу Штатов (IRS) о наличии счетов американских налогоплательщиков возникает у всех иностранных (неамериканских) финансовых институтов (в первую очередь это банки, а также депозитарии, страховые компании и пр. финансовые институты, о чём подробнее напишу далее). Таким образом Штаты организовали полный контроль за деятельностью и возникающими от этой деятельности доходами своих граждан (обращу внимание, что Америка единственная страна, в которой все без исключения граждане являются налоговыми резидентами страны по факту гражданства, вне зависимости от места проживания).
У других государств обязательство предоставлять информацию по счетам американских граждан возникает на основании межправительственных соглашений FATCA, которые заключены (или в процессе согласования) практически всеми европейскими, и не только европейскими, странами. Есть две модели такого соглашения:
В случае не предоставления информации применяются санкции, о которых пойдёт речь далее. Причём если требования FATCA не выполнил конкретный банк, то санкции будут применены конкретно к его клиентам, а если FATCA не подписала целая страна, то данная мера по удержанию налога будет применена ко всем клиентам банков данной страны.
На сегодняшний день Россия не подписала межправительственного соглашения FATCA. И в связи с международной обстановкой и введёнными против России санкциями, в ближайшее время подписание не ожидается. Соответственно российские банки (и прочие финансовые институты) не обязаны сообщать информацию по американским клиентам. Но не всё так хорошо, как хотелось бы. Потому что в итоге при расчётах с американскими банками к клиентам российских банков могут применяться санкции. Чтобы избежать этого, многие российский финансовые организации (90%) в частном порядке присоединились к требованиям FATCA (путём регистрации в федеральной налоговой службе и получения глобального промежуточного идентификационного номера (GIIN)) и собирают необходимую информацию со своих клиентов. О соотношени действий данных банковских структур с внутренним российским законодательством и международным напишу в отдельной статье.
Остановимся немного подробнее на применение санкций к не участникам FATCA (так называемые недобросовестные держатели счетов). Налоговые агенты в Штатах взимают 30% налоговых отчислений от конкретных налогооблагаемых американских платежей, осуществляемых в пользу сторон, не выполняющих требования Закона FATCA, и такие платежи включают в себя:
Итак, если при открытии счёта банк просит вас заполнить форму FATCA, то не удивляйтесь и не пугайтесь. Тем более если вы не налогоплательщик США, можете смело её заполнять. Если вы при этом не представляете компанию, которая является финансовым институтом и не работаете в интересах американских бенефициарах, то информация о вас никогда не поступит в федеральную налоговую службу. Потому лучше заполнить форму, в противном случае банк может отказать вам в открытие счёта или проведение операций.
Для того, чтобы идентифицировать вас, банк просит указать в анкете тип компании, к которой вы относитесь (применимо к юридическим лицам). Основные типы: финансовая компания и нефинансовая компания. Если нефинансовая компания, то активная или пассивная нефинансовая компания. Определить вашу принадлежность необходимо для понимания объёма информации, которую с вас надо получить. Если вы пассивная нефинансовая компания (например, холдинговая компания), то вы должны сообщить сведения о бенефициарах своего бизнеса, чтобы подтвердить, что там нет резидентов США. Если же вы активная нефинансовая компания, то количество предоставляемых вами сведений минимально (по сути вы ограничиваетесь проставлением одной галочки в форме).
Сложностей с определением типа компании, к которой принадлежит ваша организация возникнуть не должно, потому что к форме приложен словарь с подробными определениями. Если кратко, то:
Финансовые компании – банковские, депозитарные, инвестиционные, специализированные страховые организации, а также холдинговые компании, которые входят в одну группу с перечисленными выше организациями.
Нефинансовые компании – все другие, не относящиеся к финансовым, в частности различные некоммерческие организации (общественные, административные, благотворительные, культурные и пр.).
Активные нефинансовые компании – это компании, которые отвечают одному из перечисленных признаков:
Пассивные нефинансовые компании – все компании, которые не отвечают выше перечисленным признакам. И соответственно более 50% составляет прибыль в виде пассивного дохода (проценты, дивиденды, роялти, арендные платежи и пр.).
