On December 13, 2016, the IRS issued an updated Form W-8BEN (Rev. 2017). While the IRS has not issued updated form instructions, KPMG expects that the changes will be minimal as the form is substantially the same.
Updates to Form W-8BEN (Rev. January 2017)
The following updates have been made:
Reciprocity Note: The IRS added the following note above Part I:
“If you are resident in a FATCA partner jurisdiction (i.e., a Model 1 IGA jurisdiction with reciprocity), certain tax account information may be provided to your jurisdiction of residence.”
While this note is new, the topic of reciprocity is not new as account information may have been provided to other countries in the past through treaty claims.
Treaty Claim Update:
The IRS updated line 10, special rates and conditions, to include the paragraph of the article in which the beneficial owner is claiming treaty benefits.
Previously, the beneficial owner completing the form was only required to enter the article of the treaty on line 10. Now, both the article and the paragraph must be entered. Furthermore, beneficial owners must now explain how they meet the conditions in both the article and the paragraph of the tax treaty.
Updated Certification language: The IRS updated the first certification bullet to read:
“I am the individual that is the beneficial owner (or am authorized to sign for the individual that is the beneficial owner) of all the income to which this form relates or am using this form to document myself for chapter 4 purposes.”
Previously the certification indicated that the individual was using the form to document themselves as an individual that is an owner or account holder of a foreign financial institution. Now the certification specifies that the individual is using this form to document themselves for chapter 4 purposes.
For your reference: Form W-8BEN (Rev. January 2017) (PDF | 67KB)
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.