Section 1. PURPOSE AND SCOPE

Sec. 1.01. General Obligations. When the IRS enters into a WP agreement with a foreign person, that foreign person becomes a WP. Except as otherwise provided in this Agreement, WP’s obligations with respect to income distributed to, or included in the distributive shares of, its partners are governed by the Internal Revenue Code and the regulations thereunder. WP must act in its capacity as a withholding foreign partnership pursuant to this Agreement for reportable amounts that are distributed to, or included in the distributive share of, WP’s direct partners. Notwithstanding the preceding sentence, this Agreement only allows a WP that is a foreign reverse hybrid entity (as defined in section 2.31 of this Agreement) to obtain reduced rates of withholding under tax treaties for foreign interest holders, and requires the foreign reverse hybrid entity to comply with the requirements of sec

tion 6.03(C) of this Agreement. WP may also act as a withholding foreign partnership for reportable amounts that are distributed to, or included in the distributive share of, a partner, beneficiary, or owner of a passthrough partner (i.e., an indirect partner of WP) if such indirect partner is not a U.S. non-exempt recipient. Notwithstanding the preceding sentence, a WP may act as a withholding foreign partnership for an indirect partner that is a U.S. non-exempt recipient if such partner is included in the passthrough partner’s chapter 4 withholding rate pool (as defined in section 2.15 of this Agreement) of U.S. payees or recalcitrant account holders provided on the FFI withholding statement (as defined in section 2.26 of this Agreement) of the passthrough partner. WP is not required to act as a withholding foreign partnership for payments that it distributes to, or includes in the distributive share of, a passthrough partner or indirect partner. With respect to an indirect partner for which WP does not (or cannot) act as a withholding foreign partnership, WP must, as part of its WP agreement, comply with the requirements of a withholding agent, as applicable to a nonwithholding foreign partnership under chapters 3 and 4. WP (regardless of whether it is an FFI or NFFE) must also, pursuant to this Agreement, assume primary reporting responsibility for purposes of section 1472. If WP is an FFI, the requirements WP has agreed to as a participating FFI, registered deemed-compliant FFI, or registered deemed-compliant Model 1 IGA FFI apply in addition to the requirements under this Agreement except to the extent specifically modified by this Agreement. This Agreement references WP’s FATCA requirements when necessary to facilitate coordination with a WP’s obligations under this Agreement with respect to its partners. A participating FFI’s obligations are provided in the FFI agreement, a registered deemed-compliant FFI’s (other than a reporting Model 1 FFI’s) obligations are provided in § 1.1471–5(f)(1) or the applicable Model 2 IGA, and the obligations of a reporting Model 1 FFI or a registered deemed-compliant Model 1 IGA FFI are provided in the applicable Model 1 IGA. If WP is an NFFE, WP must comply with

the requirements of a withholding agent under sections 1471 and 1472, which are provided in this Agreement. If a WP acts as a sponsoring entity on behalf of a sponsored FFI or sponsored direct reporting NFFE, it must comply with the due diligence, withholding, reporting, and compliance requirements of a sponsoring entity in addition to its requirements under this Agreement. Sec. 1.02. Parties to the Agreement. This Agreement applies to WP and the IRS.