Active NFFE status

March 20, 2020

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Q. We have several foreign companies that we pay and have collected their W-8BEN-E appropriately. Several of these companies claim their FATCA status as “Active NFFE” and then certify this in part XXV of the W-8BEN-E. From my understanding, Active NFFE’s are considered excepted NFFE’s not requiring withholding. Is this accurate? Additionally, my question is whether they must state a tax ID (either foreign or TIN) for us to not withhold? I understand that in cases where we are applying a treaty,…

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