Tax relief at source on international investments

Form W-8BEN (for individuals) and Form W-8BEN-E (for entities) are IRS forms used by non-U.S. persons to certify their foreign status and, where applicable, claim a reduced rate of U.S. withholding tax under an income tax treaty.

A separate Form W-8BEN must be given to each withholding agent from whom the investor receives payments, rather than a single form covering all accounts.

The form must be signed and dated by the beneficial owner of the income, or by an agent with legal authority to act on the person's behalf, in which case a power of attorney must accompany the form.

The form generally remains valid for three years, or until a change in circumstances affects the accuracy of the information provided, at which point the withholding agent must obtain a new form.

The form must be given to the withholding agent before the payment is made, credited to the investor's account, or allocated. Failure to provide it when requested may lead to withholding at the default 30% rate.

A withholding agent may allow the form to be provided with an electronic signature and the form itself is retained by the withholding agent — it is not sent to the IRS.

V2 forms declare a shareholder's eligibility for exemption from DWT based on their tax residency and beneficial ownership of the dividend income. Form V2A provides exemption from Irish Dividend Withholding Tax (DWT) for a qualifying non-resident individual, Form V2B for a qualifying non-resident company and Form V2C for a qualifying non-resident person not being an individual or a company.

Only one form is required per investor, matching their status as an individual, company, or other entity type. Each form is provided in two parts: Part 2 must be completed by the tax authority of the country in which the shareholder is resident, before the form is returned to the shareholder.

The non-resident shareholder completes their own declaration on the relevant form. Forms V2A and V2C must additionally be certified by the tax authority of the country in which the qualifying non-resident is resident, confirming both residency and beneficial ownership.

The exemption is valid until 31 December of the fifth year following the year the exemption was issued. If the shareholder wants the DWT exemption to continue beyond this point, the relevant form must be renewed before the end of this period.

Once certified by the shareholder's local tax authority, the form must be returned to the shareholder, who then forwards it to the paying company, Qualifying Intermediary, or Authorised Withholding Agent in advance of the relevant dividend payment, so the exemption can be applied at source.

Where it is not practical for the tax authority to certify the form directly using the certificate of residence provided, a letter to the same effect from the tax authority will suffice, but a translation must accompany it if not already in English. The certified original (or equivalent authority letter) is what paying agents and withholding agents rely on to apply exemption at source — copies alone are not generally accepted for this purpose.

Form NR301 allows non-resident individuals to declare their eligibility for reduced withholding tax rates on Canadian-source income, establishing residency in a treaty country and certifying beneficial ownership. Where the non-resident is a corporation, partnership, or hybrid entity, Form NR302 or NR303 is used instead.

A single completed form (NR301, NR302, or NR303, as applicable) is provided per beneficial owner.

The non-resident taxpayer (or an authorized person acting on their behalf) completes and signs the declaration, certifying their country of residence and beneficial ownership of the income.

The declaration expires when there is a change in the effective rate of withholding, or three years from the end of the calendar year in which it was signed, whichever comes first.

The form is submitted to the Canadian payer, who will apply a reduced rate of withholding tax if the form supports it; otherwise, the highest rate is withheld and remitted to the CRA. It should therefore be in place before the relevant income is paid or credited.

There's no requirement for an original signed paper document to be certified by a foreign tax office. A signed declaration is generally sufficient.

Form 5000 (Certificate of Residence) and Form 5001 are the documents used to obtain relief at source on French-sourced dividends. Form 5000 confirms the beneficial owner's tax residency under the relevant double taxation treaty, while Form 5001 provides all the details necessary for the calculation of the relief at source, including the dividend amounts involved and the treaty rate being claimed.

Each form is completed in triplicate: two versions in the foreign language most appropriate to the investor's country of residence, and one version in French. The information across all three copies is identical.

Form 5000 must be signed by both the beneficial owner and, where certification applies, the beneficial owner's local tax authorities. Where a third party completes the forms on the investor's behalf, a Power of Attorney must also be provided.

Both forms must therefore be renewed annually to maintain uninterrupted relief at source.

A Form 5000 must be filed no later than 10 business days before the first dividend payment date to which it applies and must be dated before that payment. Form 5001 is submitted alongside it, as an appendix, before the same deadline.

The local tax office retains one foreign-language copy of Form 5000 and its appendix forms and returns the other two, certified, to the investor. For any Power of Attorney used to complete the forms on the investor's behalf, the original is generally required.

The certificado de residencia fiscal is a certificate issued by Spain's tax authority (AEAT) attesting that a person or company is resident under domestic law or under a specific double tax treaty. It is used to claim reduced withholding rates on dividends, interest and royalties under treaty provisions. It is also used to prove residency to foreign tax authorities.

The certificate is issued as a single document per request. Investors typically request one certificate per tax year, though additional certificates can be requested where more than one paying agent or intermediary needs a copy on file.

The investor (or their representative) applies to the AEAT for the certificate.

Certificates are generally issued for a specific tax year, meaning investors need to renew the certificate annually to keep relief at source in place without interruption.

The certificate should be obtained and provided to the paying agent or intermediary before the relevant dividend payment date, so the treaty-reduced rate can be applied rather than the standard domestic rate.

An original, AEAT-issued certificate is generally required by paying agents and intermediaries, since the document itself is the authority's certification of residency status.

Mod. 21-RFI is the form used to claim total or partial exemption from Portuguese withholding tax, covering dividend, interest and royalty income paid to non-residents under the relevant double taxation convention.

The form must be filled in duplicate by the beneficial owner (or their legal representative), with each copy sent, accompanied by proof of residence, to the entity responsible for withholding.

The form is completed by the beneficial owner of the income (or their legal representative in Portugal), with a section certified by the tax authority of the beneficial owner's country of residence, confirming residency under the relevant double taxation convention.

It is valid for a maximum period of one year and expires on the last day of the period identified in the accompanying tax residence certificate. Both documents must therefore be renewed together annually.

Renewed forms must be received in good time to obtain relief at source on dividend payments made during the relevant year, with an annual renewal deadline set by the withholding agent to avoid a gap in relief.

The form is completed in duplicate, with each copy accompanied by proof of residence under the relevant tax convention. The accompanying certificate of residence should be an original.