Instructions for Form W-8BEN-E (10/2021)
Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)
Section references are to the Internal Revenue Code unless otherwise noted.
Future Developments
For the latest information about developments related to Form W-8BEN-E and its instructions, such as legislation enacted after they were published, go to IRS.gov/FormW8BENE.
What’s New
Guidance under section 1446(f).
The Tax Cuts and Jobs Act (TCJA), added section 1446(f), which generally requires that if the gain on any disposition of an interest in a partnership would be treated under section 864(c)(8) as effectively connected gain, the transferee purchasing an interest in such a partnership from a non-U.S. transferor must withhold a tax equal to 10% of the amount realized on the disposition unless an exception to withholding applies. T.D. 9926, published on November 30, 2020 (84 FR 76910), contains final regulations (“the section 1446(f) regulations”) relating to the withholding and reporting required under section 1446(f), including for transfers of interests in publicly traded partnerships (“PTPs”). Withholding on transfers of interests in PTPs and the revisions included in the section 1446(f) regulations relating to withholding on PTP distributions under section 1446(a) apply to transfers and distributions that occur on or after January 1, 2023. See Notice 2021-51, 2021-36 I.R.B. 361, for more information. The provisions in the section 1446(f) regulations relating to withholding and reporting on transfers of interests in partnerships that are not PTPs generally apply to transfers occurring after January 29, 2021. These instructions have been updated to incorporate the use of this form by certain entities that are transferors of an interest in a partnership subject to withholding on the amount realized from the transfer. See Pub. 515 for an additional discussion of section 1446(f) withholding, including the effective dates of each provision.
Line 4.
Line 4, «Type of entity,» has been updated. The general classification for foreign government has been removed and replaced with the two possible classifications for a foreign government: (i) an integral part of a foreign government; or (ii) an entity that is controlled by a foreign government. See Temporary Regulations section 1.892-2T. See the instructions for Line 4, later.
New Line 9c.
Section 6050Y reporting.
These instructions have been updated to reference the use of this form by an entity (other than a partnership, simple trust, or grantor trust) that is a foreign seller of a life insurance contract or that is a foreign person and a recipient of a reportable death benefit for purposes of reporting under section 6050Y.
Line 14, claim of tax treaty benefits.
The instructions for this line have been updated to include a representation required by entities that are resident in a foreign country that has entered into an income tax treaty with the United States that does not contain a limitation on benefits (LOB) article.
Line 15, special rates and conditions.
The instructions for this line have been updated to include representations required by entities claiming treaty benefits on business profits or gains not attributable to a permanent establishment, including for a foreign partner that derives gain subject to tax under section 864(c)(8) upon the transfer of an interest in a partnership and that would be subjected to withholding under section 1446(f) on the transfer.
Electronic signature.
Reminder
Note.
If you are a resident in a FATCA partner jurisdiction (that is, a Model 1 IGA jurisdiction with reciprocity), certain tax account information may be provided to your jurisdiction of residence.
General Instructions
For definitions of terms used throughout these instructions, see Definitions, later.
Purpose of Form
This form is used by foreign entities to document their statuses for purposes of chapter 3 and chapter 4, as well as for certain other Code provisions as described later in these instructions.
Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S. sources that consists of:
Interest (including certain original issue discount (OID));
Compensation for, or in expectation of, services performed;
Substitute payments in a securities lending transaction; or
Other fixed or determinable annual or periodical gains, profits, or income.
This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441 or 1442 on that amount. A payment is considered to have been made whether it is made directly to the beneficial owner or to another person, such as an intermediary, agent, or partnership, for the benefit of the beneficial owner.
Section 1446(a) requires a partnership conducting a trade or business in the United States to withhold tax on a foreign partner’s allocable share of the partnership’s effectively connected taxable income. In addition, section 1446(f) generally requires a transferee of a partnership interest (or a broker in the case of a transfer of a PTP interest) to withhold on the amount realized from the transfer when any portion of the gain from the transfer is treated as effectively connected gain under section 864(c)(8). Generally, a foreign person that is a partner in a partnership that submits a Form W-8BEN-E for purposes of section 1441 or 1442 will satisfy the documentation requirements under section 1446(a) or (f) as well. However, in some cases the documentation requirements of sections 1441 and 1442 do not match the documentation requirements of section 1446(a) or (f). See Regulations sections 1.1446-1 through 1.1446-6 (for documentation requirements under section 1446(a)) and Regulations sections 1.1446(f)-2 and 1.1446(f)-4 (for documentation requirements under section 1446(f)).
