[Title 26 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 1999 Edition]
[From the U.S. Government Printing Office]
26
Internal Revenue
[[Page i]]
PARTS 500 TO 599
Revised as of April 1, 1999
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF APRIL 1, 1999
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON: 1999
For sale by U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 26:
Chapter I--Internal Revenue Service, Department of
the Treasury (Continued)............................ 3
Finding Aids:
Table of CFR Titles and Chapters........................ 157
Alphabetical List of Agencies Appearing in the CFR...... 175
Table of OMB Control Numbers............................ 185
List of CFR Sections Affected........................... 203
[[Page iv]]
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Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 26 CFR 502.1 refers
to title 26, part 502,
section 1.
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[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
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Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
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[[Page vi]]
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[[Page vii]]
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Raymond A. Mosley,
Director,
Office of the Federal Register.
April 1, 1999.
[[Page ix]]
THIS TITLE
Title 26--Internal Revenue is composed of nineteen volumes. The
contents of these volumes represent all current regulations issued by
the Internal Revenue Service, Department of the Treasury, as of April 1,
1999. The first twelve volumes comprise part 1 (Subchapter A--Income
Tax) and are arranged by sections as follows: Secs. 1.0-1-1.60;
Secs. 1.61-1.169; Secs. 1.170-1.300; Secs. 1.301-1.400; Secs. 1.401-
1.440; Secs. 1.441-1.500; Secs. 1.501-1.640; Secs. 1.641-1.850;
Secs. 1.851-1.907; Secs. 1.908-1.1000; Secs. 1.1001-1.1400 and
Sec. 1.1401 to end. The thirteenth volume containing parts 2-29,
includes the remainder of subchapter A and all of Subchapter B--Estate
and Gift Taxes. The last six volumes contain parts 30-39 (Subchapter C--
Employment Taxes and Collection of Income Tax at Source); parts 40-49;
parts 50-299 (Subchapter D--Miscellaneous Excise Taxes); parts 300-499
(Subchapter F--Procedure and Administration); parts 500-599 (Subchapter
G--Regulations under Tax Conventions); and part 600 to end (Subchapter
H--Internal Revenue Practice).
The OMB control numbers for Title 26 appear in Sec. 602.101 of this
chapter. For the convenience of the user, Sec. 602.101 appears in the
Finding Aids section of the volumes containing parts 1 to 599.
For this volume, Melanie L. Marcec was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Frances D. McDonald, assisted by Alomha S. Morris.
[[Page x]]
[[Page 1]]
TITLE 26--INTERNAL REVENUE
(This book contains Parts 500 to 599)
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Part
Chapter I--Internal Revenue Service, Department of the
Treasury (Continued)...................................... 502
[[Page 3]]
CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
(Continued)
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Editorial Note: IRS published a document at 45 FR 6088, Jan. 25, 1980,
deleting statutory sections from their regulations. In Chapter I cross
references to the deleted material have been changed to the
corresponding sections of the IRS Code of 1954 or to the appropriate
regulations sections. When either such change produced a redundancy, the
cross reference has been deleted. For further explanation, see 45 FR
20795, Mar. 31, 1980.
SUBCHAPTER G--REGULATIONS UNDER TAX CONVENTIONS
Part Page
500-501 [Reserved]
502 Greece...................................... 5
503 Germany..................................... 14
504-507 [Reserved]
509 Switzerland................................. 24
510-512 [Reserved]
513 Ireland..................................... 50
514 France...................................... 63
515 [Reserved]
516 Austria..................................... 99
517 Pakistan.................................... 111
518-519 [Reserved]
520 Sweden...................................... 120
521 Denmark..................................... 133
[[Page 5]]
SUBCHAPTER G--REGULATIONS UNDER TAX CONVENTIONS
PARTS 500-501 [RESERVED]
PART 502--GREECE--Table of Contents
Subpart--Withholding of Tax
Sec.
502.1 Introductory.
502.2 Dividends.
502.3 Interest.
502.4 Natural resource royalties and real property rentals.
502.5 Patent and copyright royalties.
502.6 Private pensions and life annuities.
502.7 Release of excess tax withheld at source.
502.8 Information to be furnished in ordinary course.
502.9 Beneficiaries of a domestic estate or trust.
502.10 Refund of excess tax withheld during 1953.
Authority: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805.
Source: Treasury Decision 6109, 19 FR 6694, Oct. 19, 1954, as
amended at 25 FR 14021, Dec. 31, 1960, unless otherwise noted.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997, part
502 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--General Income Tax
Sec. 502.1 Introductory.
(a) The income tax convention and protocol between the United States
and Greece, signed February 20, 1950, and April 20, 1953, respectively,
and proclaimed by the President of the United States on January 15,
1954, referred to in this part as the convention, provides in part as
follows effective January 1, 1953:
Article I
(1) The taxes which are the subject of the present Convention are:
(a) In the case of the United States of America: the Federal income
tax, including surtaxes (hereinafter referred to as United States tax).
(b) In the case of the Kingdom of Greece: the income tax, including
the schedular or analytical tax, the complementary tax and the
professional or business tax (hereinafter referred to as Greek tax).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed by either Contracting State
subsequently to the date of signature of the present Convention.
Article II
(1) In the present Convention, unless the context otherwise
requires--
(a) The term ``United States'' means the United States of America
and when used in a geographical sense means the States, the Territories
of Alaska and Hawaii, and the District of Columbia.
(b) The term ``Greece'' means the territories of the Kingdom of
Greece.
(c) The term ``United States Corporation'' means a corporation,
association or other like entity created or organized in or under the
laws of the United States.
(d) The term ``Greek Corporation'' means a legal entity established
under the laws of Greece.
(e) The terms ``corporations of one Contracting State'' and
``corporation of the other Contracting State'' mean a United States
corporation or a Greek corporation, as the context requires.
(f) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on in the United States by
a citizen or resident of the United States or by a United States
corporation.
(g) The term ``Greek Enterprise'' means an industrial or commercial
enterprise or undertaking carried on in Greece by a subject or resident
of Greece or by a Greek corporation.
(h) The terms ``enterprise of one of the Contracting States'' and
``enterprise of the other Contracting State'' mean a United States
enterprise or a Greek enterprise, as the context requires.
(i) The term ``permanent establishment'', when used with respect to
an enterprise of one of the Contracting States, means a branch, factory
or other fixed place of business, but does not include an agency unless
that agent has, and habitually exercises, a general authority to
negotiate and conclude contracts on behalf of such enterprise or has a
stock of merchandise from which he regularly fills orders on behalf of
such enterprise. An enterprise of one of the Contracting States shall
not be deemed to have a permanent establishment in the other Contracting
State merely because it carries on business dealings in such other
Contracting State through a bona fide commission agent, broker or
custodian acting in the ordinary course of his business as such. The
fact that an enterprise of one of the Contracting States maintains in
the other Contracting
[[Page 6]]
State a fixed place of business exclusively for the purchase of goods or
merchandise shall not of itself constitute such fixed place of business
a permanent establishment of such enterprise. When a corporation of one
Contracting State has a subsidiary corporation which is a corporation of
the other Contracting State or which is engaged in trade or business in
such other Contracting State, such subsidiary corporation shall not,
merely because of that fact, be deemed to be a permanent establishment
of its parent corporation.
(j) The term ``competent authority'' or ``competent authorities''
means, in the case of the United States, the Commissioner of Internal
Revenue or his duly authorized representative; in the case of Greece,
the General Director of Direct Taxes, or his duly authorized
representative.
(2) In the application of the provisions of the present Convention
by either of the Contracting States, any term which is not defined in
the present Convention shall, unless the context otherwise requires,
have the meaning which that term has under the laws of such Contracting
State relating to the taxes which are the subject of the present
Convention.
* * * * *
Article VI
(1) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) received from sources within the United
States by a resident or corporation of Greece not engaged in trade or
business in the United States through a permanent establishment therein,
shall be exempt from United States tax; but such exemption shall not
apply to such interest paid by a United States corporation to a Greek
corporation controlling, directly or indirectly, more than 50 percent of
the entire voting power in the paying corporation.
