AUSTRALIAN GUIDE TO COMPLETING W-8BEN FORMS

Transcription

1 AUSTRALIAN GUIDE TO COMPLETING W-8BEN FORMS CURRENT AS AT 25 OCTOBER

2 Disclaimer: The information contained in this booklet is general in nature and does not constitute financial or tax advice. You should not rely on the information contained in this booklet and it is recommended that you seek independent professional advice relating to your specific circumstances. The information is current at the date of publication only. While we have made every attempt to ensure that the information contained in this booklet has been obtained from reliable sources, Chapman Eastway is not responsible for any errors or omissions, or for the results obtained from the use of this information at the date of publication. In no circumstances will Chapman Eastway be liable to you or anyone else for any decisions made or action taken in reliance on the information contained in the booklet or for any consequential, special or similar damages, even if advised of the possibility of such damages. This guide is not to be used for US persons 2

3 Introduction Thank you for choosing Chapman Eastway to assist you in completing your US W-8BEN forms. We are a firm of family and business advisors with a proud 119 year history and we are delighted to bring you this publication. For an investor who is non-resident of the US for tax purposes deriving certain income (e.g. dividends and interests) sourced in the US, the US Internal Revenue Service (IRS) requires certain documentation from the ultimate beneficial owner to ensure the appropriate level of tax is withheld in the US. Non-resident investors are subject to a withholding tax rate of 30% on certain income derived from US sources. Where the requisite form is completed in full by investors, a reduced withholding tax rate of 15% may apply for Australian tax residents who derive certain income sourced in the US, in accordance with the Australia/US Double Taxation Agreement (DTA). Generally, a W-8BEN form will remain in effect until 31 December, three years after the date of signing. For example, a form signed on 15 September 2016 will remain in effect until 31 December However, if a change in circumstances makes any information on the form incorrect, the investor must file a new W-8BEN form within 30 days of any such change. Once the form is completed and signed, it should be sent to the requesting financial institution or the withholding agent who requests it. Do not send this form to the IRS. This guide is designed to assist Australian Resident Companies, Trusts, Self Managed Superannuation Funds (SMSFs), Non-for-Profit Companies, Non-for-Profit Trusts and Individuals to complete the necessary US W-8BEN forms. This booklet does not constitute legal, financial or taxation advice. We strongly recommend that you obtain professional advice which considers your specific circumstances. If you would like further assistance please contact Chapman Eastway. 3

4 What Forms to Complete For use by Australian Residents and Resident Entities only Non-for- Non-for- Company Trust SMSF Profit Profit Individual Partnership Company Trust Estate Go to page 5 Go to page 9 Go to page 13 Go to page 16 Go to page 19 Go to page 22 Contact us 4

5 Guide to W-8BEN-E Form - Company SAMPLE W-8BEN-E FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN-E Form is required for Australian Resident Companies that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the Company. Item 2. Write Australia if the Company is incorporated in Australia. Item 3. Leave blank. Item 4. Tick Corporation. Item 5. Select Active NFFE or Passive NFFE. Refer to Decision Tree on page 24 for guidance in making this determination. 5

6 Item 6. Provide the Company s principal place of business, or registered office address. Do not provide a PO Box or care-of address. Item 7. Provide the Company s postal address if different from above. Item 8. Provide US Taxpayer Identification Number if applicable. Item 9a. Provide GIIN (Global Intermediary Identification Number) if applicable. Item 9b. Provide the Company s ABN or TFN if applicable. If the Company does not have an ABN or a TFN, leave blank. Item 10. Leave blank. Part III - Claim of Tax Treaty Benefits Item 14a. Tick box and write Australia. Item 14b. Tick the first box The beneficial owner derives the item (or item) of income for. Tick box Company that meets the ownership and base erosion test. Note that a company generally needs to satisfy the ownership and base erosion test to claim treaty benefits, which means at least 50% (by vote or value) of the company is held by Australian and/or US persons, and at least 50% of its gross income is paid to Australian and/or US persons as deductible payments. Please seek advice otherwise. Item 14c. Leave blank. Item 15. Leave blank. 6

7 Part XXV - Active NFFE Note: Only complete this section if Active NFFE is selected at Item 5. Item 39. Tick box if the Company is an Active NFFE. Part XXVI - Passive NFFE Note: Only complete this section if Passive NFFE is selected at Item 5. Item 40a. Tick box if the Company is a Passive NFFE. Item 40b. Tick box if the Company has no substantial US owner/s. A substantial US owner is a US person who owns directly or indirectly more than 10% interest (by vote or value) in the Company. Item 40c. Tick box if the Company has substantial US owner/s. Part XXIX - Substantial US Owners of Passive NFFE Note: Only complete this section if Item 40c box is ticked. For each sub stantial US owner, provide Name, Residential Address and TIN (US Taxpayer Identification Number). 7