A withholding agent or payer of the income may rely on a properly completed Form W-8BEN-E to treat a payment associated with the Form W-8BEN-E as a payment to a foreign person who beneficially owns the amounts paid. If applicable, the withholding agent may rely on the Form W-8BEN-E to apply a reduced rate of, or exemption from, withholding. If you receive certain types of income, you must provide Form W-8BEN-E to:
Claim that you are the beneficial owner of the income for which Form W-8BEN-E is being provided or a partner in a partnership subject to section 1446; and
If applicable, claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States has an income tax treaty.
You may also use Form W-8BEN-E to identify income from a notional principal contract that is not effectively connected with the conduct of a trade or business in the United States to establish the exception to reporting such income on Form 1042-S. See Regulations section 1.1461-1(c)(2)(ii)(F).
Form W-8BEN-E may also be used to claim an exemption from withholding for portfolio interest pursuant to section 881(c). The portfolio interest exemption does not apply to payments of interest for which the recipient is a 10 percent shareholder of the payer or to payments of interest received by a controlled foreign corporation from a related person. See sections 881(c)(3) and 881(c)(5). A future version of this form may require that persons receiving interest payments to which this form relates identify any obligation with respect to which they have one of these prohibited relationships.
You may also be required to submit Form W-8BEN-E to claim an exception from domestic information reporting on Form 1099 and backup withholding (at the backup withholding rate under section 3406) for certain types of income. Such income includes:
Short-term (183 days or less) original issue discount (short-term OID).
Bank deposit interest.
Foreign source interest, dividends, rents, or royalties.
Provide Form W-8BEN-E to the withholding agent or payer before income is paid or credited to you. Failure to provide a Form W-8BEN-E when requested may lead to withholding at a 30% rate or the backup withholding rate in certain cases when you receive a payment to which backup withholding applies.
In addition to the requirements of chapter 3, chapter 4 requires withholding agents to identify the chapter 4 status of entities that are payees receiving withholdable payments. A withholding agent may request this Form W-8BEN-E to establish your chapter 4 status and avoid withholding at a 30% rate on such payments.
Chapter 4 also requires participating FFIs and certain registered deemed-compliant FFIs to document their entity account holders in order to determine their chapter 4 statuses regardless of whether withholding applies to any payments made to the entities. If you are an entity maintaining an account with an FFI, the FFI may request that you provide this Form W-8BEN-E in order to document your chapter 4 status.
Additional information.
For additional information and instructions for the withholding agent, see the Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY.
Who Must Provide Form W-8BEN-E
You must give Form W-8BEN-E to the withholding agent or payer if you are a foreign entity receiving a withholdable payment from a withholding agent, receiving a payment subject to chapter 3 withholding, or if you are an entity maintaining an account with an FFI requesting this form.
You must provide Form W-8EN-E to the 6050Y(b) issuer (as defined under Regulations section 1.6050Y-1(a)(8)(iii)), to establish your foreign status if you are a foreign entity (other than a partnership, simple trust or grantor trust) that is the seller of a life insurance contract under section 6050Y(b) (excluding a payment of effectively connected income). See Regulations section 1.6050Y-3.
You must also provide Form W-8BEN-E to the payor (as defined under Regulations section 1.6050Y-1(a)(11)), to establish your foreign status if you are an entity receiving a payment of reportable death benefits for purposes of section 6050Y(b) (other than a foreign partnership or a grantor or simple trust receiving a payment of reportable death benefits or a payment of effectively connected income that is subject to chapter 3 withholding). See Regulations section 1.6050Y-4.
Do not use Form W-8BEN-E.
Do not use Form W-8BEN-E if:
You are a U.S. person (including U.S. citizens, resident aliens, and entities treated as U.S. persons, such as a corporation organized under the law of a state). Instead, use Form W-9, Request for Taxpayer Identification Number and Certification.