(2) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) received from sources within Greece by a
resident or corporation of the United States not engaged in trade or
business in Greece through a permanent establishment therein, shall be
exempt from Greek tax but only to the extent that such interest does not
exceed 9 percent per annum; but such exemption shall not apply to such
interest paid by a Greek corporation to a United States corporation
controlling, directly or indirectly, more than 50 percent of the entire
voting power in the paying corporation.
Article VII
Royalties for the right to use copyrights, patents, designs, secret
processes and formulae, trade marks and other analogous property, and
royalties (including rentals), (other than those in respect of motion
picture films) for the use of industrial, commercial or scientific
equipment, derived from sources within one of the Contracting States by
a resident or corporation of the other Contracting State not engaged in
trade or business in the former State through a permanent establishment
therein, shall be exempt from tax by the former State.
Article VIII
A resident or corporation of one of the Contracting States, deriving
from sources within the other Contracting State royalties in respect to
the operation of mines, quarries, or other natural resources, or rentals
from real property, may elect for any taxable year to be subject to the
tax of such other Contracting State on the basis of net income as
determined under the laws of such other Contracting State during such
taxable year.
Article IX
Dividends and interest paid by a Greek corporation shall be exempt
from United States tax except where the recipient is a citizen, resident
or corporation of the United States.
* * * * *
Article XI
* * * * *
(2) Private pensions and life annuities derived from within one of
the Contracting States by an individual who is a resident of the other
Contracting State shall be exempt from taxation by the former
Contracting State.
(3) The term ``pensions'' as used in this Article means periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
(4) The term ``life annuities'' as used in this Article means a
stated sum payable periodically at stated times during life, or during
life, an obligation to make the payments in return for adequate and full
consideration in money or money's worth.
* * * * *
Article XV
(1) The authorities of each of the Contracting States, in accordance
with the practices of that State, may prescribe regulations necessary to
carry out the provisions of the present Convention.
(2) With respect to the provisions of the present Convention
relating to exchange of information and mutual assistance in the
collection of taxes, the Contracting States may, in accordance with
their respective
[[Page 7]]
practices, prescribe rules concerning matters of procedure, forms of
application and replies thereto, conversion of currency, disposition of
amounts collected, minimum amounts subject to collection, and related
matters.
Article XVI
(1) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance accorded by the laws of one of the Contracting States in the
determination of the taxes imposed by such State.
(2) Should any difficulty or doubt arise as to the interpretation or
application of the present Convention, the competent authorities of the
Contracting States shall undertake to settle the question by mutual
agreement.
(3) The citizens or subjects of one of the Contracting States shall
not, while resident in the other Contracting State, be subjected therein
to other or more burdensome taxes than are the citizens or subjects of
such other Contracting State residing in its territory. The term
``citizens'' or ``subjects'', as used in this Article, includes all
legal persons, partnerships and associations deriving their status from,
or created or organized under, the laws in force in, the respective
Contracting States. In this Article the word ``taxes'' means taxes of
every kind or description whether national, federal, state, provincial
or municipal.
* * * * *
Article XVIII
The competent authorities of the Contracting States shall exchange
such information (being information which such authorities have at their
disposal) as is necessary for carrying out the provisions of the present
Convention or for the prevention of fraud or the administration of
statutory provisions against legal avoidance in relation to the taxes
which are the subject of the present Convention. Any information so
exchanged shall be treated as secret and shall not be disclosed to any
person other than those concerned with the assessment, and collection of
the taxes which are the subject of the present Convention. No
information shall be exchanged which would disclose a technical secret,
or process relating to trade, industry, business, or a profession.
* * * * *
Article XX
(1) In no case shall the provisions of Article XVIII and XIX be
construed so as to impose upon either of the Contracting States the
obligation:
(a) To carry out administrative measures at variance with the
regulations and practice of either Contracting State, or
(b) To supply information which is not procurable under its own
legislation or that of the State making application.
(2) The State to which application is made for information or
assistance shall comply as soon as possible with the request addressed
to it. Nevertheless, such State may refuse to comply with the request
for reasons of public policy or if compliance would involve disclosure
of a technical secret or process relating to trade, industry, business,
or a profession. In such case it shall inform, as soon as possible, the
State making the application.
Article XXI
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Athens as soon as possible.
(2) The present Convention shall become effective on the first day
of January of the year in which the exchange of the instruments of
ratification takes place. It shall continue effective for a period of
five years beginning with that date and indefinitely after that period,
but may be terminated by either of the Contracting States at the end of
the five-year period or at any time thereafter, provided that at least
six months' prior notice of termination has been given, the termination
to become effective on the first day of January following the expiration
of the six-month period.
* * * * *
(b) As used in this part, any term defined in the convention shall
have the meaning so assigned to it; any term not so defined shall,
unless the context otherwise requires, have the meaning which such term
has under the internal revenue laws.
Sec. 502.2 Dividends.
(a) Dividends paid on or after January 1, 1953, by a Greek
corporation are exempt from United States tax under the provisions of
Article IX of the convention if the recipient is not a citizen,
resident, or corporation of the United States. Such dividends are,
therefore, not subject to the withholding of United States tax at
source.
(b) The convention does not change the rate of United States tax
imposed pursuant to sections 871, 881, and 882 of the Internal Revenue
Code of 1954 upon dividends paid by a corporation other
[[Page 8]]
than a Greek corporation. The withholding of United States tax with
respect to such dividends derived from sources within the United States
by nonresident aliens who are residents of Greece, or by Greek
corporations, is not changed by the convention.
Sec. 502.3 Interest.
(a) General. (1) Interest paid on or after January 1, 1953, by a
Greek corporation is exempt from United States tax under the provisions
of Article IX of the convention if the recipient is not a citizen,
resident, or corporation of the United States. Interest paid to such
recipients is, therefore, not subject to the withholding of United
States tax at source.
(2) Interest (other than interest falling within the scope of
paragraph (b) of this section) on bonds, securities, notes, debentures,
or on any other form of indebtedness, including interest on obligations
of the United States, obligations of instrumentalities of the United
States, and mortgages and bonds secured by real property, which is paid
by a person other than a Greek corporation and which is received from
sources within the United States on or after January 1, 1953, by a
nonresident alien (including a nonresident alien individual, fiduciary,
and partnership) who is a resident of Greece, or by a Greek corporation,
is exempt from United States tax under the provisions of Article VI (1)
of the convention if such alien or corporation at no time during the
taxable year in which such interest is received has engaged in trade or
business within the United States through a permanent establishment
situated therein. Such interest is, therefore, not subject to the
withholding of United States tax at source. As to what constitutes a
permanent establishment, see Article II (1)(i) of the convention.
(b) Exemption not applicable to interest paid by subsidiary
corporation to its parent corporation. Under the exception contained in
Article VI (1) of the convention any interest received from sources
within the United States and paid by a domestic corporation to a Greek
corporation is not exempt from United States tax if such Greek
corporation controls, directly or indirectly, at the time the interest
is paid more than 50 percent of the entire voting power of all classes
of stock of such domestic corporation. The exemption from United States
tax provided by Article VI (1) of the convention does not, therefore,
apply to such interest paid by such domestic corporation.
(c) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of coupon bond
interest to which paragraph (a)(2) of this section is applicable, the
nonresident alien who is a resident of Greece, or the Greek corporation,
shall for each issue of bonds file Form 1001-G in duplicate when
presenting the interest coupons for payment. This form shall be signed
by the owner of the interest, trustee, or agent and shall show the name
and address of the obligor, the name and address of the owner of the
interest, and the amount of the interest. It shall contain a statement
(i) that the owner is a resident of Greece, or is a Greek corporation,
(ii) that the owner is not engaged in trade or business within the
United States through a permanent establishment situated therein, and,
in the case of interest paid by a domestic corporation to a Greek
corporation, (iii) that the owner does not control, directly or
indirectly, more than 50 percent of the entire voting power of all
classes of stock of the United States domestic corporation.
