Source: http://www.law.cornell.edu/uscode/text/26/1442?quicktabs_8=1
Timestamp: 2013-05-24 01:03:41
Document Index: 471614221

Matched Legal Cases: ['§ 1442', '§ 1442', '§ 1442', '§ 104', '§ 313', '§ 1', '§ 1906', '§ 127', '§ 474', '§ 1273', '§ 1810', '§ 1012', '§ 13237', '§ 411', '§ 411', '§ 420', '§ 1810', '§ 1273', '§ 474', '§ 127', '§ 130', '§ 342']

26 USC § 1442 - Withholding of tax on foreign corporations | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute
USC › Title 26 › Subtitle A › Chapter 3 › Subchapter A › § 1442	prevnext
26 USC § 1442 - Withholding of tax on foreign corporations
General rule In the case of foreign corporations subject to taxation under this subtitle, there shall be deducted and withheld at the source in the same manner and on the same items of income as is provided in section 1441 a tax equal to 30 percent thereof. For purposes of the preceding sentence, the references in section 1441
(b) tosections 871
(a)(1)(C) and (D) shall be treated as referring to sections 881
(a)(3) and (4), the reference in section 1441
(c)(1) tosection 871
(b)(2) shall be treated as referring to section 842 orsection 882
(a)(2), as the case may be, the reference in section 1441
(c)(5) tosection 871
(a)(1)(D) shall be treated as referring to section 881
(a)(4), the reference in section 1441
(c)(8) tosection 871
(a)(1)(C) shall be treated as referring to section 881
(a)(3), the references in section 1441
(c)(9) tosections 871
(h) and 871
(h)(3) or (4) shall be treated as referring to sections 881
(c) and 881
(c)(3) or (4), the reference in section 1441
(c)(10) tosection 871
(i)(2) shall be treated as referring to section 881
(d), and the references in section 1441
(c)(12) tosections 871
(a) and 871
(k) shall be treated as referring to sections 881
(a) and 881
(e) (except that for purposes of applying subparagraph (A) of section 1441
(c)(12), as so modified, clause (ii) of section 881
(e)(1)(B) shall not apply to any dividend unless the regulated investment company knows that such dividend is a dividend referred to in such clause).
Exemption Subject to such terms and conditions as may be provided by regulations prescribed by the Secretary, subsection (a) shall not apply in the case of a foreign corporation engaged in trade or business within the United States if the Secretary determines that the requirements of subsection (a) impose an undue administrative burden and that the collection of the tax imposed by section 881 on such corporation will not be jeopardized by the exemption.
Exception for certain possessions corporations (1)
Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands For purposes of this section, the term “foreign corporation” does not include a corporation created or organized in Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands or under the law of any such possession if the requirements of subparagraphs (A), (B), and (C) of section 881
(b)(1) are met with respect to such corporation.
with respect to which the requirements of subparagraphs (A), (B), and (C) of section 881
(b)(1) are met for the taxable year,
(Aug. 16, 1954, ch. 736, 68A Stat. 358; Pub. L. 89–809, title I, § 104(c),Nov. 13, 1966, 80 Stat. 1557; Pub. L. 92–178, title III, § 313(e),Dec. 10, 1971, 85 Stat. 528; Pub. L. 92–606, § 1(e)(2),Oct. 31, 1972, 86 Stat. 1497; Pub. L. 94–455, title XIX, § 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title I, §§ 127(e)(2), 130
(b), title IV, § 474(r)(29)(I),July 18, 1984, 98 Stat. 652, 661, 845; Pub. L. 99–514, title XII, § 1273(b)(2)(B), title XVIII, § 1810(d)(3)(E),Oct. 22, 1986, 100 Stat. 2596, 2825; Pub. L. 100–647, title I, § 1012(g)(7),Nov. 10, 1988, 102 Stat. 3501; Pub. L. 103–66, title XIII, § 13237(c)(5),Aug. 10, 1993, 107 Stat. 508; Pub. L. 108–357, title IV, §§ 411(a)(3)(B), 420
(b),Oct. 22, 2004, 118 Stat. 1504, 1513.)
2004—Subsec. (a). Pub. L. 108–357, § 411(a)(3)(B), substituted “the reference in section 1441
(c)(10)” for “and the reference in section 1441
(c)(10)” and inserted before period at end “, and the references in section 1441
(e)(1)(B) shall not apply to any dividend unless the regulated investment company knows that such dividend is a dividend referred to in such clause)”.