You are a foreign insurance company that has made an election under section 953(d) to be treated as a U.S. person. Instead, provide a withholding agent with Form W-9 to certify to your U.S. status even if you are considered an FFI for purposes of chapter 4.
You are a nonresident alien individual. Instead, use Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, as applicable.
You are acting as an intermediary (that is, acting not for your own account, but for the account of others as an agent, nominee, or custodian), a qualified intermediary (including a qualified intermediary acting as a qualified derivatives dealer), or a qualified securities lender (QSL). Instead, provide Form W-8IMY.
You are receiving income that is effectively connected with the conduct of a trade or business in the United States, unless it is allocable to you through a partnership. Instead, provide Form W-8ECI, Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. If any of the income for which you have provided a Form W-8BEN-E becomes effectively connected, this is a change in circumstances and the Form W-8BEN-E is no longer valid.
You are filing for a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. possession claiming the applicability of section 115(2), 501(c), 892, 895, or 1443(b). Instead, provide Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting, to certify to your exemption and identify your chapter 4 status. However, you should provide Form W-8BEN-E if you are claiming treaty benefits, and you may provide this form if you are only claiming you are a foreign person exempt from backup withholding or documenting your chapter 4 status. For example, a foreign tax-exempt organization under section 501(c) receiving royalty income that is not exempt because it is taxable as unrelated business income but that is eligible for a reduced rate of withholding under a royalty article of a tax treaty should provide Form W-8BEN-E. You should use Form W-8ECI if you are receiving effectively connected income (for example, income from commercial activities that is not exempt under an applicable section of the Code).
You are a foreign reverse hybrid entity transmitting documentation provided by your interest holders to claim treaty benefits on their behalf. Instead, provide Form W-8IMY. A foreign reverse hybrid entity also may not use this form to attempt to claim treaty benefits on its own behalf. See Foreign Reverse Hybrid Entities, later.
You are a withholding foreign partnership or a withholding foreign trust within the meaning of sections 1441 through 1443 and the accompanying regulations. Instead, provide Form W-8IMY.
You are a foreign partnership or foreign grantor trust providing documentation for purposes of section 1446(a). Instead, provide Form W-8IMY and accompanying documentation.
You are a foreign partnership or foreign grantor trust that is the transferor of a partnership interest for purposes of section 1446(f). Instead, provide Form W-8IMY.
You are a foreign branch of a U.S. financial institution that is an FFI (other than a qualified intermediary branch) under an applicable Model 1 IGA. For purposes of identifying yourself to withholding agents, you may submit Form W-9 to certify to your U.S. status.
Giving Form W-8BEN-E to the withholding agent.
Do not send Form W-8BEN-E to the IRS. Instead, give it to the person who is requesting it from you. Generally, this will be the person from whom you receive the payment, who credits your account, or a partnership that allocates income to you. An FFI may also request this form from you to document the status of your account.
When to provide Form W-8BEN-E to the withholding agent.
Give Form W-8BEN-E to the person requesting it before the payment is made to you, credited to your account, or allocated. If you do not provide this form, the withholding agent may have to withhold at the 30% rate (as applicable under chapters 3 or 4), backup withholding rate, or the rate applicable under section 1446. If you receive more than one type of income from a single withholding agent for which you claim different benefits, the withholding agent may, at its option, require you to submit a Form W-8BEN-E for each type of income. Generally, a separate Form W-8BEN-E must be given to each withholding agent.
If you own the income with one or more other persons, the income will be treated by the withholding agent as owned by a foreign person that is a beneficial owner of a payment only if Form W-8BEN or W-8BEN-E (or other applicable document) is provided by each of the owners. An account will be treated as a U.S. account for chapter 4 purposes by an FFI requesting this form if any of the account holders is a specified U.S. person or a U.S.-owned foreign entity (unless the account is otherwise excepted from U.S. account status for chapter 4 purposes).
Change in circumstances.
