Foreign Entities of Tax on - IRS tax forms

1 ContentsWhat's of Subject to Chapter 3 or Chapter 4 Subject to on Specific Governments and Certain Other Foreign or Foreign Withheld withholding on Effectively Connected Real Property To Get Tax DevelopmentsFor the latest information about developments related to Pub. 515, such as legislation enacted after it was published, go to 's NewQualified intermediaries and qualified de-rivatives dealers. This publication has been updated to include new information on qualified intermediaries and qualified derivatives dealers. See Qualified intermediary (QI) and Qualified derivatives dealers, later. For additional guid-ance on amounts subject to section 871(m), see the regulations under section 871(m), the related chapter 3 regulations, and any other guidance released Qualified Intermediary (QI), withholding Foreign Partnership (WP), and withholding For-eign Trust (WT) Application and Account Man-agement System allows Entities to apply, re-new, or terminate their status as a QI, WP, or WT.

2 Go to for the applica-tion and other information on this intermediary (QI) agreement. A new QI agreement was released on December Department of the TreasuryInternal Revenue ServicePublication 515 Cat. No. 15019 LWithholdingof Tax onNonresidentAliens andForeign EntitiesFor use in 2018 Get forms and other information faster and easier at: (English) (Espa ol) ( ) ( ) (Pусский) (Ti ngVi t) Userid: CPMS chema: tipxLeadpct: 100%Pt. size: 8 Draft Ok to PrintAH XSL/XMLF ileid: .. tions/P515/2018/A/XML/Cycle03/source(Ini t. & Date) _____Page 1 of 55 15:04 - 13-Feb-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 13, 201830, 2016, and is effective on or after January 1, 2017. The new agreements and procedural in-formation can be found in Revenue Procedure 2017-15, available at The former agreement, as provided in Revenue Procedure 2014-39, expired on De-cember 31, partnership (WP) agree-ment.

3 A new WP agreement was released on January 19, 2017, and is effective on or after January 1, 2017. The new agreements and pro-cedural information can be found in Revenue Procedure 2017-21, available at The former agreement, as provided in Revenue Procedure 2014-47, expired on December 31, trust (WT) agreement. A new WT agreement was released on January 19, 2017, and is effective on or after January 1, 2017. The new agreements and procedural in-formation can be found in Revenue Procedure 2017-21, available at The former agreement, as provided in Revenue Procedure 2014-47, expired on De-cember 31, derivatives dealer (QDD). The QDD regime will replace the qualified securities lender (QSL) regime in Notice 2010 46. under Notice 2018-5, beginning January 1, 2020, the QSL rules no longer apply for substitute divi-dend payments made under sale-repurchase or securities lending transactions.

4 Only an eligible entity that has entered into a QI agreement can be a QDD. QDDs are discussed later under Amounts paid to qualified derivative dealers (QDDs). Foreign taxpayer identification number (FTIN). This publication is updated to reflect updated requirements for 2018 for when a fi-nancial institution is required to collect and re-port an account holder s 1445 withholding . For tax years be-ginning after December 31, 2017, the rate of withholding by a Qualified Investment Entity on a distribution to a nonresident alien or Foreign corporation that is treated as gain from the sale or exchange of a real property interest by the shareholder has changed to 21%.Chapters 3 and 4 updates. This publication is updated to reflect final and temporary regula-tions under chapters 3 and 4 that were pub-lished in early 2017.

5 References in this publica-tion to the requirements of chapters 3 and 4 take into account these final and temporary reg-ulations unless otherwise W-8 updates. forms in the W-8 series and their instructions have been updated to re-flect the final and temporary chapters 3 and 4 regulations and, for form W-8 IMY, the revised QI agreement with respect to the requirements of a for personal exemptions. Sec-tion 11041 of 115-97 suspends the deduc-tion of personal exemptions for tax years begin-ning after December 31, 2017, and before January 1, tax rates. For tax years beginning after December 31, 2017, and before January 1, 2026, the maximum tax rate for individuals has decreased from to 37%. For tax years beginning after December 31, 2017, the maximum tax rate for corporations has de-creased from 35% to 21%.

6 Section 1446(f) withholding . Generally, new section 1446(f) requires the transferee of a part-nership interest to withhold 10% of the amount realized on the disposition of the partnership in-terest. Notice 2018-8, in 2018-7, availa-ble at , temporarily suspends the application of section 1446(f) to the disposition of certain Publicly Traded Part-nership (PTP) interests until further guidance is issued. For a further exception and more infor-mation, see section 13501 of interest paid to certain nonresident alien individuals. Deposit interest of $10 or more paid to certain nonresident alien individu-als must be reported on form 1042-S. See De-posit interest paid to certain nonresident alien individuals, deposits. You must make all de-posits of taxes paid with respect to form 1042-S (including taxes withheld under either chapter 3 or chapter 4) forms .

7 The official form 1042-S is the standard for substitute forms . All substitute forms must comply with the rules set out in Pub. 1179. A substitute of form 1042-S, Copy A, must be an exact copy of the official form . If it is not, the form may be rejected as incorrect and the IRS may impose penalties. The IRS pro-vides several means of obtaining the most fre-quently used tax forms , including electronically. For details on the requirements of substitute forms , see Pub. electronically. If you file form 1042-S electronically, you will use the Filing Information Returns Electronically (FIRE) system. You get to the system through the Internet at files submitted on the FIRE system, it is the responsibility of the filer to verify the results of the transmission within 5 business days.

8 The IRS will not mail error reports for files that are bad. See Pub. 1187 for information on the re-quirements for filing form 1042-S for extensions on form 8809 must be filed electronically. Requests on form 8809 for an extension of time to file form 1042-S must be made electronically if the re-quest is for more than one payer. See Exten-sion to file form 1042-S with the IRS, of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children (NCMEC). Pho-tographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) if you recognize a publication is for withholding agents who pay income to Foreign persons, including non-resident aliens, Foreign corporations, Foreign partnerships, Foreign trusts, Foreign estates, Foreign governments, and international organi-zations.

9 Specifically, it describes the persons responsible for withholding ( withholding agents), the types of income subject to with-holding, and the information return and tax re-turn filing obligations of withholding agents. In addition to discussing the rules that apply gen-erally to payments of source income to for-eign persons, it also contains sections on the withholding that applies to the disposition of real property interests and the withholding by partnerships on income effectively connec-ted with the active conduct of a trade or and suggestions. We welcome your comments about this publication and your suggestions for future can send us comments through you can write to:Internal Revenue ServiceTax forms and Publications1111 Constitution Ave.

10 NW, IR-6526 Washington, DC 20224 Although we can t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms , instructions, and forms and publications. Visit to download forms and publications. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business questions. If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this ItemsYou may want to see:Publication(Circular E), Employer's Tax GuideEmployer's Supplemental Tax GuideEmployer's Tax Guide to Fringe Benefits(Circular A), Agricultural Employer's Tax GuideTax withholding and Estimated Tax Guide for Tax TreatiesSpecifications for Electronic Filing of form 1042-S, Foreign Person's Source Income Subject to WithholdingFATCA XML User GuideForm (and Instructions)Application for Employer Identification NumberWage and Tax Statement 15 15-A 15-B 51 505 519 901 1187 5124 SS-4 W-2 Page 2 of 55 Fileid.