Purpose of Form — 1023 Inst W-8EXP (PDF)

If you receive certain types of income, you must provide Form W-8EXP to:

Establish that you are not a U.S. person;
Claim that you are the beneficial owner of the income for which Form W-8EXP is given; and
Claim a reduced rate of, or exemption from, withholding as a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or a government of a U.S. territory.

In addition, a withholding qualified holder under section 1445 may use a Form W-8EXP to establish that it is treated as a non-foreign person and claim an exemption to withholding pursuant to section 897(l) (relating to qualified foreign pension funds).

Other fixed or determinable annual or periodical gains, profits, or income.

This tax is imposed on the gross amount paid and is generally collected by withholding under section 1441 or 1442 on that amount. Certain payments made to foreign private foundations are instead subject to tax at a 4% rate under section 1443.

Under chapter 4, withholdable payments made to a foreign entity are generally subject to withholding at a 30% rate unless the entity has established an exemption to withholding based on a valid chapter 4 status.

Gain or loss of a foreign person on the disposition of a U.S. real property interest (USRPI) is taken into account as if the gain or loss is effectively connected with a U.S. trade or business under section 897. The transferee is generally required to withhold tax from the amount realized under section 1445. Certain distributions by qualified investment entities (QIEs) that are attributable to the disposition of USRPIs are also subject to withholding under section 1445. Gain or loss of a foreign person that is a qualified holder (as defined in Regulations section 1.897(l)-1(d)) on the disposition of a USRPI or on a portion of a distribution from a qualified investment entity that is attributable to the disposition of USRPIs is exempt from tax under section 897 and from withholding under section 1445. The amount realized by a foreign partnership all the interests of which are held by qualified holders (a withholding qualified holder as defined in Regulations section 1.1445-1(g)(11)) on the disposition of a USRPI or a distribution from a QIE that is attributable to the disposition of USRPIs is exempt from withholding under section 1445.

Foreign persons are also subject to tax at graduated rates on income they earn that is considered effectively connected with a U.S. trade or business. If a foreign person holds an interest in a partnership that conducts a U.S. trade or business, the foreign person is considered to be engaged in a U.S. trade or business. The partnership is

Nov 7, 2023 Cat. No. 25903G

required to withhold tax under section 1446(a) on the foreign person's allocable share of the partnership's effectively connected taxable income (ECTI). A foreign person that directly or indirectly disposes of an interest in a partnership that conducts a U.S. trade or business may have gain treated as effectively connected income under section 864(c)(8). Under section 1446(f), the transferee purchasing that partnership interest is generally required to withhold a tax equal to 10% of the amount realized.

Exemptions to withholding. In general, payments to a foreign government (including a foreign central bank of issue wholly owned by a foreign sovereign) from investments in the United States in stocks, bonds, other domestic securities, financial instruments held in the execution of governmental financial or monetary policy, and interest on deposits in banks in the United States are exempt from tax under section 892 and exempt from withholding under sections 1441 and 1442. Payments other than those described above, including income derived in the United States from the conduct of a commercial activity, income received from a controlled commercial entity (including gain from the disposition of any interest in a controlled commercial entity), and income received by a controlled commercial entity, do not qualify for exemption from tax under section 892 or exemption from withholding under sections 1441 and 1442. See Temporary Regulations section 1.892-3T. In addition, certain distributions to a foreign government from a real estate investment trust (REIT) may not be eligible for relief from withholding and may be subject to withholding at 21% (35% for distributions made before January 1, 2018) of the gain realized. For the definition of “commercial activities,” see Temporary Regulations section 1.892-4T.

In general, payments to an international organization from investment in the United States in stocks, bonds and other domestic securities, interest on deposits in banks in the United States, and payments from any other source within the United States are exempt from tax under section 892 and exempt from withholding under sections 1441 and 1442. See Temporary Regulations section 1.892-6T. Payments to a foreign central bank of issue (whether or not wholly owned by a foreign sovereign) or to the Bank for International Settlements from obligations of the United States or of any agency or instrumentality thereof, or from interest on deposits with persons carrying on the banking business, are also generally exempt from tax under section 895 and exempt from withholding under sections 1441 and 1442. In addition, payments to a foreign central bank of issue from bankers’ acceptances are exempt from tax under section 871(i)(2)(C) and exempt from withholding under sections 1441 and 1442.

Payments to a foreign tax-exempt organization of certain types of U.S. source income are also generally exempt from tax and exempt from withholding. Gross investment income of a foreign private foundation, however, is subject to withholding under section 1443(b) at a rate of 4%.

Payments to a government of a territory of the United States are generally exempt from tax and withholding under section 115(2).

To establish eligibility for exemption from 30% tax and withholding under sections 892, 895, 501(c), or 115(2), a

In addition chapter 4 requires withholding agents to identify the chapter 4 status of payees receiving withholdable payments to determine whether withholding applies under chapter 4. Under chapter 4, certain foreign governments, foreign central banks, international organizations, and foreign entities described in section 501(c) (other than an insurance company described in section 501(c)(15)) are not subject to withholding under chapter 4. A withholding agent may request this Form W-8EXP to establish your chapter 4 status and avoid withholding.

Chapter 4 also requires participating foreign financial institutions (FFIs) and certain registered deemed-compliant FFIs to document entity account holders in order to determine their chapter 4 status regardless of whether withholding applies to any payments made to the entities. If you maintain an account with an FFI and have a chapter 4 status shown in Part I, line 4 of this form, provide this Form W-8EXP when requested by the FFI in order to document your chapter 4 status.

Additional information. For additional information and instructions for the withholding agent, see the Instructions for the Requester of Forms W–8 BEN, W–8 BEN–E, W–8 ECI, W–8 EXP, and W–8 IMY .

