The tax authorities in the USA usually deduct the US withholding tax of currently 30%. This also applies to remuneration which is passed on to GVL as a fiduciary trustee and then passed on by us to GVL rights holders.

Despite intensive efforts, GVL has not received a so-called Qualified Intermediary (QI) status yet which would have spared our rights holders from being subject to individual tax exemption procedures. In this context, we would like to refer to the following procedure:
Every non-US citizen has, in principle, the option to request an individual tax relief/tax exemption for the US withholding tax from the US Federal tax authorities, the IRS (Internal Revenue Service) in the USA. For this, the IRS must receive a hardcopy of the so-called W-8 forms once they have been completed, dated and signed in person.

Each group requires a corresponding form:

Natural persons (usually individual performers) require the tax form W-8BEN. For this purpose, the German tax identification number (tax ID) is absolutely mandatory, it is, however, not necessary to indicate a US tax number for private persons (Individual Taxpayer Identification Number, ITIN).

For corporate entities (such as AG, eG, GmbH, KGaA and communities of heirs) the tax form W-8BEN-E is applicable. In this case, it is absolutely mandatory to submit the German tax number or the US tax number (EIN).
For private companies (AG & Co. KG, GbR, GmbH & Co. KG, KG, OHG), the tax form W-8IMY shall apply. In this context, it is absolutely mandatory to submit the US tax number (EIN). Since private companies in the USA are also deemed as transparent partnerships from a tax point of view, all partners or shareholders of the private company must also complete the tax forms W-8BEN-E or W-8BEN with all the relevant requirements.

Please click here for further information. Please understand that GVL cannot provide any further advice on this matter. We recommend that you consult an expert if you have any further questions.