If a change in circumstances makes any information on the Form W-8BEN-E you have submitted incorrect for purposes of either chapter 3 or chapter 4, you must notify the withholding agent or financial institution maintaining your account within 30 days of the change in circumstances by providing the documentation required in Regulations section 1.1471-3(c)(6)(ii)(E)(2). See Regulations sections 1.1441-1(e)(4)(ii)(D) for the definition of change in circumstances for purposes of chapter 3, and 1.1471-3(c)(6)(ii)(E) for purposes of chapter 4.
Expiration of Form W-8BEN-E.
Generally, a Form W-8BEN-E will remain valid for purposes of both chapters 3 and 4 for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a Form W-8BEN signed on September 30, 2014, remains valid through December 31, 2017.
However, under certain conditions a Form W-8BEN-E will remain in effect indefinitely absent a change of circumstances. See Regulations sections 1.1441-1(e)(4)(ii) and 1.1471-3(c)(6)(ii) for the period of validity for chapters 3 and 4 purposes, respectively.
Definitions
Account holder.
An account holder is generally the person listed or identified as the holder or owner of a financial account. For example, if a partnership is listed as the holder or owner of a financial account, then the partnership is the account holder, rather than the partners of the partnership. However, an account that is held by a disregarded entity (other than a disregarded entity treated as an FFI for chapter 4 purposes) is treated as held by the entity’s single owner.
Amount realized.
For purposes of section 1446(f), an amount realized on the transfer of an interest in a partnership other than a PTP is as determined under section 1001 (including Regulations sections 1.1001-1 through 1.1001-5) and section 752 (including Regulations sections 1.752-1 through 1.752-7). See Regulations section 1.1446(f)-2(c)(2). An amount realized on the transfer of a PTP interest is the amount of gross proceeds (as defined in Regulations section 1.6045-1(d)(5)) paid or credited to a partner or broker (as applicable) that is a transferor of the interest. The amount realized on a PTP distribution is the amount of the distribution reduced by the portion of the distribution that is attributable to the cumulative net income of the partnership (as determined under Regulations section 1.1446(f)-4(c)(2)(iii)).
Amounts subject to chapter 3 withholding.
Generally, an amount subject to chapter 3 withholding is an amount from sources within the United States that is fixed or determinable annual or periodical (FDAP) income (including such an amount on a PTP distribution unless indicated otherwise). FDAP income is all income included in gross income, including interest (as well as OID), dividends, rents, royalties, and compensation. Amounts subject to chapter 3 withholding do not include amounts that are not FDAP, such as most gains from the sale of property (including market discount and option premiums), as well as other specific items of income described in Regulations section 1.1441-2 (such as interest on bank deposits and short-term OID).
For purposes of section 1446(a), the amount subject to withholding is the foreign partner’s share of the partnership’s effectively connected taxable income. For purposes of section 1446(f), the amount subject to withholding is the amount realized on the transfer of a partnership interest.
Beneficial owner.
For payments other than those for which a reduced rate of, or exemption from, withholding is claimed under an income tax treaty, the beneficial owner of income is generally the person who is required under U.S. tax principles to include the payment in gross income on a tax return. A person is not a beneficial owner of income, however, to the extent that person is receiving the income as a nominee, agent, or custodian, or to the extent the person is a conduit whose participation in a transaction is disregarded. In the case of amounts paid that do not constitute income, beneficial ownership is determined as if the payment were income.
Foreign partnerships, foreign simple trusts, and foreign grantor trusts are not the beneficial owners of income paid to the partnership or trust. The beneficial owners of income paid to a foreign partnership are generally the partners in the partnership, provided that the partner is not itself a partnership, foreign simple or grantor trust, nominee or other agent. The beneficial owners of income paid to a foreign simple trust (that is, a foreign trust that is described in section 651(a)) are generally the beneficiaries of the trust, if the beneficiary is not a foreign partnership, foreign simple or grantor trust, nominee, or other agent. The beneficial owners of income paid to a foreign grantor trust (that is, a foreign trust to the extent that all or a portion of the income of the trust is treated as owned by the grantor or another person under sections 671 through 679) are the persons treated as the owners of the trust. The beneficial owners of income paid to a foreign complex trust (that is, a foreign trust that is not a foreign simple trust or foreign grantor trust) is the trust itself.