8 Part XXX: Certification Only one director of the Company should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the authorised person agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. Tick the box certifying that this person has the capacity to sign for the Company. Note: companies with multiple director should make a resolution authorising a specific individual to make the relevant certifications. 8

9 Guide to W-8BEN-E Form - Trust SAMPLE W-8BEN-E FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN-E Form is required for Australian Resident Trusts (being generally, discretionary or unit trusts) that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the Trust as it appears on the Trust Deed. Item 2. Write Australia. Item 3. Leave blank. Item 4. Tick Complex trust. Item 5. Select Active NFFE or Passive NFFE. Refer to Decision Tree on page 24 for guidance in making this determination. 9

10 Item 6. Provide the Trust s principal place of business, or registered office address. Do not provide a PO Box or care-of address. Item 7. Provide the Trust s postal address if different from above. Item 8. Provide US Taxpayer Identification Number if applicable. Item 9a. Provide GIIN (Global Intermediary Identification Number) if applicable. Item 9b. Provide the Trust s ABN or TFN if applicable. If the Trust does not have an ABN or a TFN, leave blank. Item 10. Leave blank. Part III - Claim of Tax Treaty Benefits Item 14a. Tick box and write Australia. Item 14b. Tick the first box The beneficial owner derives the item (or item) of income for. Tick box Company that meets the ownership and base erosion test. Note that a trust generally needs to satisfy the ownership and base erosion test to claim treaty benefits, which means at least 50% of the beneficial interest held by Australian and/or US persons, and at least 50% of its gross income is paid to Australian and/or US persons as deductible payments. Please seek advice otherwise. Item 14c. Leave blank. Item 15. Leave blank. 10

11 Part XXV - Active NFFE Note: Only complete this section if Active NFFE is selected at Item 5. Item 39. Tick box if the Trust is an Active NFFE. Part XXVI - Passive NFFE Note: Only complete this section if Passive NFFE is selected at Item 5. Item 40a. Tick box if the Trust is a Passive NFFE. Item 40b. Tick box if the Trust has no substantial US owner/s. A substantial US owner is a US person who receives more than 10% of the trust distribution during the prior calendar year. Item 40c. Tick box if the Trust has substantial US owner/s. Part XXIX - Substantial US Owners of Passive NFFE Note: Only complete this section if Item 40c box is ticked. For each substantial US owner, provide Name, Residential Address and TIN (US Taxpayer Identification Number). 11

12 Part XXX: Certification Only one Individual Trustee or one director of a Corporate Trustee should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the authorised person agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. Tick the box certifying that this person has the capacity to sign for the Trust. Note: trusts with multiple trustees should make a resolution authorising a specific individual to make the relevant certifications. 12

13 Guide to W-8BEN-E Form Self Managed Superannuation Fund (SMSF) SAMPLE W-8BEN-E FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN-E Form is required for Australian SMSFs that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the SMSF as it appears on the Deed (including the full word superannuation ). Item 2. Write Australia. Item 3. Leave blank. Item 4. Tick Complex trust. Note: Generally SMSFs are considered Complex Trusts, however in this regard we recommend you seek advice specific to your circumstances. Item 5. Tick Nonreporting IGA FFI. 13

14 Item 6. Provide the SMSF s principal place of business, or registered office address. Do not provide a PO Box or care-of address. Item 7. Provide the SMSF s postal address if different from above. Item 8. Provide US Taxpayer Identification Number if applicable. Item 9a. Provide GIIN (Global Intermediary Identification Number) if applicable. Item 9b. Provide the SMSF s ABN or TFN if applicable. If the SMSF does not have an ABN or a TFN, leave blank. Item 10. Leave blank. Part III - Claim of Tax Treaty Benefits Item 14a. Tick box and write Australia. Item 14b. Tick the first box The beneficial owner derives the item (or item) of income for. Tick box Tax exempt pension trust or pension fund. Note that treaty benefits are only available to a SMSF where at least 50% of the beneficiaries, members or participants are individual residents in Australia and/or the US. Please seek advice otherwise. Item 14c. Leave blank. Item 15. Leave blank. 14

15 Part XII Nonreporting IGA FFI Item 26. Tick the first box. Write Australia, tick box for Model 1 IGA and write Australian retirement fund. Leave blank for the rest. Part XXX: Certification Only one Individual Trustee or one director of a Corporate Trustee should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the authorised person agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. Tick the box certifying that this person has the capacity to sign for the SMSF. Note: funds with multiple trustees should make a resolution authorising a specific individual to make the relevant certifications. 15

