What’s New

Purpose of form. This section has been revised to provide additional background on the withholding regimes that may apply to payments to foreign entities and the exemptions to withholding that may be claimed with Form W-8EXP. These revisions are not intended to be substantive changes.

Qualified foreign pension funds. These instructions have been updated to reflect final regulations published in December 2022 (87 FR 80042) regarding qualified foreign pension funds and claiming an exemption to withholding under section 1445.

Non-private foundation status. The instructions to line 13c have been updated for revisions to the supporting information required for an entity qualifying under section 501(c)(3) to represent that it is not a foreign private foundation. These revisions generally relate to modifications to Rev. Proc. 92-94, 1992-2 C.B. 507 (previously referenced in these instructions) that were made in Rev. Proc. 2017-53, 2017-40 I.R.B. 263.

Withholding rules. Foreign persons are subject to U.S. tax at a 30% rate on payments they receive from U.S. sources that consist of:

• Interest (including certain original issue discount (OID));

• Dividends;

• Rents;

• Royalties;

• Premiums;

• Annuities;

• Compensation for, or in expectation of, services performed;

• Substitute payments in a securities lending transaction; or