How do we determine the shareholders status as a foreign person?
A payee is subject to NRA withholding only if it is a foreign person. Generally, we must withhold 30% from the gross amount paid to a foreign payee unless we can reliably associate the payment with valid documentation that establishes either that the payee is a U.S. person, or that the foreign person is entitled to a reduced rate of withholding under a treaty between the U.S. and the shareholder’s country of residence. A foreign person that is a beneficial owner should give us a Form W-8. There are four forms in the W-8 series. The form to be used depends on the type of certification being made. The four W-8 forms currently in use are: • Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. • Form W-8ECI, Certificate of Foreign Person’s Claim That Income is Effectively Connected With the Conduct of a Trade or Business in the United States. • Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Wit
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