16 Guide to W-8BEN-E Form Non-for-Profit Company SAMPLE W-8BEN-E FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN-E Form is required for Australian Resident Non-for-Profit Companies that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the Company. Item 2. Write Australia. Item 3. Leave blank. Item 4. Tick Corporation. Item 5. Tick Nonproft organization. 16

17 Item 6. Provide the Company s principal place of business, or registered office address. Do not provide a PO Box or care-of address. Item 7. Provide the Company s postal address if different from above. Item 8. Provide US Taxpayer Identification Number if applicable. Item 9a. Provide GIIN (Global Intermediary Identification Number) if applicable. Item 9b. Provide the Company s ABN or TFN if applicable. If the Company does not have an ABN or a TFN, leave blank. Item 10. Leave blank. Part III - Claim of Tax Treaty Benefits Item 14a. Tick box and write Australia. Item 14b. Tick the first box The beneficial owner derives the item (or item) of income for. Tick box Other tax exempt organization. Item 14c. Leave blank. Item 15. Leave blank. 17

18 Part XXII Non-Profit Organization Item 36. Tick box. Part XXX: Certification Only one director of the Company should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the authorised person agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. Tick the box certifying that this person has the capacity to sign for the Company. Note: companies with multiple director should make a resolution authorising a specific individual to make the relevant certifications. 18

19 Guide to W-8BEN-E Form Non-for-profit Trust SAMPLE W-8BEN-E FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN-E Form is required for Australian Resident Non-for-Profit Trusts that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the Trust. Item 2. Write Australia. Item 3. Leave blank. Item 4. Tick Complex trust. Item 5. Tick Nonprofit organization. 19

20 Item 6. Provide the Trust s principal place of business, or registered office address. Do not provide a PO Box or care-of address. Item 7. Provide the Trust s postal address if different from above. Item 8. Provide US Taxpayer Identification Number if applicable. Item 9a. Provide GIIN (Global Intermediary Identification Number) if applicable. Item 9b. Provide the Trust s ABN or TFN if applicable. If the Trust does not have an ABN or a TFN, leave blank. Item 10. Leave blank. Part III - Claim of Tax Treaty Benefits Item 14a. Tick box and write Australia. Item 14b. Tick the first box The beneficial owner derives the item (or item) of income for. Tick box Other tax exempt organization. Item 14c. Leave blank. Item 15. Leave blank. 20

21 Part XXII Non-Profit Organization Item 36. Tick box. Part XXX: Certification Only one Individual Trustee or one director of a Corporate Trustee should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the authorised person agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. Tick the box certifying that this person has the capacity to sign for the Trust. Note: trusts with multiple trustees should make a resolution authorising a specific individual to make the relevant certifications. 21

22 Guide to W-8BEN Form Individual SAMPLE W-8BEN FORM INSTRUCTIONS ON HOW TO COMPLETE W-8BEN Form is required for Australian Resident individuals that derive investment income (e.g. dividend or interest) from US investments. Part I - Identification of Beneficial Owner Item 1. Write full name of the individual. Item 2. Write Australia. Item 3. Provide residential address. Do not provide a PO Box. Item 4. Provide postal address if different from above. Item 5. Provide US Individual Taxpayer Identification Number if applicable. Item 6. Provide Tax File Number. Item 7. Leave blank. Item 8. Provide Date of Birth (in US date format MM-DD-YYYY). Part II - Claim of Tax Treaty Benefits Item 9. Write Australia. Item 10. Leave blank. 22

23 Part III - Certification The individual should print their name and sign and write the date of signing the form (in US date format MM/DD/YYYY). By signing this form, the individual agrees to provide a new form within 30 days following a change in circumstances such that any/all of the information on this form becomes incorrect. 23

24 Decision Tree Active NFFE or Passive NFFE This Decision Tree will assist you in determining whether an entity is an Active NFFE or Passive NFFE. Yes Does the entity carry on an active trading business (1)? Unsure No For the previous calendar year: 1) was at least 50% of the gross income derived from passive investments (2) ; and 2) were at least 50% of the assets held as passive investment assets? No Yes The entity is usually considered a Passive NFFE Unsure The entity is usually considered an Active NFFE Contact us (1) Active trading business means any business other than a specified investment or personal services business. (2) Income from passive investments include dividends, interests, rent, royalties, annuities etc. (3) Generally speaking, a SMSF should most likely be regarded as a Passive NFE. 24

25 Level 15, 9 Hunter Street Sydney NSW 2000 Telephone: Facsimile: mail@chapmaneastway.com.au Web: Mail: GPO Box 979 Sydney NSW 2001 Primary Contacts: Mr Sean Cortis CEO & Principal Mr Anthony Ryan Principal 25