(2) The exemption from United States tax contemplated by Article VI
(1) of the convention, insofar as it concerns coupon bond interest, is
applicable only to the owner of the interest. The person presenting the
coupon or on whose behalf it is presented shall, for the purpose of the
exemption from tax, be deemed to be the owner of the interest only if he
is, at the time the coupon is presented for payment, the owner of the
bond from which the coupon has been detached. If the person presenting
the coupon or on whose behalf it is presented is not the owner of the
bond, Form 1001, and not Form 1001-G, shall be executed.
(3) The original and duplicate of Form 1001-G shall be forwarded by
the withholding agent to the District Director of Internal Revenue,
Audit Division, Alien Returns Section, Baltimore
[[Page 9]]
2, Maryland, with the quarterly return on Form 1012. Form 1001-G need
not be listed on Form 1012.
(4) To avoid withholding of United States tax at source in the case
of interest, other than coupon bond interest, to which paragraph (a)(2)
of this section is applicable, the nonresident alien who is a resident
of Greece, or the Greek corporation, shall notify the withholding agent
by letter in duplicate that such income is exempt from United States tax
under the provisions of Article VI (1) of the convention. The letter of
notification shall be signed by the owner of the interest, trustee, or
agent and shall show the name and address of the obligor and the name
and address of the owner of the interest. It shall contain a statement
(i) that the owner is neither a citizen nor a resident of the United
States but is a resident of Greece, or, in the case of a corporation,
that the owner is a Greek corporation, (ii) that the owner has at no
time during the current taxable year engaged in trade or business within
the United States through a permanent establishment situated therein,
and, in the case of interest paid by a domestic corporation to a Greek
corporation, (iii) that the owner does not control, directly or
indirectly, more than 50 percent of the entire voting power of all
classes of stock of the United States domestic corporation.
(5) This letter of notification, which shall constitute
authorization for the payment of such interest without withholding of
United States tax at source, shall be filed with the withholding agent
for each successive three-calendar-year period during which such income
is paid. For this purpose, the first such period shall commence with the
beginning of the calendar year in which such income is first paid on or
after January 1, 1954. Each such letter filed with any withholding agent
shall be filed not later than 20 days preceding the date of the first
payment within each successive period, or, if that is not possible
because of special circumstances, as soon as possible after such first
payment.
(6) If such letter is also to be used as authorization for the
release, pursuant to Sec. 502.7, of excess tax withheld from interest,
other than coupon bond interest, it shall also contain a statement (i)
that, at the time when the interest was received from which the excess
tax was withheld, the owner was neither a citizen nor a resident of the
United States but was a resident of Greece, or, in the case of a
corporation, the owner was a Greek corporation, (ii) that the owner at
no time during the taxable year in which such interest was received was
engaged in trade or business within the United States through a
permanent establishment situated therein, and, in the case of interest
paid by a domestic corporation to a Greek corporation, (iii) that the
owner did not control, directly or indirectly, at the time when such
interest was paid, more than 50 percent of the entire voting power of
all classes of stock of the United States domestic corporation.
(7) Once a letter has been filed in respect of any three-calendar-
year period, no additional letter need be filed in respect thereto
unless the Commissioner of Internal Revenue notifies the withholding
agent that an additional letter shall be filed by the taxpayer. If,
after filing a letter of notification, the taxpayer ceases to be
eligible for the exemption from United States tax granted by the
convention in respect to such interest, such taxpayer shall promptly
notify the withholding agent by letter in duplicate. When any change
occurs in the ownership of the interest as recorded on the books of the
payer, the exemption from withholding of United States tax shall no
longer apply unless the new owner of record is entitled to and does
properly file a letter of notification with the withholding agent.
(8) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
(d) Interest paid by domestic corporation to Greek corporation where
degree of stock ownership uncertain. (1) In any case in which a Greek
corporation anticipates the receipt of interest from a domestic
corporation and the relationship existing between the Greek corporation
and the domestic corporation is such as to render uncertain whether,
[[Page 10]]
by reason of the exception contained in Article VI (1) of the
convention, the exemption will apply to such interest, the Greek
corporation shall not undertake to file any Form 1001-G or letter of
notification prescribed by paragraph (c) of this section unless it has,
prior to such filing, applied for and received from the Commissioner of
Internal Revenue, Washington 25, D.C., a determination that such Greek
corporation does not control, directly or indirectly, more than 50
percent of the entire voting power in the paying corporation. The
application to the Commissioner shall contain a full statement of all
the facts pertinent to a determination of the question.
(2) As soon as practicable after the application has been filed, the
Commissioner of Internal Revenue will determine whether the Greek
corporation has such control of the domestic corporation as to render
the exemption provided by Article VI (1) of the convention inapplicable
to interest paid by such domestic corporation to such Greek corporation
and shall notify the Greek corporation of his determination. The Greek
corporation shall forthwith file with the domestic corporation a copy of
the Commissioner's letter of notification.
(3) If the Commissioner's determination is that the Greek
corporation does not control, directly or indirectly, more than 50
percent of the entire voting power of all classes of stock of the
domestic corporation, the Greek corporation may thereafter avoid
withholding at the source with respect to subsequent payments of such
interest by complying with the provisions of paragraph (c) of this
section, that is, by submitting Form 1001-G in the case of coupon bond
interest, or the letter of notification for each three-calendar-year
period in the case of interest other than interest payable by means of
coupons.
(4) A determination of the Commissioner that the Greek corporation
does not have such control of the domestic corporation as to render the
exemption provided by Article VI (1) of the convention inapplicable will
apply until such time as the stock ownership of the domestic corporation
has changed to the extent that interest to be received from the domestic
corporation by the Greek corporation is no longer exempt from United
States tax under Article VI (1) of the convention. If such change in
stock ownership occurs, the Greek corporation shall promptly notify both
the Commissioner of Internal Revenue and the domestic corporation of the
then existing facts with respect to such stock ownership.
(5) In any case in which a Greek corporation has received on or
after January 1, 1954, interest from a domestic corporation and the
relationship existing between the Greek corporation and the domestic
corporation was at the time the interest was paid such as to render
uncertain whether, by reason of the exception contained in Article VI
(1) of the convention, such interest was exempt from United States tax,
the Greek corporation shall apply to the Commissioner of Internal
Revenue for a similar determination as to the degree of control at the
time the interest was paid. If the Commissioner's determination is that
at such time the degree of control was such as to permit the application
of the exemption provided by Article VI (1) of the convention, his
letter of notification may, subject to the provisions of Sec. 502.7(b),
authorize the release of excess tax withheld with respect to such exempt
interest.
Sec. 502.4 Natural resource royalties and real property rentals.
The convention does not change the rate of United States tax imposed
pursuant to sections 871, 881, and 882 of the Internal Revenue Code of
1954 upon natural resource royalties and real property rentals. The
withholding of United States tax with respect to such items derived from
sources within the United States by nonresident aliens who are residents
of Greece, or by Greek corporations, is not changed by the convention.
Sec. 502.5 Patent and copyright royalties.
(a) General. (1) Royalties for the right to use copyrights, patents,
designs, secret processes and formulae, trade marks, and other analogous
property, and royalties and rentals for the use of industrial,
commercial, or scientific equipment, which are derived from
[[Page 11]]
sources within the United States on or after January 1, 1953, by a
nonresident alien (including a nonresident alien individual, fiduciary,
and partnership) who is a resident of Greece, or by a Greek corporation,
are exempt from United States tax under the provisions of Article VII of
the convention if such alien or corporation at no time during the
taxable year in which such income is derived has engaged in trade or
business within the United States through a permanent establishment
situated therein. Such royalties are, therefore, not subject to the
withholding of United States tax at source. As to what constitutes a
permanent establishment, see Article II(1)(i) of the convention.
