W-8BEN-E for Government-Controlled Organizations: Status and Instructions

Form W-8BEN-E has specific provisions for organizations controlled by foreign governments. While not as common as a corporation or partnership, this status requires a clear understanding of control criteria and proper form completion to apply the correct U.S. tax rules.

This guide explains who qualifies as a 'Foreign government-controlled entity' and provides step-by-step instructions for completing the related sections of Form W-8BEN-E.

Who Qualifies as a 'Foreign Government-Controlled Entity'?

It's important to understand that this status is not for any state-owned company. According to U.S. rules, a foreign government-controlled entity is a legal entity separate from the government but in which the government has significant control.

• Direct or indirect ownership: The foreign government owns, directly or indirectly, more than 50% of the voting power or value of the organization's stock.
• Effective control: Even without 50% ownership, the foreign government may have effective control over the board of directors or other governing body.

Classic examples might include national energy companies, state investment funds, or telecommunications operators where the government is the majority shareholder. Form W-8BEN-E requires a clear certification of this connection.

Step-by-Step Path for a Government-Controlled Organization on Form W-8BEN-E

For such a specific institution, the form-filling process is very clear and leads to a special section designed specifically for it.

Step 1: Choose Chapter 3 Status

In Part I, Line 4, you check the box for 'Foreign government.' This is the primary identification of your institution according to tax rules.

Step 2: Choose the Corresponding FATCA Status in Chapter 4

Next, in Part I, Line 5, you must choose the appropriate status for FATCA purposes. For a government-controlled organization, this step is simple—you choose the status 'Excepted nonfinancial government-controlled entity.'

Step 3: Complete Part XIII

This choice automatically requires you to complete Part XIII — 'Foreign Government or Other Foreign Organization of a Foreign Government.' This section is your main field for certification. Here you need to confirm that your organization meets the following criteria:

Conclusion

• It is an integral part or a controlled entity of a foreign government.
• Its earnings do not benefit any private person.
• Its activities do not constitute commercial financial activities (such as banking or insurance).

The path for a foreign government-controlled organization on Form W-8BEN-E is direct and logical: choosing the 'Foreign government' status in Chapter 3 leads to a corresponding choice in Chapter 4 (as a FATCA exception), which in turn requires completing Part XIII for final certification. The key point in this process is to confirm that your organization is indeed controlled by a foreign government and does not engage in commercial financial activities.