A QDD is a qualified intermediary that is an eligible entity that agrees to meet the requirements of Regulations section 1.1441-1(e)(6)(i) and the QI agreement. An eligible entity is defined in Regulations section 1.1441-1(e)(6)(ii).
To act as a QDD, the home office or branch, as applicable, must qualify and be approved for QDD status and must represent itself as a QDD on its Form W-8IMY and separately identify the home office or branch as a recipient on a withholding statement (if required). Each home office or branch that obtains QDD status is treated as a separate QDD.
Chapter 3, 4 Responsibility:
A QDD must assume primary withholding responsibility for purposes of Chapters 3 and 4 for all payments it makes as a QDD.
Treas. Reg. s. 1.1441-1(e)(6)(i) – Requirements to be a QDD Treas. Reg. s. 1.1441-1(e)(6)(ii) – Definition of eligible entity QI Agreement See Page 6