Who must provide Form W-8EXP. You must give Form W-8EXP to the withholding agent or payer if you are:

A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. territory receiving an amount subject to withholding under sections 1441 through 1443 or a withholdable

-2- Instructions for Form W-8EXP (Rev. 10-2023)

foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. territory must provide a Form W-8EXP to a withholding agent or payer with all necessary documentation. The withholding agent or payer of the income may rely on a valid Form W-8EXP to treat the payment, credit, or allocation associated with the Form W-8EXP as being made to a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. territory that is exempt from withholding at the 30% rate (or, where appropriate, subject to withholding at a 4% rate).

For purposes of section 1445, a withholding qualified holder may establish an exemption from tax under section 897 by providing a Form W-8EXP to a withholding agent or transferee. A withholding qualified holder is not exempt from withholding under section 1441 or 1442 by virtue of its status as a withholding qualified holder.

For purposes of section 1446(a), a partner may provide a Form W-8EXP to reduce its ECTI subject to withholding if it is a:

Foreign tax-exempt organization (under section 501(c)) receiving an allocable share of income that is not includible under sections 512 and 513, or
Qualified holder under section 1445 receiving an allocable share of income subject to section 897. See Regulations section 1.1446-1(c)(2)(ii)(G).

payment subject to chapter 4, or are such an entity maintaining an account with an FFI requesting this form;

A withholding qualified holder claiming an exemption to withholding under section 1445;
A foreign tax-exempt organization claiming an exemption to withholding under section 1446(a) on your allocable share of ECTI that is not includible under section 512 and section 513 for purposes of computing unrelated business taxable income;
A qualified holder claiming an exemption to withholding under section 1446(a) on its allocable share of ECTI that is income subject to section 897; or
Otherwise establishing your status as a non-U.S. person (for an entity permitted to use this form under applicable regulations).

When not to use Form W-8EXP. Do not use Form W-8EXP if you are:

Not a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. territory receiving amounts subject to withholding under sections 1441 through 1443 claiming the applicability of section 115(2), 501(c), 892, 895, or 1443(b). Instead, provide Form W-8BEN-E, or Form W-8ECI. For example, if you are a foreign tax-exempt organization claiming a benefit under an income tax treaty, provide Form W-8BEN-E.

person will be the one from whom you receive the payment (including the transferee of a USRPI), who credits your account, or a partnership that allocates income to you. Generally, a separate Form W-8EXP must be given to each withholding agent.

Give Form W-8EXP to the person requesting it before the payment is made, credited, or allocated to you or your account. If you qualify for an exemption to tax, but do not provide this form, the withholding agent may have to withhold tax at the highest applicable rate. If you receive more than one type of income from a single withholding agent, the withholding agent may require you to submit a Form W-8EXP for each different type of income.

Expiration of Form W-8EXP. Generally, a Form W-8EXP remains in effect indefinitely until a change of circumstances makes any information provided on the form incorrect. In some cases, however, Form W-8EXP will remain valid only for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year. For example, a Form W-8EXP provided on February 15, 2022, by a controlled entity of a foreign government would be subject to the 3-year validity period and thus would expire on December 31, 2025, for sections 1441 through 1443 purposes. For more exceptions to the indefinite validity period, see:

Regulations section 1.1441-1(e)(4)(ii) for sections 1441 through 1443 purposes,
Regulation section 1.1445-5(b)(3)(ii)(B)(3) (2 years) for 1445 purposes,
Regulation section 1.1446-1(c)(2)(iv) for section 1446 purposes, and
Receiving a withholdable payment from a withholding agent requesting this form and you do not have a chapter 4 status identified in Part I, line 4 of this form.
Acting as an intermediary (that is, acting not for your own account, but for the account of others as an agent, nominee, or custodian). Instead, provide Form W-8IMY.
Receiving income that is effectively connected with the conduct of a trade or business in the United States. Instead, provide Form W-8ECI, when applicable.
Regulations section 1.1471-3(c)(6)(ii) for chapter 4 purposes.
A tax-exempt organization receiving unrelated business taxable income subject to withholding under section 1443(a). Instead, provide Form W-8BEN-E or Form W-8ECI (as applicable) for this portion of your income.
A foreign partnership, a foreign simple trust, a foreign complex trust, or a foreign grantor trust. Instead, provide Form W-8ECI, W-8BEN-E, or Form W-8IMY. However, a foreign grantor trust is required to provide documentation of its grantor or other owner for purposes of section 1446. See Regulations section 1.1446-1. In addition, a foreign partnership may use this form to establish its status as a withholding qualified holder exempt from withholding under section 1445.
A foreign partnership receiving a payment subject to withholding under section 1445 and you don't qualify as a withholding qualified holder under section 1445 because not all of your partners are qualified holders. In such a case, see Regulations section 1.1445-3 for procedures to obtain a withholding certificate to reduce withholding.
A foreign partnership claiming an exemption or adjustment to withholding under section 1446(f) on an amount realized on the transfer of an interest in a partnership.

Giving Form W-8EXP to the withholding agent. Do not send Form W-8EXP to the IRS. Instead, give it to the person who is requesting it from you. Generally, this

Instructions for Form W-8EXP (Rev. 10-2023) -3-

Change in circumstances. If a change in circumstances makes any information on the Form W-8EXP you have submitted incorrect, you must notify the withholding agent within 30 days of the change in circumstances and you must file a new Form W-8EXP or other appropriate form. A withholding qualified holder that fails to qualify as a withholding qualified holder due to a change in circumstances must notify the relevant entity before any further dispositions or distributions. See Regulations section 1.1445-5(b)(3)(ii)(B)(3).