Generally, for purposes of section 1446(a) or (f), the same beneficial owner rules apply, except that under section 1446(a) or (f) a foreign simple trust is required to provide a Form W-8BEN-E on its own behalf, rather than on behalf of the beneficiary of such trust.
The beneficial owner of income paid to a foreign estate is the estate itself.
A payment to a U.S. partnership, U.S. trust, or U.S. estate is treated as a payment to a U.S. payee. A U.S. partnership, trust, or estate should provide the withholding agent with a Form W-9 pertaining to itself. However, for purposes of section 1446(a), a U.S. grantor trust or disregarded entity shall not provide the withholding agent a Form W-9. Instead, the entity must provide an applicable Form W-8 or Form W-9 pertaining to each grantor or owner, as appropriate, and, in the case of a trust, a statement identifying the portion of the trust treated as owned by each such person. For purposes of section 1446(f), the grantor or owner must provide an applicable Form W-8 or Form W-9 to certify its status and the amount realized allocable to the grantor or owner, which, alternatively, can be provided by the U.S. grantor trust on behalf of a grantor or owner.
Chapter 3.
Chapter 3 means chapter 3 of the Internal Revenue Code (Withholding of Tax on Nonresident Aliens and Foreign Corporations). Chapter 3 contains sections 1441 through 1464, excluding sections 1445 and 1446.
Chapter 4.
Chapter 4 means chapter 4 of the Internal Revenue Code (Taxes to Enforce Reporting on Certain Foreign Accounts). Chapter 4 contains sections 1471 through 1474.
Chapter 4 status.
The term chapter 4 status means a person’s status as a U.S. person, specified U.S. person, foreign individual, participating FFI, deemed-compliant FFI, restricted distributor, exempt beneficial owner, nonparticipating FFI, territory financial institution, excepted NFFE, or passive NFFE.
Deemed-compliant FFI.
Disregarded entity.
A business entity that has a single owner and is not a corporation under Regulations section 301.7701-2(b) is disregarded as an entity separate from its owner. Generally, a disregarded entity does not submit this Form W-8BEN-E to a withholding agent. Instead, the owner of such entity provides the appropriate documentation (for example, a Form W-8BEN-E if the owner is a foreign entity). However, if a disregarded entity receiving a withholdable payment is an FFI outside the single owner’s country of organization or has its own GIIN, its foreign owner will be required to complete Part II of Form W-8BEN-E to document the chapter 4 status of the disregarded entity receiving the payment.
A disregarded entity with a U.S. owner or a disregarded entity with a foreign owner that is not otherwise able to fill out Part II (that is, because it is in the same country as its single owner and does not have a GIIN) may provide this form to an FFI solely for purposes of documenting itself for chapter 4 purposes. In such a case, the disregarded entity should complete Part I as if it were a beneficial owner and should not complete line 3.
Financial account.
A financial account includes:
A depository account maintained by an FFI;
A custodial account maintained by an FFI;
Equity or debt interests (other than interests regularly traded on an established securities market) in investment entities and certain holding companies, treasury centers, or financial institutions as defined in Regulations section 1.1471-5(e);
Certain cash value insurance contracts; and
For purposes of chapter 4, exceptions are provided for accounts such as certain tax-favored savings accounts, term life insurance contracts, accounts held by estates, escrow accounts, and certain annuity contracts. These exceptions are subject to certain conditions. See Regulations section 1.1471-5(b)(2). Accounts may also be excluded from the definition of financial account under an applicable IGA.
Financial institution.
A financial institution generally means an entity that is a depository institution, custodial institution, investment entity, or an insurance company (or holding company of an insurance company) that issues cash value insurance or annuity contracts. See Regulations section 1.1471-5(e).
An investment entity organized in a territory that is not also a depository institution, custodial institution, or specified insurance company is not treated as a financial institution. Instead, it is a territory NFFE. If such an entity cannot qualify as an excepted NFFE as described in Regulations section 1.1472-1(c)(1) (including an excepted territory NFFE), it must disclose its substantial U.S. owners using this definition (applying the 10 percent threshold) under Regulations section 1.1473-1(b)(1).
Foreign financial institution (FFI).