(2) The provisions of this section shall have no application to
rentals or royalties in respect of motion picture films.
(b) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of the income to
which paragraph (a) of this section is applicable, the nonresident alien
who is a resident of Greece, or the Greek corporation, shall notify the
withholding agent by letter in duplicate that such income is exempt from
United States tax under the provisions of Article VII of the convention.
The provisions of Sec. 502.3(c) (other than those pertaining to the
degree of control of voting power) relating to the execution, filing,
and effective period of the letter of notification prescribed therein
with respect to interest, including its use for the release of excess
tax withheld, are equally applicable with respect to the income falling
within the scope of this section.
(2) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
Sec. 502.6 Private pensions and life annuities.
(a) General. Private pensions and life annuities, as defined in
Article XI (3) and (4) of the convention, derived from sources within
the United States on or after January 1, 1953, by a nonresident alien
individual who is a resident of Greece are exempt from United States tax
under the provisions of Article XI(2) of the convention. Such items of
income are, therefore, not subject to the withholding of United States
tax at source.
(b) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of the items of
income to which paragraph (a) of this section is applicable, the
nonresident alien individual who is a resident of Greece shall notify
the withholding agent by letter in duplicate that such income is exempt
from United States tax under the provisions of Article XI of the
convention. The letter of notification shall be signed by the owner of
the income, shall show the name and address of both the payer and the
owner of the income, and shall contain a statement that the owner, an
individual, is neither a citizen nor a resident of the United States but
is a resident of Greece.
(2) If such letter is also to be used as authorization for the
release, pursuant to Sec. 502.7(a), of excess tax withheld from such
items of income, it shall also contain a statement that the owner was,
at the time when the income was derived from which the excess tax was
withheld, neither a citizen nor a resident of the United States but was
a resident of Greece.
(3) This letter shall constitute authorization for the payment of
such items of income without withholding of United States tax at source
unless the Commissioner of Internal Revenue subsequently notifies the
withholding agent that the tax shall be withheld with respect to
payments of such items of income made after receipt of such notice. If,
after filing a letter of notification, the owner of the income ceases to
be eligible for the exemption from United States tax granted by the
convention in respect to such income, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of such income as recorded on the books of the payer, the
exemption from withholding of United States tax shall no longer apply
unless the new owner of record is entitled to and does properly file a
letter of notification with the withholding agent.
[[Page 12]]
(4) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
Sec. 502.7 Release of excess tax withheld at source.
(a) General. (1) In order to give the convention effective
application at the earliest practicable date, the exemptions from
withholding of United States tax at source granted by this part are
hereby made effective beginning January 1, 1954, contingent upon
compliance with the applicable provisions of Secs. 502.2 through 502.6.
(2) In the case of dividends and interest paid by a Greek
corporation to a recipient other than a citizen, resident, or
corporation of the United States, if United States tax at the stautory
rate has been withheld on or after January 1, 1954, there shall be
released by the withholding agent and paid over to the person from whom
it was withheld, an amount equal to the tax so withheld from such items.
(3) In the case of every taxpayer whose address at the time of
payment was in Greece and who furnishes to the withholding agent the
letter of notification prescribed in Secs. 502.3(c), 502.5(b), and
502.6(b) as authorization for the release of excess tax withheld, if
United States tax at the statutory rate (30 percent as of the date of
approval of this part) has been withheld on or after January 1, 1954,
from interest (other than coupon bond interest), copyright royalties and
other items to which Sec. 502.5(a) is applicable, and from private
pensions and life annuities as defined in Article XI, there shall be
released (except as provided in paragraph (b) of this section) by the
withholding agent and paid over to the person from whom it was withheld
an amount equal to the tax so withheld from such items.
(4) In the case of every taxpayer whose address at the time of
payment was in Greece and who furnishes to the withholding agent Form
1001-G clearly marked ``Substitute'' and executed in accordance with
Sec. 502.3(c), if United States tax at the statutory rate has been
withheld from coupon bond interest on or after January 1, 1954, there
shall be released (except as provided in paragraph (b) of this section)
by the withholding agent and paid over to the person from whom it was
withheld an amount equal to the tax so withheld from such interest. One
such substitute form shall be filed in duplicate with respect to each
issue of bonds and will serve with respect to that issue to replace all
Forms 1001 previously filed by the taxpayer in the calendar year in
which the excess tax was withheld and with respect to which such excess
is released.
(5) The original and duplicate of substitute Form 1001-G shall be
forwarded by the withholding agent to the District Director of Internal
Revenue, Audit Division, Alien Returns Section, Baltimore 2, Maryland,
with the quarterly return on Form 1012. Substitute Form 1001-G need not
be listed on Form 1012.
(6) The provisions of this section (other than paragraph (c) of this
section) shall have no application to excess tax withheld at source
which has been paid by the witholding agent to the district director of
internal revenue.
(b) Interest paid where degree of stock ownership is determined. If
United States tax at the rate of 28 percent or 30 percent, as the case
may be, has been withheld on or after January 1, 1954, from interest
paid by a domestic corporation to a Greek corporation whose address at
the time of payment was in Greece, and if the relationship existing
between the Greek corporation and the domestic corporation, was, at the
time the interest was paid, such as to render uncertain whether, by
reason of the exception contained in Article VI (1) of the convention,
such interest was exempt from United States tax, the withholding agent
shall release and pay over to the Greek corporation an amount equal to
the tax so withheld only if the Greek corporation (1) furnishes to the
domestic corporation a copy of the Commissioner's authorization of
release prescribed in Sec. 502.3 (d) and (2) files the letter of
notification prescribed in Sec. 502.3(c), or the substitute Form 1001-G
prescribed in paragraph (a) of this section, whichever is applicable.
[[Page 13]]
(c) Amounts withheld during 1953. For provisions respecting the
refund of excess tax withheld during the calendar year 1953, see
Sec. 502.10.
Sec. 502.8 Information to be furnished in ordinary course.
(a) General. In compliance with the provisions of Article XVIII of
the convention the Commissioner of Internal Revenue will transmit to the
Greek General Director of Direct Taxes, as soon as practicable after the
close of the calendar year 1954 and of each subsequent calendar year
during which the convention is in effect, the following information
relating to such preceding calendar year:
(1) The duplicate copy of each available Form 1042 Supplement filed
pursuant to paragraph (b) of this section; and
(2) The duplicate copy of each available ownership certificate, Form
1001-G, filed pursuant to Sec. 502.3(c), and substitute Form 1001-G,
filed pursuant to Sec. 502.7 (a) and (b), in connection with coupon bond
interest.
(b) Information return. (1) To facilitate compliance with Article
XVIII of the convention, every United States withholding agent shall
make and file in duplicate with the district director of internal
revenue for the district in which the withholding agent is located an
information return on Form 1042 Supplement, with respect to Greek
addressees, which shall be filed for the calendar year 1954 and
subsequent calendar years. This return shall be filed simultaneously
with Form 1042.
(2) There shall be reported on such Form 1042 Supplement all items
of fixed or determinable annual or periodical income (and, for 1955 and
subsequent years, amounts described in section 402(a)(2), section 631
(b) and (c), and section 1235 of the Internal Revenue Code of 1954,
which are considered to be gains from the sale or exchange of capital
assets) derived from sources within the United States and paid to
nonresident aliens (including nonresident alien individuals,
fiduciaries, and partnerships) and to nonresident foreign corporations,
whose addresses at the time of payment were in Greece, including such
items of income upon which, in accordance with this part, no withholding
of United States tax is required; except that any of such items which
constitute interest in respect of which Form 1001-G or substitute Form
1001-G has been filed in duplicate with the withholding agent are not
required to be reported on such Form 1042 Supplement.
Sec. 502.9 Beneficiaries of a domestic estate or trust.
