SECTION 1. PURPOSE

This revenue procedure sets forth the withholding foreign partnership agreement (WP agreement) and withholding foreign trust agreement (WT agreement) entered into under § 1.1441–5(c)(2)(ii) and (e)(5)(v). In general, the WP and WT agreements allow a foreign partnership or foreign trust to assume the withholding and reporting obligations under chapters 3 and 4 of the Internal Revenue Code (Code) for certain payments of U.S. source income (such as interest, dividends, and royalties) made to its direct partners, beneficiaries, or owners, and in some cases, persons holding interests in the partnership or trust through one or more foreign intermediaries or flowthrough entities (indirect partners, beneficiaries, or owners). This revenue procedure also provides guidance to foreign partnerships and foreign trusts for how to apply to enter into, or renew, the WP or WT agreement.

The WP agreement and WT agreement provided in Revenue Procedure 2014–47, 2014–35 I.R.B. 393 (the 2014 WP agree

ment and 2014 WT agreement), were scheduled to expire on December 31, 2016, but on December 30, 2016, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) announced in Revenue Procedure 2017–15, 2017–03 I.R.B. 437, that the 2014 WP and WT agreements would be treated as in effect until the updated agreements are issued in January 2017. The WP and WT agreements in this revenue procedure apply to withholding foreign partnerships (WPs) and withholding foreign trusts (WTs) with a WP or WT agreement effective on or after the date of issuance of this revenue procedure (but see section 12 of the WP or WT agreement for when the terms of the WP or WT agreement applies).

Section 2 of this revenue procedure provides background on the withholding and reporting requirements of chapters 3 and 4 of the Code. Section 3 of this revenue procedure describes the scope of this revenue procedure, and section 4 of this revenue procedure highlights changes to the WP and WT agreements. Section 5 of this revenue procedure provides the application procedures for becoming a WP or WT and for renewing a WP or WT agreement. Section 6 of this revenue procedure provides the WP agreement and section 7 of this revenue procedure provides the WT agreement. Section 8 of this revenue procedure provides the effective date; section 9 provides the effect on other documents; section 10 describes the collection of information burdens under the Paperwork Reduction Act; and section 11 provides drafting information.