1 See Institute Memorandum to Tax Committee No. 40-98, Operations Committee No. 46-98, Transfer Agent Advisory
Committee No. 87-98, Bank and Trust Advisory Committee No. 16-98, dated December 23, 1998.
[10693]
February 3, 1999
TO: TAX COMMITTEE No. 3-99
OPERATIONS COMMITTEE No. 4-99
TRANSFER AGENT ADVISORY COMMITTEE No. 12-99
BANK AND TRUST ADVISORY COMMITTEE No. 3-99
RE: FINAL REGULATIONS ON NONRESIDENT ALIEN WITHHOLDING
______________________________________________________________________________
Attached to this memorandum is a detailed outline discussing the final withholding tax
regulations issued by the Internal Revenue Service (“IRS”) which apply to certain US source income paid
after December 31, 1999 to persons who are neither citizens nor residents of the United States
(“nonresident aliens” or “NRAs”). The attached outline also discusses (1) the transition rules pursuant
to which new IRS Form W-8 withholding certificates will replace current IRS Forms W-8, 1001, 4224
and 8709 and (2) guidance issued by the IRS regarding procedures whereby certain foreign persons, such
as banks and brokers, and foreign branches of US banks can become “qualified intermediaries” for
withholding tax and information reporting purposes.
As we previously informed you, the Institute will hold a meeting on Tuesday, February 9, 1999
to discuss the impact of the final regulations on regulated investment companies and the transition rules
for the new Form W-8 withholding certificates.1
Any questions regarding the attached outline should be directed to the undersigned at
202.371.5436 or dflores@ici.org. Inquiries regarding procedures to attend the February 9, 1999 meeting
should be directed to the Institute’s Gloria Davis at 202.371.5407 or gdavis@ici.org.
Deanna J. Flores
Assistant Counsel
Attachment