A nonresident alien who is a resident of Greece and who is a
beneficiary of a domestic estate or trust shall be entitled to the
exemption from United States tax granted by Articles VI, VII, and IX of
the convention with respect to dividends, interest, and copyright
royalties and the like, to the extent such item or items are included in
that portion of the income of such estate or trust which is (or would,
but for such exemption, be) includible in the gross income of the
beneficiary, provided that he otherwise satisfies the requirements of
these respective articles. In order to be entitled in such instance to
the exemption from withholding of United States Tax such beneficiary
must otherwise satisfy such requirements and shall, where applicable,
execute and submit to the fiduciary of such estate or trust in the
United States the appropriate letter of notification prescribed in
Secs. 502.3(c) and 502.5(b).
Sec. 502.10 Refund of excess tax withheld during 1953.
(a) If United States tax withheld at the source during the year 1953
from dividends, interest, copyright royalties and the like, pensions, or
life annuities is in excess of the tax imposed under the internal
revenue laws, as modified by the convention, a claim by the taxpayer for
the refund of any overpayment resulting therefrom shall be made under
subchapter B of chapter 66 of the Internal Revenue Code of 1954 by
filing Form 843 together with Form 1040NB, Form 1040NB-a, Form 1040B,
Form 1120, or Form 1120NB, whichever is applicable, or with an amended
return.
(b) The taxpayer's total gross income from sources within the United
States, including every item of capital gain subject to tax under the
provisions of
[[Page 14]]
section 211(a)(1)(B) or 211(c) of the Internal Revenue Code of 1939,
shall be disclosed on the return. In the event that securities are held
in the name of a person other than the actual or beneficial owner, the
name and address of such person shall be furnished with the claim. In
the case of a claim involving an overpayment of tax upon dividends or
interest paid by a Greek corporation, a statement that the dividends or
interest were paid by such a corporation shall be included in the claim.
If the claim relates to other interest, copyright royalties and the
like, pensions, or life annuities, there shall also be included in such
claim:
(1) A statement that, at the time when such item or items of income
were derived from which the excess tax was withheld, (i) the taxpayer
was neither a citizen nor a resident of the United States but was a
resident of Greece, or, in the case of a corporation, (ii) the taxpayer
was a Greek corporation;
(2) A statement that the taxpayer at no time during the taxable year
in which such income was derived was engaged in trade or business within
the United States through a permanent establishment situated therein;
and
(3) In the case of a claim involving an overpayment of tax upon
interest paid by a domestic corporation to a Greek corporation, a
statement that the Greek corporation, at the time when the interest was
paid, did not control, directly or indirectly, more than 50 percent of
the entire voting power of all classes of stock of the United States
domestic corporation. If the relationship existing between the Greek
corporation and the domestic corporation at the time when such interest
was paid was such as to render uncertain whether the exemption granted
by Article VI (1) of the convention is applicable to such interest,
there shall be furnished a full statement of all the facts pertinent to
a determination of the question.
(c) If, however, the taxpayer is an individual who during the
taxable year derived from sources within the United States income which
consists exclusively of pensions or life annuities entitled to the
benefit of Article XI of the convention, the statement specified in
paragraph (b)(2) of this section shall not be required.
PART 503--GERMANY--Table of Contents
Subpart--Withholding of Tax
Sec.
503.1 Introductory.
503.2 Dividends.
503.3 Interest.
503.4 Patent and copyright royalties and film rentals.
503.5 Private pensions and private life annuities.
503.6 Release of excess tax withheld at source.
503.7 Information to be furnished in ordinary course.
503.8 Beneficiaries of a domestic estate or trust.
503.9 Land Berlin.
Authority: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805.
Source: Treasury Decision 6122, 20 FR 682, Feb. 1, 1955, as amended
at 25 FR 14021, Dec. 31, 1960, unless otherwise noted.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997, part
503 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--Withholding of Tax
Sec. 503.1 Introductory.
(a) The income tax convention between the United States and the
Federal Republic of Germany, signed on July 22, 1954, and proclaimed by
the President of the United States on December 24, 1954, referred to in
this part as the convention, provides in part as follows, effective for
taxable years beginning on or after January 1, 1954:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America: The Federal income
taxes, including surtaxes and excess profits taxes;
(b) In the case of the Federal Republic: The income tax, the
corporation tax and the Berlin emergency contribution (Notopfer).
(2) The present Convention shall also apply to any other income or
profits tax of a substantially similar character which may be imposed by
one of the contracting States after the date of signature of the present
Convention.
[[Page 15]]
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense means the States, the Territories
of Alaska and Hawaii, and the District of Columbia;
(b) The term ``Federal Republic'' means the Federal Republic of
Germany and when used in a geographical sense means the territory over
which the Basic Law for the Federal Republic of Germany is in effect;
(c) The term ``permanent establishment'' means a branch, office,
factory, workshop, warehouse, mine, stone quarry or other place of
exploitation of the ground or soil, permanent display and sales office,
or a construction or assembly project or the like the duration of which
exceeds or will likely exceed twelve months, or other fixed place of
business; but does not include the casual and temporary use of mere
storage facilities, nor does it include an agent or employee unless the
agent or employee has full power for the negotiation and concluding of
contracts on behalf of the enterprise and also habitually exercises this
power, or has a stock of merchandise from which he regularly fills
orders on behalf of the enterprise. An enterprise of one of the
contracting States shall not be deemed to have a permanent establishment
in the other State merely because it carries on business dealings in
such other State through a commission agent, broker, custodian or other
independent agent, acting in the ordinary course of his business as
such. The fact that an enterprise of one of the contracting States
maintains in the other State a fixed place of business exclusively for
the purchase of goods and merchandise shall not of itself constitute
such fixed place of business a permanent establishment of the
enterprise. The fact that a corporation of one contracting State has a
subsidiary corporation which is a corporation of the other State or
which is engaged in trade or business in the other State shall not of
itself constitute that subsidiary corporation a permanent establishment
of its parent corporation. The maintenance within the territory of one
of the contracting States by an enterprise of the other contracting
State of a warehouse for convenience of delivery and not for purposes of
display shall not of itself constitute a permanent establishment within
that territory;
(d) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``German
enterprise'';
(e) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on in the United States by
a resident (including an individual in his individual capacity or as a
member of a partnership) or a fiduciary of the United States or by a
United States corporation or other entity; the term ``United States
corporation or other entity'' means a corporation or other entity
created or organized under the law of the United States or of any State
or Territory of the United States;
(f) The term ``German enterprise'' means an industrial or commercial
enterprise or undertaking carried on in the Federal Republic by a
natural person (including an individual in his individual capacity or as
a member of a partnership) resident in the Federal Republic or by a
German company; the term ``German company'' means juridical persons
together with entities treated as juridical persons for tax purposes
under the laws of the Federal Republic; and
(g) The term ``competent authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury; and in the case of the Federal Republic, the
Federal Ministry of Finance.
(2) In the application of the provisions of this Convention by one
of the contracting States any term not otherwise defined shall, unless
the context otherwise requires, have the meaning which the term has
under its own applicable laws. For the purposes of this Convention
``residence'' in the Federal Republic shall include the customary place
of abode therein.
* * * * *
Article VI
(1) The rate of tax imposed by the United States shall not exceed 15
percent in the case of dividends from sources within the United States
derived by a German company not having a permanent establishment in the
United States and owning at least 10 percent of the voting stock of the
corporation paying such dividend.
* * * * *
(3) If, subsequent to the date of signature of this Convention, the
percentage of stock ownership provided in section 131(f)(1) of the
Internal Revenue Code [of 1939] is reduced, the percentage of stock
ownership provided in paragraphs 1 and * * * of this Article shall
likewise be deemed to be simultaneously reduced.
Article VII
Interest on bonds, notes, debentures, securities or on any other
form of indebtedness (exclusive of interest on debts secured by
mortgages on farms, timberlands or real property used wholly or partly
for housing purposes) derived, bona fide as interest.
