On 26 August 2016, the Internal Revenue Service (IRS) published a draft version of Form W-8IMY (Certificate of Foreign Intermediary, Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting) but has not issued any draft instructions. Comments can be submitted directly on the IRS Website.
The new draft Form W-8IMY contains the following main changes:A new Chapter 4 status for “Certified deemed-compliant investment advisors and investment managers” has been added to the form. The corresponding certification can be found under Part XVI.The Chapter 4 status “Sponsored FFI that has not obtained a GIIN” has been replaced by the status “Sponsored FFI”. The corresponding certification can be found under Part X and now requires the Sponsored FFI to list the GIIN of the Sponsoring Entity.Part II has been updated so that only disregarded entities with a GIIN or a branch of an FFI in a country other than the FFI’s country or residence must complete this section.Part III has been updated to add additional certification and checkboxes for Qualified Intermediaries (QI) that act as Qualified Derivatives Dealers (QDD) and for QIs that assume primary withholding responsibility under chapter 3 and 4 and primary Form 1099 reporting and backup withholding responsibility for payments of substitute interest.Part VIII has been updated to add a box to allow foreign partnership to certify that it is a partner in a lower-tier partnership and that it provides the form W8IMY for purposes of section 1446.Part XIX has been updated and now requires Nonreporting IGA FFI to specify whether they operate under a Model 1 or Model 2 IGA. Additionally, Nonreporting IGA being a trustee documented trust or a sponsored entity must provide the name of the trustee or sponsor whose GIIN is provided on line 9a or their own GIIN.Part XXVIII has been updated and now requires Sponsored Direct reporting NFFE to list the GIIN of the Sponsoring Entity.
The above information is not intended to be exhaustive. We continue to monitor the information available on the market and will provide more information as it becomes available.
This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.