A foreign financial institution (FFI) means a foreign entity that is a financial institution.
Fiscally transparent entity.
An entity is treated as fiscally transparent with respect to an item of income for which treaty benefits are claimed to the extent that the interest holders in the entity must, on a current basis, take into account separately their shares of an item of income paid to the entity, whether or not distributed, and must determine the character of the items of income as if they were realized directly from the sources from which realized by the entity. For example, partnerships, common trust funds, and simple trusts or grantor trusts are generally considered to be fiscally transparent with respect to items of income received by them.
Flow-through entity.
A flow-through entity is a foreign partnership (other than a withholding foreign partnership), a foreign simple or foreign grantor trust (other than a withholding foreign trust), or, for payments for which a reduced rate of, or exemption from, withholding is claimed under an income tax treaty, any entity to the extent the entity is considered to be fiscally transparent with respect to the payment by an interest holder’s jurisdiction.
Foreign person.
A foreign person includes a foreign corporation, a foreign partnership, a foreign trust, a foreign estate, and any other person that is not a U.S. person. It also includes a foreign branch or office of a U.S. financial institution or U.S. clearing organization if the foreign branch is a qualified intermediary. Generally, a payment to a U.S. branch of a foreign person is a payment to a foreign person.
GIIN.
The term GIIN means a global intermediary identification number. A GIIN is the identification number assigned to an entity that has registered with the IRS for chapter 4 purposes.
Hybrid entity.
A hybrid entity is any person (other than an individual) that is treated as fiscally transparent for purposes of its status under the Code but is not treated as fiscally transparent by a country with which the United States has an income tax treaty. Hybrid entity status is relevant for claiming treaty benefits. A hybrid entity is required to provide its chapter 4 status if it is receiving a withholdable payment.
Intergovernmental agreement (IGA).
An intergovernmental agreement (IGA) means a Model 1 IGA or a Model 2 IGA. For a list of jurisdictions treated as having in effect a Model 1 or Model 2 IGA, see www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA-Archive.aspx.
A Model 1 IGA means an agreement between the United States or the Treasury Department and a foreign government or one or more agencies to implement FATCA through reporting by FFIs to such foreign government or agency, followed by automatic exchange of the reported information with the IRS. An FFI in a Model 1 IGA jurisdiction that performs account reporting to the jurisdiction’s government is referred to as a reporting Model 1 FFI.
A Model 2 IGA means an agreement or arrangement between the United States or the Treasury Department and a foreign government or one or more agencies to implement FATCA through reporting by FFIs directly to the IRS in accordance with the requirements of an FFI agreement, supplemented by the exchange of information between such foreign government or agency and the IRS. An FFI in a Model 2 IGA jurisdiction that has entered into an FFI agreement with respect to a branch is a participating FFI but may be referred to as a reporting Model 2 FFI.
The term reporting IGA FFI refers to both reporting Model 1 FFIs and reporting Model 2 FFIs.
Nonparticipating FFI.
A nonparticipating FFI means an FFI that is not a participating FFI, deemed-compliant FFI, or exempt beneficial owner.
Nonreporting IGA FFI.
A nonreporting IGA FFI is an FFI that is a resident of, or located or established in, a Model 1 or Model 2 IGA jurisdiction that meets the requirements of:
A nonreporting financial institution described in a specific category in Annex II of the Model 1 or Model 2 IGA;
A registered deemed-compliant FFI described in Regulations section 1.1471-5(f)(1)(i)(A) through (F);
A certified deemed-compliant FFI described in Regulations section 1.1471-5(f)(2)(i) through (v); or
An exempt beneficial owner described in Regulations section 1.1471-6.
Participating FFI.
A participating FFI is an FFI that has agreed to comply with the terms of an FFI agreement with respect to all branches of the FFI, other than a branch that is a reporting Model 1 FFI or a U.S. branch. The term participating FFI also includes a reporting Model 2 FFI and a QI branch of a U.S. financial institution unless such branch is a reporting Model 1 FFI.
Participating payee.
A participating payee means any person that accepts a payment card as payment or accepts payment from a third party settlement organization in settlement of a third party network transaction for purposes of section 6050W.