(A) by a natural person resident in the Federal Republic, or by a
German company, not having a permanent establishment in the
[[Page 16]]
United States, shall be exempt from tax by the United States; or
* * * * *
Article VIII
Royalties and other amounts derived as bona fide consideration for
the right to use copyrights, artistic and scientific works, patents,
designs, plans, secret processes and formulae, trade-marks and other
like property and rights (including rentals and like payments in respect
to motion picture films or for the use of industrial, commercial or
scientific equipment), derived
(A) by a natural person resident in the Federal Republic, or by a
German company, not having a permanent establishment in the United
States, shall be exempt from tax by the United States; or
* * * * *
Article IX
(1) Income from real property situated in one of the contracting
States (including gains derived from the sale or exchange of such
property and interest on debts secured by mortgages on farms,
timberlands, or real property used wholly or partly for housing
purposes) and royalties in respect of the operation of mines, stone
quarries or other natural resources derived by a resident or corporation
or other entity or company of the other contracting State, shall be
taxable only by the former State.
(2)(a) A natural person resident in the Federal Republic or a German
company deriving from sources within the United States any item of
income coming within the scope of paragraph (1) of this Article, may,
for any taxable year, elect to be subject to tax by the United States on
a net income basis as if such resident or company were engaged in trade
or business within the United States through a permanent establishment
therein.
* * * * *
Article XI
(1)(a) Wages, salaries and similar compensation and pensions paid by
the United States or by its states, territories or political
subdivisions, to an individual (other than a German citizen) shall be
exempt from tax by the Federal Republic.
(b) Wages, salaries and similar compensation and pensions paid by
the Federal Republic, Laender or municipalities, or by a public pension
fund, to an individual (other than a citizen of the United States and
other than an individual who has been admitted to the United States for
permanent residence therein) shall be exempt from tax by the United
States.
(c) For the purposes of this paragraph the term ``pensions'' shall
be deemed to include annuities paid to a retired civilian government
employee.
(2) Private pensions and private life annuities which are from
sources within one of the contracting States and are paid to individuals
residing in the other contracting State shall be exempt from taxation by
the former State.
(3) The term ``pensions'', as used in this Article, means periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
(4) The term ``life annuities'', as used in this Article, means a
stated sum payable periodically at stated times during life, or during a
specified number of years, under an obligation to make the payments in
return for adequate and full consideration in money or money's worth.
* * * * *
Article XIV
(1) Dividends and interest paid by a German company (other than a
United States corporation) shall be exempt from United States tax where
the recipient is a nonresident alien or a foreign corporation.
* * * * *
Article XVI
(1) The competent authorities of the contracting States shall
exchange such information (being information available under the
respective taxation laws of the contracting States) as is necessary for
carrying out the provisions of the present Convention or for the
prevention of fraud or the like in relation to the taxes which are the
subject of the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any persons other than
those concerned with the assessment and collection of the taxes which
are the subject of the present Convention. No information shall be
exchanged which would disclose any trade, business, industrial or
professional secret or any trade process.
(2) Each of the contracting States may collect such taxes imposed by
the other contracting State as though such taxes were the taxes of the
former State as will ensure that any exemption or reduced rate of tax
granted under the present Convention by such other State shall not be
enjoyed by persons not entitled to such benefits.
(3) In no case shall the provisions of this Article be construed so
as to impose upon either of the contracting States the obligation to
carry out administrative measures at variance with the regulations and
practice of either contracting State or which would be
[[Page 17]]
contrary to its sovereignty, security or public policy or to supply
particulars which are not procurable under its own legislation or that
of the State making application.
Article XVII
* * * * *
(2) For the settlement of difficulties or doubts in the
interpretation or application of the present Convention or in respect of
its relation to Conventions of the contracting States with third States
the competent authorities of the contracting States shall reach a mutual
agreement as quickly as possible.
Article XVIII
(1) The provisions of this Convention shall not be construed to deny
or affect in any manner the right of diplomatic and consular officers to
other or additional exemptions now enjoyed or which may hereafter be
granted to such officers.
(2) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance now or hereafter accorded, by the laws of one of the
contracting States in the determination of the tax imposed by such
State, or by any other agreement between the contracting States.
* * * * *
Article XIX
(1) The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
Convention within the respective States.
(2) The competent authorities of the two contracting States may
communicate with each other directly for the purpose of giving effect to
the provisions of this Convention.
Article XX
(1) The present Convention shall also apply from the date specified
in paragraph (1) of Article XXI to Land Berlin which for the purposes of
this Convention comprises those areas over which the Berlin Senate
exercises jurisdiction.
(2) It is a condition to the application of this Convention to
Berlin in accordance with the preceding paragraph that the Government of
the Federal Republic shall previously have furnished to the Government
of the United States of America a notification that all legal procedures
in Berlin necessary for the application of this Convention therein have
been complied with.
(3) After application of this Convention to Land Berlin in
accordance with paragraphs (1) and (2) of this Article, references in
this Convention to the Federal Republic shall also be considered
references to Land Berlin.
Article XXI
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Bonn as soon as possible. It shall
have effect for the taxable years beginning on or after the first day of
January of the year in which such exchange takes place.
(2) The present Convention shall continue effective for a period of
five years beginning with the calendar year in which the exchange of the
instruments of ratification takes place and indefinitely after that
period, but may be terminated by either of the contracting States at the
end of the five-year period or at any time thereafter, provided that at
least six months' prior notice of termination has been given and, in
such event, the present Convention shall cease to be effective for the
taxable years beginning on or after the first day of January next
following the expiration of the six-month period.
* * * * *
(b) As used in this part, any term defined in the convention shall
have the meaning so assigned to it; any term not so defined shall,
unless the context otherwise requires, have the meaning which such term
has under the internal revenue laws.
Sec. 503.2 Dividends.
(a) General. (1) Dividends paid by a German company (other than a
United States corporation) and received in taxable years beginning on or
after January 1, 1954, by a nonresident alien or a foreign corporation
are exempt from United States tax under the provisions of Article XIV of
the convention. Such dividends are, therefore, not subject to the
withholding of United States tax at source.
(2) The rate of United States tax imposed by the Internal Revenue
Code upon dividends (other than dividends falling within the scope of
subparagraph (1) of this paragraph) derived from sources within the
United States in taxable years beginning on or after January 1, 1954, by
a German company (other than a United States corporation) shall not
exceed 15 percent under the provisions of Article VI of the convention
if (i) such company at no time during the taxable year in which such
dividends are derived has a permanent
[[Page 18]]
establishment in the United States and (ii) such company owns, at the
time the dividends are paid, 10 percent or more of the voting stock of
the paying corporation.
(b) Application of reduced rate of withholding. (1) To secure
withholding of United States tax at the rate of 15 percent at source in
the case of dividends to which paragraph (a)(2) of this section is
applicable, the German company shall notify the withholding agent by
letter in duplicate that such income is subject to the reduced rate of
United States tax under the provisions of Article VI of the convention.
The letter of notification shall be signed by an officer of the company
and shall show the name and address of the corporation paying the
dividend, the name and address of the German company receiving the
dividend, and the official title of the officer signing the letter. It
shall contain a statement (i) that the owner of the dividend is a German
company (other than a United States corporation), (ii) that the owner at
no time during the current taxable year had a permanent establishment in
the United States, and (iii) that the German company owns 10 percent or
more of the voting stock of the corporation paying such dividend.
(2) This letter of notification, which shall constitute
authorization for application of the reduced rate of withholding of
United States tax at source, shall be filed with the withholding agent
for each successive 3-calendar-year period during which such income is
paid. For this purpose, the first such period shall commence with the
beginning of the calendar year in which such income is first paid on or
after January 1, 1954. Each such letter filed with any withholding agent
shall be filed not later than 20 days preceding the date of the first
payment within each successive period, or, if that is not possible
because of special circumstances, as soon as possible after such first
payment.
