Updated Information For Users Of The Instructions for Form W-8BEN-E (Rev. June 2014)
This update supplements the Instructions for Form W-8BEN-E (Rev. June 2014) and provides additional information for foreign entities using the form. This update makes certain corrections and adds certain information not included in the instructions. A foreign entity using a Form W-8BEN-E (and the recipient of the form) may rely on this update, which will be incorporated in the next issuance of the instructions.
Part I, Line 4 of Form W-8BEN-E referring to “Chapter 3 Status” is used for the entity providing the Form W-8BEN-E to indicate its chapter 3 status. On page 7, the instructions to Form W-8BEN-E do not provide any exceptions for when this line is not required to be completed. This update to the instructions clarifies that an entity providing Form W-8BEN-E is not required to complete Line 4 if the form is requested by an FFI solely for purposes of documenting the chapter 4 status of the entity that is an account holder and the form is not associated with a withholdable payment or with a reportable amount (as defined in Treas. Reg. § 1.1441-1(e)(3)(vi)) paid to such entity.
If the entity providing the Form W-8BEN-E has indicated in Part I, Line 4 that it is a disregarded entity, partnership, simple trust, or grantor trust, Part I, Line 4 also asks whether the entity is a hybrid entity making a treaty claim (and, if so, directs the entity to complete Part III). This update to the instructions provides that if the disregarded entity, partnership, simple trust, or grantor trust is an account holder of an FFI and is using the form solely for purposes of documenting its chapter 4 status to the FFI and the form is not associated with a withholdable payment or a reportable amount (as defined in Treas. Reg. § 1.1441-1(e)(3)(vi)), it may check “No” on Line 4 if it otherwise completes Part I, Line 4, notwithstanding that it is not required to provide a status for chapter 3 purposes.
On page 6, the instructions state in the definition of “substantial U.S. owner” that a territory NFFE must disclose its substantial U.S. owners if it cannot qualify as an excepted territory NFFE. This update to the instructions clarifies that a territory NFFE that qualifies as an excepted NFFE pursuant to any of the categories described in Treas. Reg. § 1.1472-1(c)(1), which includes an excepted territory NFFE, is not required to disclose its substantial U.S. owners.
On page 10, the instructions include examples of when an entity should complete Line 15 of Form W-8BEN-E, “Special rates and conditions.” The example requiring entities claiming treaty benefits under an “other income” article should be ignored. This update to the instructions clarifies that entities receiving payments of income eligible for treaty benefits under an “other income” article generally will not be required to complete Line 15, unless the claim of treaty benefits requires the payee to meet conditions not covered by the representations made in Line 14.