Washington – Exemption for Purchases of Standard Financial Information

SALT Report 2997 – The Washington Department of Revenue issued a special notice regarding purchases of standard financial information by qualifying international investment management companies.  The notice states that pursuant to Engrossed Substitute Senate Bill 5882 the purchase and use of standard financial information by a qualifying international investment management company is exempt from retail sales and use tax.

The legislation defines a “qualifying international investment management company” as a business that:

1) Is primarily engaged in the business of providing investment management services, and

2) Has gross income that is at least 10% derived from providing investment management services to:

  • Persons or collective investment funds residing outside the United States, or
  • Collective investment funds with at least 10% of their investments located outside the United States


Business that qualify for the exemption cannot claim the sales and use tax exemption once they have purchased standard financial information with a total selling price of more than $15 million during the calendar year in which they have claimed the exemption. Sellers who make these tax-exempt sales will not be held liable for uncollected sales tax on its sales to a qualifying company that has exceeded the $15 million limitation.

The notice also discusses what qualifies as standard financial information, requirements for sellers, and reporting instructions.

This exemption is effective October 1, 2013 and will expire on July 1, 2021.

For Further Information

Washington Department of Revenue – Special Notice


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