(3) If such letter is also to be used as authorization for the
release, pursuant to Sec. 503.6(a)(3), of excess tax withheld from
dividends, it shall also contain a statement (i) that, at the time when
the dividends were derived from which the excess tax was withheld, the
owner was a German company (other than a United States corporation),
(ii) that the owner at no time during the taxable year in which such
dividends were derived had a permanent establishment in the United
States and (iii) that the German company owned, at the time when such
dividends were paid, 10 percent or more of the voting stock of the
corporation paying such dividends.
(4) Once a letter has been filed in respect of any 3-calendar-year
period, no additional letter need be filed in respect thereto unless the
Commissioner of Internal Revenue notifies the withholding agent that an
additional letter shall be filed by the taxpayer. If, after filing a
letter of notification, the taxpayer ceases to be eligible for the
reduction in rate of United States tax granted by the convention in
respect to such dividends, such taxpayer shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of the stock as recorded on the books of the payer the
reduction in the rate of withholding of United States tax shall no
longer apply unless the new owner of record is entitled to and does
properly file a letter of notification with the withholding agent.
(5) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
(c) Dividends paid to German company where degree of stock ownership
uncertain. (1) In any case in which a German company (other than a
United States corporation) anticipates the receipt of dividends
described in paragraph (a)(2) of this section and the relationship
existing between the German company and the paying corporation is such
as to render uncertain whether, by reason of the requirement as to stock
ownership, the reduction in rate of United States tax granted by Article
VI of the convention will apply to such dividends, the German company
shall not undertake to file the letter of notification prescribed by
paragraph (b)(1) of this section unless it has, prior to such filing,
applied for and received from the Commissioner of Internal Revenue,
Washington 25, D.C., a determination
[[Page 19]]
that such German company owns 10 percent or more of the voting stock of
the paying corporation. The application to the Commissioner shall
contain a full statement of all the facts pertinent to a determination
of the question.
(2) As soon as practicable after the application has been filed, the
Commissioner of Internal Revenue will determine whether the German
company owns sufficient voting stock of the paying corporation to permit
it to claim the benefit of Article VI of the convention in the case of
such dividends and shall notify the German company of his determination.
The German company shall forthwith file with the paying corporation a
copy of the Commissioner's letter of notification.
(3) If the Commissioner's determination is that the German company
does own 10 percent or more of the voting stock of the paying
corporation, the German company may thereafter, if otherwise qualified,
secure the reduced rate of withholding at the source with respect to
subsequent payments of such dividends, by filing the letter of
notification in accordance with paragraph (b) of this section.
(4) A determination by the Commissioner that the German company does
own sufficient voting stock of the paying corporation to permit it to
claim the benefit of Article VI of the convention will apply until such
time as the stock ownership of the paying corporation has changed to the
extent that, because of such change, dividends to be received from the
paying corporation by the German company no longer qualify for the
reduced rate of United States tax under Article VI of the convention. If
such change in stock ownership occurs, the German company shall promptly
notify both the Commissioner of Internal Revenue and the paying
corporation of the then existing facts with respect to such stock
ownership.
(5) In any case in which a German company (other than a United
States corporation) has received on or after January 1, 1954, dividends
described in paragraph (a)(2) of this section and the relationship
existing between the German company and the paying corporation was, at
the time the dividends were paid, such as to render uncertain whether,
by reason of the requirement contained in Article VI of the convention
as to stock ownership, such dividends qualified for the reduced rate of
United States tax, the German company shall apply to the Commissioner of
Internal Revenue for a similar determination as to the degree of stock
ownership at the time the dividends were paid. If the Commissioner's
determination is that at such time the degree of stock ownership was
such as to permit the application of the reduced rate of United States
tax granted by Article VI of the convention, his letter of notification
may, subject to the provisions of Sec. 503.6(b), authorize the release
of excess tax withheld with respect to such dividends.
Sec. 503.3 Interest.
(a) General. (1) Interest paid by a German company (other than a
United States corporation) and received in taxable years beginning on or
after January 1, 1954, by a nonresident alien or a foreign corporation
is exempt from United States tax under the provisions of Article XIV of
the convention. Such interest is, therefore, not subject to the
withholding of United States tax at source.
(2) Interest (other than interest falling within the scope of
subparagraph (1) of this paragraph) on bonds, notes, debentures,
securities, or on any other form of indebtedness, including interest on
obligations of the United States and of instrumentalities of the United
States, which is derived, bona fide as interest, in taxable years
beginning on or after January 1, 1954, by a natural person (other than a
citizen or resident of the United States) resident in the Federal
Republic of Germany, or by a German company (other than a United States
corporation), is exempt from United States tax under the provisions of
Article VII of the convention if such person or company at no time
during the taxable year in which such interest is derived has a
permanent establishment in the United States. Such interest is,
therefore, not subject to the withholding of United States tax at
source.
[[Page 20]]
(3) The provisions of subparagraph (2) of this paragraph shall have
no application to interest on debts secured by mortgages on farms,
timberlands, or real property used wholly or partly for housing
purposes.
(b) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of coupon bond
interest to which paragraph (a)(2) of this section is applicable, the
resident of the Federal Republic of Germany or the Germany company
shall, for each issue of bonds, file Form 1001-GER in duplicate when
presenting the interest coupons for payment. This form shall be signed
by the owner of the interest, trustee, or agent and shall show the name
and address of the obligor, the name and address of the owner of the
interest, and the amount of the interest. It shall contain a statement
(i) that the owner is neither a citizen nor a resident of the United
States but is a resident of the Federal Republic of Germany, or, in the
case of a company, the owner is a German company (other than a United
States corporation), and (ii) that the owner has no permanent
establishment in the United States.
(2) The exemption from United States tax contemplated by Article VII
of the convention, insofar as it concerns coupon bond interest, is
applicable only to the owner of the interest. The person presenting the
coupon or on whose behalf it is presented shall, for the purpose of the
exemption from tax, be deemed to be the owner of the interest only if he
is, at the time the coupon is presented for payment, the owner of the
bond from which the coupon has been detached. If the person presenting
the coupon or on whose behalf it is presented is not the owner of the
bond, Form 1001, and not Form 1001-GER, shall be executed.
(3) The original and duplicate of Form 1001-GER shall be forwarded
by the withholding agent to the District Director of Internal Revenue,
Audit Division, Alien Returns Section, Baltimore 2, Maryland, with the
quarterly return on Form 1012. Form 1001-GER need not be listed on Form
1012.
(4) To avoid withholding of United States tax at source in the case
of interest, other than coupon bond interest, to which paragraph (a)(2)
of this section is applicable, the resident of the Federal Republic of
Germany or the German company shall notify the withholding agent by
letter in duplicate that such income is exempt from United States tax
under the provisions of Article VII of the convention. The letter of
notification shall be signed by the owner of the interest, trustee, or
agent and shall show the name and address of the obligor and the name
and address of the owner of the interest. It shall contain a statement
(i) that the owner is neither a citizen nor a resident of the United
States but is a resident of the Federal Republic of Germany, or, in the
case of a company, the owner is a German company (other than a United
States corporation), and (ii) that the owner has at no time during the
current taxable year had a permanent establishment in the United States.
(5) This letter of notification, which shall constitute
authorization for the payment of such interest without withholding of
United States tax at source, shall be filed with the withholding agent
for each successive 3-calendar-year period during which such income is
paid. For this purpose, the first such period shall commence with the
beginning of the calendar year in which such income is first paid on or
after January 1, 1954. Each such letter filed with any withholding agent
shall be filed not later than 20 days preceding the date of the first
payment within each successive period, or, if that is not possible
because of special circumstances, as soon as possible after such first
payment.
(6) If such letter is also to be used as authorization for the
release, pursuant to Sec. 503.6(a)(3), of excess tax withheld from
interest, other than coupon bond interest, it shall also contain a
statement (i) that, at the time when the interest was derived from which
the excess tax was withheld, the owner was neither a citizen nor a
resident of the United States but was a resident of the Federal Republic
of Germany, or, in the case of a company, the owner was a German company
(other than a United States corporation), and (ii) that the owner at no
time during the taxable year in which such interest was
[[Page 21]]
derived had a permanent establishment in the United States.
