Central Bank of Issue Status on Form W-8BEN-E: A Guide for Financial Institutions

Form W-8BEN-E contains a number of highly specialized statuses designed for specific types of organizations. One such status is 'Central Bank of Issue.' It is not intended for commercial banks or other financial companies and has a clearly defined application.

In this article, we'll look at who should choose this status and the specific steps required on the form after this choice is made.

What is a Central Bank of Issue?

A Central Bank of Issue is a state financial institution responsible for managing a country's currency, money supply, and interest rates. It is the main bank of the state, performing governmental functions rather than commercial activities. Examples include the European Central Bank, the Bank of England, or the National Bank of Poland.

This status on Form W-8BEN-E is intended exclusively for such institutions acting in their official capacity.

Key Steps for Filling Out W-8BEN-E for a Central Bank

For a central bank, the form-filling process follows a clear sequence that links three different sections.

Step 1: Select Chapter 3 Status

In Part I, Line 4, you must check the box next to 'Central Bank of Issue.' This identifies your organization for basic U.S. tax purposes.

Step 2: Select the Corresponding FATCA Status in Chapter 4

Your choice in Line 4 directly impacts the selection in Line 5. Here, you must choose the appropriate FATCA status, which is 'Foreign government, government of a U.S. possession, or foreign central bank of issue.' This choice is critical as it leads to the next mandatory step.

Step 3: Complete Part XIII

The form clearly indicates that organizations with this FATCA status must complete Part XIII — 'Foreign Government, Government of a U.S. Possession, or Foreign Central Bank of Issue'. This section contains one key certification. By checking the box in Line 27, you certify that your institution:

Is it necessary to complete the tax treaty benefits section (Part III)?

This certification ensures that benefits are granted to the central bank acting in its official, non-governmental capacity. Unlike partnerships or trusts, choosing the 'Central Bank of Issue' status does not require you to answer the question about hybrid status in Line 5. However, income of central banks from certain U.S. investments is often exempt from taxation under U.S. domestic law (e.g., section 895 of the Tax Code) or under the terms of tax treaties. If applying such benefits requires referencing a specific treaty, it may be necessary to complete Part III. This question should be clarified with the legal department.

Conclusion

• Is the beneficial owner of the payment.
• Is not engaged in commercial financial activities (such as an insurance company, depository institution, or custodial institution) with respect to the payments for which this form is submitted.

The procedure for filling out W-8BEN-E for a central bank is straightforward but requires strict adherence to the sequence: the choice of status in Chapter 3 determines the choice of status in Chapter 4, which in turn requires the completion of Part XIII. This ensures the correct identification of your institution and the application of the appropriate tax regulations.