Qualified Intermediary
http://www.irs.gov/Businesses/Corporations/Qualified-Intermediaries-%28QI%29
Type
Individual
Jurisdiction
U.S.
Sponsor/Regulator
U.S. Internal Revenue Service
Description
A Qualified Intermediary (QI) is an eligible person that enters into a QI Agreement with the IRS and that acts as a QI under such Agreement. Generally, under the QI Agreement, the QI agrees to assume certain documentation and withholding responsibilities in exchange for simplified information reporting for its foreign account holders and the ability not to disclose proprietary account holder information to a withholding agent that may be a competitor.
Key Facts
The following entities may enter into a QI Agreement: A foreign financial institution or foreign clearing organization (other than a U.S. branch or office), A foreign branch or office of a U.S. financial institution or clearing organization, A foreign corporation, but only for the purpose of claiming treaty benefits for its shareholders, or Any other entity acceptable to the IRS, determined on a case-by-case basis. QI’s must register and receive a QI/PFFI agreement in order to retain their QI status.
Additional Information
Qualified Intermediary Frequently Asked Questions