W-8BEN-E for an Integral Part of a Foreign Government: Status and Instructions

Form W-8BEN-E distinguishes between two types of government organizations: those that are an integral part of the government and those that are controlled by it. The "Integral Part" status is intended for institutions that function as a direct extension of the government, not as separate legal entities.

This guide explains who qualifies as an "Integral Part" of a foreign government and provides step-by-step instructions for completing the related sections of Form W-8BEN-E.

Who Qualifies as an 'Integral Part'?

Unlike a government-controlled company, an Integral Part is any person, agency, or instrumentality constituting a governing authority of a foreign government. The key difference is the lack of a separate legal personality from the government itself.

• Ministries (e.g., Ministry of Finance, Ministry of Foreign Affairs).
• Government departments and agencies.
• A country's central bank, if it is not a separate legal entity.

The net earnings of such an organization must be credited to its own account or to accounts of the government, and no portion of its income may inure to the benefit of any private person.

Step-by-Step Path for an "Integral Part" of Government on Form W-8BEN-E

For an institution that is a direct extension of the government, the form-filling process is clear and highlights its unique status.

Step 1: Choose Chapter 3 Status

In Part I, Line 4, just like for a controlled organization, you check the box next to "Foreign government." This category covers both types of government structures.

Step 2: Choose the Corresponding FATCA Status in Chapter 4

This is where the key distinction is made. In Part I, Line 5, you must choose the status that accurately reflects your nature: "Excepted nonfinancial government entity - integral part." This directly indicates to the withholding agent that you are an integral part of the government, not a separate controlled company.

Step 3: Complete Part XIII

Your choice in the previous steps automatically requires you to complete Part XIII — "Foreign Government or Other Foreign Organization of a Foreign Government." This section serves for final certification. Here you certify that your organization is an integral part of a foreign government and meets other requirements, specifically that your income is not used for the benefit of private persons and you are not engaged in commercial financial activities.

Conclusion

The path for an integral part of a government on Form W-8BEN-E logically follows from its status: choosing "Foreign government" in Chapter 3 leads to the specific choice of "integral part" in Chapter 4 and is completed by certifying this in Part XIII. The main thing is to clearly understand the difference between functioning as part of the government apparatus and operating as a separate, albeit controlled, legal entity.