New Form W-8BEN and Updated Final Chapter 3 and 4 Provisions and Proposed Transitional Provisions Under Chapters 3 and 4 of the U.S. Internal Revenue Code

New Form W-8BEN

In January 2017, the IRS published a new Form W-8BEN. Part II (Claim of Treaty Benefits) was amended in order to enable a beneficial owner to provide more details regarding the provisions under which treaty benefits are claimed. Minor changes were also made with respect to the certifications in Part III.  

Updated instructions are expected to be published in the near future. Withholding agents will have to request the new Form W-8BEN starting August 1, 2017

Updated final Chapter 3 and 4 and proposed temporary Chapter 3 and 4 Regulations of the U.S. Internal Revenue Code

The IRS recently published the following regulations:

• Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities. The regulations finalize certain proposed regulations under Chapter 4, withdraw corresponding temporary regulations and include additional temporary regulations which serve as proposed regulations set forth in the Notice of Proposed Rulemaking. 

• Regulations Regarding the Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons, Information Reporting and Backup Withholding on Payments Made to Certain U.S. Persons, and Portfolio Interest Treatment. The regulations finalize certain proposed regulations under Chapter 3 and 61, as well as Sections 871, 3406 and 6402 of the Internal Revenue Code and withdraw corresponding temporary regulations. The document also introduces additional Chapter 3 temporary regulations which serve as proposed regulations set forth in the Notice of Proposed Rulemaking.  

Both regulations have been in effect since January 6, 2017.