Tax Regulations for Foreign Accounts

The Internal Revenue Service (IRS) has issued new non-resident alien NRA) regulations that significantly change the withholding and reporting rules on foreign accounts. These new regulations became effective January 1, 2001. The IRS requires that NRA investors certifying non-U.S. status and, if applicable, treaty eligibility complete one of the new Form W-8s.

Why completing this form is critical

This form verifies that you qualify either as a foreign person or as an entity that is exempt from certain U.S. information-reporting or backup-withholding rules. If you do not provide us with one of the enclosed Form W-8s, we will be required by the Internal Revenue Code to withhold 30% of all reportable distributions.

To complete your new Form W-8

Foreign investors will need to analyze their own legal structures to determine their status under the new regulations. To update our records, please review the following descriptions of the new Forms W-8 to determine the form that is appropriate for your account registration.

Form W-8BEN | Instructions

This form should be used by NRA investors certifying non-U.S. status and, if applicable, treaty eligibility. This includes individuals, foreign corporations and complex trusts.

  • This form should be completed by all beneficial owner(s) of the account, which means the person or persons who are owners of the income for U.S. tax purposes and who beneficially own the income.
  • If a joint account, EACH holder must complete a separate Form W-8BEN. The Form W-8BEN may be photocopied.
  • If a joint account and one shareowner is a U.S. citizen with a W-9 on file, the account has to be registered under that shareowners name and social security number. The account is subject to U.S. taxes.

Form W-8ECI | Instructions
(Effectively Connected Income)

This form should be used by beneficial owners with a U.S. office.

  • This form is used for claiming exemption from withholding on most U.S. income.
  • The form must include the payee's Tax Identification Number and description of income.

Form W-8EXP | Instructions
(Certificate of Foreign Government or Other Foreign Organization)

This form should be used by certain exempt beneficial owners. (This tells Invesco that the beneficial owner has special tax treatment under U.S. law.)

  • This form is mandatory for foreign governments.
  • This form can be used by international organizations.
  • This form is mandatory for tax-exempt organizations. These organizations must have a Tax Identification Number and either an IRS determination letter or opinion of U.S. Tax Counsel.

Form W-8IMY | Instructions
(Certificate of Foreign Government or Other Foreign Organization)

This form should be used by a foreign payee, not the beneficial owner of the income, to make representations regarding the status of the beneficial owners of the income and their eligibility for treaty benefits.

These are the types of intermediaries that can use this form:

  • Qualified intermediary (QI).
  • Non-Qualified intermediary (NQI)—must have supporting documentation.
  • Withholding foreign partnership (WFP).
  • Non-withholding foreign partnership (NWFP)—must have supporting documentation.
  • U.S. branch acting as intermediary.

If you have additional questions regarding this information, please call our Client Services department toll free at (800) 959-4246 between 7:00 a.m. and 6:00 p.m. Central time. We will be pleased to assist you.