Subsec. (c). Pub. L. 108–357, § 420(b), designated existing provisions as par. (1), inserted heading, and added par. (2).
1993—Subsec. (a). Pub. L. 103–66substituted “871(h)(3) or (4)” for “871(h)(3)” and “881(c)(3) or (4)” for “881(c)(3)”.
1988—Subsec. (a). Pub. L. 100–647struck out “and” after “to section 881
(a)(3),” and inserted before period at end “, and the reference in section 1441
1986—Subsec. (a). Pub. L. 99–514, § 1810(d)(3)(E), substituted “871(h)” for “871(h)(2)”, “881(c)” for “881(c)(2)”, and “1441(c)(9)” for “1449(c)(9)”.
Subsec. (c). Pub. L. 99–514, § 1273(b)(2)(B), amended subsec. (c) generally, substituting reference to “certain possessions corporations” for reference to “certain Guam and Virgin Islands corporations” in heading, and in text extending “foreign corporation” exception so as to not include corporation created or organized in Guam, American Samoa, Northern Mariana Islands, or the Virgin Islands, and striking out par. (2) which declared that par. (1) not apply to tax imposed in Guam, and par. (3) which referred to sections 934 and 943a for tax imposed in Virgin Islands.
1984—Subsec. (a). Pub. L. 98–369, § 474(r)(29)(I), struck out “or section 1451” after “provided in section 1441” and struck out “; except that, in the case of interest described in section 1451 (relating to tax-free covenant bonds), the deduction and withholding shall be at the rate specified therein” after “a tax equal to 30 percent thereof”.
Pub. L. 98–369, § 127(e)(2), struck out “and” after “section 881
(a)(4),” and inserted “, and the references in section 1449(c)(9) tosections 871
(h)(2) and 871
(h)(3) shall be treated as referring to sections 881
(c)(2) and 881
Subsec. (c). Pub. L. 98–369, § 130(b), substituted provision relating to exception for certain Guam and Virgin Islands corporations for provision relating to exception for Guam corporations.
1976—Subsec. (b). Pub. L. 94–455struck out “or his delegate” after “Secretary” in two places.
1972—Subsec. (c). Pub. L. 92–606added subsec. (c).
1971—Subsec. (a). Pub. L. 92–178provided that reference in section 1441
1966—Pub. L. 89–809limited the withholding of tax at the 30 percent rate to items of fixed or determinable United States source income not effectively connected with the conduct of a trade or business in the United States and authorized the granting of an exemption from the withholding requirement in the case of a foreign corporation engaged in trade or business within the United States if the Secretary or his delegate determines that the withholding imposes an undue administrative burden and that the collection of the tax will not be jeopardized by the exemption.
Amendment by section 411(a)(3)(B) ofPub. L. 108–357applicable to dividends with respect to taxable years of regulated investment companies beginning after Dec. 31, 2004, see section 411(d)(1) ofPub. L. 108–357, set out as a note under section 871 of this title.
Amendment by section 420(b) ofPub. L. 108–357applicable to dividends paid after Oct. 22, 2004, see section 420(d) ofPub. L. 108–357, set out as a note under section 881 of this title.
Amendment by section 1273(b)(2)(B) ofPub. L. 99–514applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 ofPub. L. 99–514, set out as a note under section 931 of this title.
Amendment by section 1810(d)(3)(E) ofPub. L. 99–514effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 ofPub. L. 99–514, set out as a note under section 48 of this title.
Amendment by section 127(e)(2) ofPub. L. 98–369applicable to interest received after July 18, 1984, with respect to obligations issued after such date, in taxable years after such date, see section 127(g)(1) ofPub. L. 98–369, set out as a note under section 871 of this title.
Amendment by section 130(b) ofPub. L. 98–369applicable to payments made after Mar. 1, 1984, in taxable years ending after such date, see section 130(d) ofPub. L. 98–369, set out as a note under section 881 of this title.
Amendment by section 474(r)(29)(I) ofPub. L. 98–369not applicable with respect to obligations issued before Jan. 1, 1984, see section 475(b) ofPub. L. 98–369, set out as a note under section 33 of this title.
Section 2 ofPub. L. 92–606provided in part that: “The amendment made by section 1
(e)(2) [amending this section] shall take effect on the day after the date of enactment of this Act [Oct. 31, 1972].”
For provisions relating to withholding of tax on nonresident aliens and foreign corporations, see Pub. L. 97–248, title III, § 342,Sept. 3, 1982, 96 Stat. 635, set out as a note under section 1441 of this title.