Payee.
A payee is generally a person to whom a payment is made regardless of whether such person is the beneficial owner. For a payment made to a financial account, the payee is generally the holder of the financial account. See Regulations sections 1.1441-1(b)(2) and 1.1471-3(a)(3).
Payment settlement entity (PSE).
A payment settlement entity is a merchant acquiring entity or third party settlement organization. Under section 6050W, a PSE is generally required to report payments made in settlement of payment card transactions or third party network transactions. However, a PSE is not required to report payments made to a beneficial owner that is documented as foreign with an applicable Form W-8.
Publicly Traded Partnership (PTP).
A PTP is an entity that has the same meaning as in section 7704 and Regulations section 1.7704-4 but does not include a PTP treated as a corporation under that section.
PTP interest.
A PTP interest is an interest in a PTP if the interest is publicly traded on an established securities market or is readily tradable on a secondary market (or the substantial equivalent thereof).
Qualified intermediary (QI).
A qualified intermediary (QI) is a person that is a party to an agreement with the IRS that is described in Regulations section 1.1441-1(e)(5)(iii). A qualified derivatives dealer (QDD) is a QI that has agreed to certain reporting and withholding requirements pursuant to Regulations section 1.1441-1(e)(6).
Recalcitrant account holder.
A recalcitrant account holder includes an entity (other than an entity required to be treated as a nonparticipating FFI) that fails to comply with a request by an FFI maintaining the account for documentation and information for determining whether the account is a U.S. account. See Regulations section 1.1471-5(g).
Reverse hybrid entity.
A reverse hybrid entity is any person (other than an individual) that is not fiscally transparent under U.S. tax law principles but that is fiscally transparent under the laws of a jurisdiction with which the United States has an income tax treaty. See Form W-8IMY and the accompanying instructions for information on a reverse hybrid entity making a claim of treaty benefits on behalf of its owners.
Specified U.S. person.
A specified U.S. person is any U.S. person other than a person identified in Regulations section 1.1473-1(c).
Substantial U.S. owner.
A substantial U.S. owner (as defined in Regulations section 1.1473-1(b)) means any specified U.S. person that:
Owns, directly or indirectly, more than 10 percent (by vote or value) of the stock of any foreign corporation;
Owns, directly or indirectly, more than 10 percent of the profits or capital interests in a foreign partnership;
Is treated as an owner of any portion of a foreign trust under sections 671 through 679; or
Holds, directly or indirectly, more than a 10 percent beneficial interest in a trust.
Transfer.
A transfer is a sale, exchange, or other disposition of a partnership interest, and includes a distribution from a partnership to a partner, as well as a transfer treated as a sale or exchange under section 707(a)(2)(B).
Transferee.
A transferee is any person, foreign or domestic, that acquires a partnership interest through a transfer and includes a partnership that makes a distribution.
Transferor.
A transferor is any person, foreign or domestic, that transfers a partnership interest. In the case of a trust, to the extent all or a portion of the income of the trust is treated as owned by the grantor or another person under sections 671 through 679 (such trust, a grantor trust), the term transferor means the grantor or other person.
U.S. person.
A U.S. person is defined in section 7701(a)(30) and includes domestic partnerships, corporations, and trusts.
Withholdable payment.
A withholdable payment is defined in Regulations section 1.1473-1(a). For exceptions applicable to the definition of a withholdable payment, see Regulations section 1.1473-1(a)(4) (for example, certain nonfinancial payments).
Withholding agent.
Any person, U.S. or foreign, that has control, receipt, custody, disposal, or payment of U.S. source FDAP income subject to chapter 3 or 4 withholding is a withholding agent. The withholding agent may be an individual, corporation, partnership, trust, association, or any other entity, including (but not limited to) any foreign intermediary, foreign partnership, and U.S. branches of certain foreign banks and insurance companies.
For purposes of section 1446(a), the withholding agent is the partnership conducting the trade or business in the United States. For a partnership distribution made by a PTP, the withholding agent for purposes of section 1446(a) may be the PTP, a nominee holding an interest on behalf of a foreign person, or both. See Regulations sections 1.1446-1 through 1.1446-6.