EFTA01389574.pdf

Form W-9 (Rev. 11-2017) page 2 By signing the filled-out form, you: Example. Article 20 of the U.S.-China income tax treaty allows an 1. Certify that the TIN you are giving is correct (or you are waiting for a exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this number to be issued), student will become a resident alien for tax purposes if his or her stay in 2. Certify that you are not subject to backup withholding, or the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows 3. Claim exemption from backup withholding if you are a U.S. exempt the provisions of Article 20 to continue to apply even after the Chinese payee. If applicable, you are also certifying that as a U.S. person, your student becomes a resident alien of the United States. A Chinese allocable share of any partnership income from a U.S. trade or business student who qualifies for this exception (under paragraph 2 of the first is not subject to the withholding tax on foreign partners' share of protocol) and is relying on this exception to claim an exemption from tax effectively connected Income, and on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to 4. Certify that FATCA code(s) entered on this form (if any) indicating support that exemption. that you are exempt from the FATCA reporting, is correct. See What is If you are a nonresident alien or a foreign entity, give the requester the FATCA reporting, later, for further Information. appropriate completed Form W-8 or Form 8233. Note: If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requester's form if Backup Withholding it is substantially similar to this Form W-9. What is backup withholding? Persons making certain payments to you Definition of a U.S. person. For federal tax purposes, you are must under certain conditions withhold and pay to the IRS 28% of such considered a U.S. person if you are: payments. This is called "backup withholding." Payments that may be • An individual who is a U.S. citizen or U.S. resident alien; subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, • A partnership, corporation, company, or association created or nonemployee pay, payments made in settlement of payment card and organized in the United States or under the laws of the United States; third party network transactions, and certain payments from fishing boat • An estate (other than a foreign estate); or operators. Real estate transactions are not subject to backup • A domestic trust (as defined in Regulations section 301.7701-7). withholding. Special rules for partnerships. Partnerships that conduct a trade or You will not be subject to backup withholding on payments you business in the United States are generally required to pay a withholding receive if you give the requester your correct TIN, make the proper tax under section 1446 on any foreign partners' share of effectively certifications, and report all your taxable interest and dividends on your connected taxable income from such business. Further, in certain cases tax retum. where a Form W-9 has not been received, the rules under section 1446 Payments you receive will be subject to backup withholding if: require a partnership to presume that a partner is a foreign person, and 1. You do not furnish your TIN to the requester, pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the 2. You do not certify your TIN when required (see the instructions for United States, provide Form W-9 to the partnership to establish your Part II for details), U.S. status and avoid section 1446 withholding on your share of 3. The IRS tells the requester that you furnished an incorrect TIN, partnership income. 4. The IRS tells you that you are subject to backup withholding In the cases below, the following person must give Form W-9 to the because you did not report all your interest and dividends on your tax partnership for purposes of establishing its U.S. status and avoiding return (for reportable interest and dividends only), or withholding on its allocable share of net income from the partnership 5. You do not certify to the requester that you are not subject to conducting a trade or business in the United States. backup withholding under 4 above (for reportable interest and dividend • In the case of a disregarded entity with a U.S. owner, the U.S. owner accounts opened after 1983 only). of the disregarded entity and not the entity; Certain payees and payments are exempt from backup withholding. • In the case of a grantor trust with a U.S. grantor or other U.S. owner. See Exempt payee code, later, and the separate Instructions for the generally, the U.S. grantor or other U.S. owner of the grantor trust and Requester of Form W-9 for more information. not the trust; and Also see Special rules for partnerships, earlier. • In the case of a U.S. trust (other than a grantor trust). the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust. What is FATCA Reporting? Foreign person. If you are a foreign person or the U.S. branch of a The Foreign Account Tax Compliance Act (FATCA) requires a foreign bank that has elected to be treated as a U.S. person, do not use participating foreign financial institution to report all United States Form W-9. Instead. use the appropriate Form W-8 or Form 8233 (see account holders that are specified United States persons. Certain Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign payees are exempt from FATCA reporting. See Exemption from FATCA Entities). reporting code, later, and the Instructions for the Requester of Form Nonresident alien who becomes a resident alien. Generally, only a W-9 for more information. nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax Updating Your Information treaties contain a provision known as a "saving clause." Exceptions You must provide updated information to any person to whom you specified in the saving clause may permit an exemption from tax to claimed to be an exempt payee if you are no longer an exempt payee continue for certain types of income even after the payee has otherwise and anticipate receiving reportable payments in the future from this become a U.S. resident alien for tax purposes. person. For example. you may need to provide updated information if If you are a U.S. resident alien who is relying on an exception you are a C corporation that elects to be an S corporation, or if you no contained in the saving clause of a tax treaty to claim an exemption longer are tax exempt. In addition, you must furnish a new Form W-9 if from U.S. tax on certain types of income, you must attach a statement the name or TIN changes for the account; for example, if the grantor of a to Form W-9 that specifies the following five items. grantor trust dies. 1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien. Penalties 2. The treaty article addressing the income. Failure to furnish TIN. If you fail to furnish your correct TIN to a 3. The article number (or location) in the tax treaty that contains the requester, you are subject to a penalty of $50 for each such failure saving clause and its exceptions. unless your failure is due to reasonable cause and not to willful neglect. 4. The type and amount of income that qualifies for the exemption Civil penalty for false information with respect to withholding. II you from tax. make a false statement with no reasonable basis that results in no 5. Sufficient facts to justify the exemption from tax under the terms of backup withholding, you are subject to a 3500 penalty. the treaty article. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093935 CONFIDENTIAL SDNY_GM_00240119 EFTA01389574