Our subscribers have been enjoying a look at the extensive differences between last month's new Form W-8BEN-E (for entities) and previous versions. Today, we will briefly examine the two key differences between the May 2013 version of the Form W-8BEN (for individuals) and its 2012 variant.

Again, and for your own use, please note that the changes discussed below are an adjunct to those we have previously highlighted for last year's version (and yes I know this can be confusing but the newest changes were very much needed given the new FATCA final regulations released in January).

With that being said, the big differences between this May's Draft Form W-8BEN (see below) and last year's is that the newest draft now includes a date of birth field and new language in the “Certification” section. The latter is very important as it requires that the signatory affirm that they will submit a new form within 30 days of any change that would make any certification on the form incorrect. If you have been paying attention to the development of the FATCA (Foreign Account Tax Compliance Act)  rules and regulations then these changes should not be surprising.

For instance, the new date of birth field flows from U.S. entry into a number of reciprocal Intergovernmental Agreements (“IGAs”) with other countries to help in putting in place the new FATCA regulatory framework. This is because the reciprocal IGAs require that the U.S. agrees to provide certain income information collected on residents of the other jurisdiction that have accounts in U.S. financial institutions. The date of birth information is needed if the individual in question lacks a foreign tax identifying number.

As to the 30 day notification for changes that affect the validity of any certification on the form; this should also not be a surprise if you have read the FATCA final regulations (as they include the same 30 day requirement). 

So, there you have it - a couple of changes, albeit important ones. Nevertheless, as our subscribers saw earlier this week the Form W-8BEN-E (for entities) featured a whole slew of new changes even in comparison to its first iteration released last summer. Coupled with the release of the new Draft Form W-9, the 1042/1042-S, and the not yet released other new W-8 drafts (with the newest W-8IMY draft expected to feature a number of changes) and we have quite a busy remainder of the year for withholding agents such as yourself preparing to implement a very new documentation, validation, and reporting regime.