(7) Once a letter has been filed in respect of any 3-calendar-year
period, no additional letter need be filed in respect thereto unless the
Commissioner of Internal Revenue notifies the withholding agent that an
additional letter shall be filed by the taxpayer. If, after filing a
letter of notification, the taxpayer ceases to be eligible for the
exemption from United States tax granted by the convention in respect to
such interest, such taxpayer shall promptly notify the withholding agent
by letter in duplicate. When any change occurs in the ownership of the
interest as recorded on the books of the payer, the exemption from
withholding of United States tax shall no longer apply unless the new
owner of record is entitled to and does properly file a letter of
notification with the withholding agent.
(8) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
Sec. 503.4 Patent and copyright royalties and film rentals.
(a) General. (1) Royalties and other amounts derived in taxable
years beginning on or after January 1, 1954, by a natural person (other
than a citizen or resident of the United States) resident in the Federal
Republic of Germany, or by a German company (other than a United States
corporation), as bona fide consideration for the right to use
copyrights, artistic and scientific works, patents, designs, plans,
secret processes and formulae, trade-marks, and other like property and
rights, are exempt from United States tax under the provisions of
Article VIII of the convention if such person or company at no time
during the taxable year in which such income is derived has a permanent
establishment in the United States. Such items of income, are,
therefore, not subject to the withholding of United States tax at
source.
(2) The provisions of this section shall apply to rentals and like
payments in respect to motion picture films or for the use of
industrial, commercial, or scientific equipment.
(b) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of the income to
which this section is applicable, the resident of the Federal Republic
of Germany or the German company shall notify the withholding agent by
letter in duplicate that such income is exempt from United States tax
under the provisions of Article VIII of the convention. The provisions
of Sec. 503.3(b) relating to the execution, filing, and effective period
of the letter of notification prescribed therein with respect to
interest, including its use for the release of excess tax withheld, are
equally applicable with respect to the income falling within the scope
of this section.
(2) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
Sec. 503.5 Private pensions and private life annuities.
(a) General. Private pensions and private life annuities, as defined
in Article XI (3) and (4) of the convention, which are received from
sources within the United States in taxable years beginning on or after
January 1, 1954, by a nonresident alien individual who is a resident of
the Federal Republic of Germany are exempt from United States tax under
the provisions of Article XI(2) of the convention. Such items of income
are, therefore, not subject to the withholding of United States tax at
source.
(b) Application of exemption from withholding. (1) To avoid
withholding of United States tax at source in the case of the items of
income to which paragraph (a) of this section is applicable, the
nonresident alien individual who is a resident of the Federal Republic
of Germany shall notify the withholding agent by letter in duplicate
that such income is exempt from United States tax under the provisions
of Article XI of the convention. The letter of notification shall be
signed by the owner of the income, shall show the name and address of
both the payer and the owner of the income, and shall contain
[[Page 22]]
a statement that the owner, an individual, is neither a citizen nor a
resident of the United States but is a resident of the Federal Republic
of Germany.
(2) If such letter is also to be used as authorization for the
release, pursuant to Sec. 503.6(a)(3), of excess tax withheld from such
items of income, it shall also contain a statement that the owner was,
at the time when the income was received from which the excess tax was
withheld, neither a citizen nor a resident of the United States but was
a resident of the Federal Republic of Germany.
(3) This letter shall constitute authorization for the payment of
such items of income without withholding of United States tax at source
unless the Commissioner of Internal Revenue subsequently notifies the
withholding agent that the tax shall be withheld with respect to
payments of such items of income made after receipt of such notice. If,
after filing a letter of notification, the owner of the income ceases to
be eligible for the exemption from United States tax granted by the
convention in respect to such income, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of such income as recorded on the books of the payer, the
exemption from withholding of United States tax shall no longer apply
unless the new owner of record is entitled to and does properly file a
letter of notification with the withholding agent.
(4) Each letter of notification, or the duplicate thereof, shall be
immediately forwarded by the withholding agent to the District Director
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2,
Maryland.
Sec. 503.6 Release of excess tax withheld at source.
(a) General. (1) In order to give the convention effective
application at the earliest practicable date, the exemptions from, and
reduction in the rate of, withholding of United States tax at source
granted by this Treasury decision are hereby made effective beginning
January 1, 1954, contingent upon compliance with the applicable
provisions of Secs. 503.2 through 503.5.
(2) In the case of dividends and interest paid by a German company
(other than a United States corporation) to a nonresident alien or to a
foreign corporation, if United States tax at the statutory rate has been
withheld on or after January 1, 1954, there shall be released by the
withholding agent and paid over to the person from whom it was withheld,
an amount equal to the tax so withheld from such items.
(3) In the case of every taxpayer whose address at the time of
payment was in the Federal Republic of Germany and who furnishes to the
withholding agent the letter of notification prescribed in
Secs. 503.2(b), 503.3(b), 503.4(b), and 503.5(b) as authorization for
the release of excess tax withheld, if United States tax at the
statutory rate has been withheld on or after January 1, 1954, from the
items of income in respect of which such letter is prescribed in such
sections, there shall be released (except as provided in paragraph (b)
of this section) by the withholding agent and paid over to the person
from whom it was withheld:
(i) In the case of dividends, the difference between the tax so
withheld and the tax required to be withheld pursuant to Sec. 503.2(b);
and
(ii) In the case of interest (other than coupon bond interest),
copyright royalties and other items to which Sec. 503.4 is applicable,
and private pensions and private life annuities as defined in Article XI
of the convention, an amount equal to the tax so withheld from such
items.
(4) In the case of every taxpayer whose address at the time of
payment was in the Federal Republic of Germany and who furnishes to the
withholding agent Form 1001-GER clearly marked ``Substitute'' and
executed in accordance with Sec. 503.3(b), if United States tax at the
statutory rate has been withheld from coupon bond interest on or after
January 1, 1954, there shall be released by the withholding agent and
paid over to the person from whom it was withheld an amount equal to the
tax so withheld from such interest. One such substitute form shall be
filed in duplicate with respect to each issue of bonds and will serve
with respect to that issue to replace all Forms 1001 previously filed by
the taxpayer in
[[Page 23]]
the calendar year in which the excess tax was withheld and with respect
to which such excess is released.
(5) The original and duplicate of substitute Form 1001-GER shall be
forwarded by the withholding agent to the District Director of Internal
Revenue, Audit Division, Alien Returns Section, Baltimore 2, Maryland,
with the quarterly return on Form 1012. Substitute Form 1001-GER need
not be listed on Form 1012.
(b) Interest paid where degree of stock ownership is determined. If
United States tax at the statutory rate has been withheld on or after
January 1, 1954, from dividends described in Sec. 503.2(a)(2) and paid
to a German company (other than a United States corporation), and if the
relationship existing between the German company and the paying
corporation was, at the time the dividends were paid, such as to render
uncertain whether, by reason of the requirement contained in Article VI
of the convention as to stock ownership, such dividends qualified for
the reduced rate of United States tax, the withholding agent shall
release and pay over to the German company the difference between the
tax so withheld and the tax required to be withheld pursuant to
Sec. 503.2(b), only if the German company (1) furnishes to the
withholding agent a copy of the Commissioner's authorization of release
prescribed in Sec. 503.2(c)(5), and (2) files the letter of notification
prescribed in Sec. 503.2(b)(1).
Sec. 503.7 Information to be furnished in ordinary course.
(a) General. In compliance with the provisions of Article XVI of the
convention the Commissioner of Internal Revenue will transmit to the
Federal Ministry of Finance, as soon as practicable after the close of
the calendar year 1955 and of each subsequent calendar year during which
the convention is in effect, the following information relating to such
preceding calendar year:
(1) The duplicate copy of each available Form 1042 Supplement filed
pursuant to paragraph (b) of this section; and
(2) The duplicate copy of each available ownership certificate, Form
1001-GER, filed pursuant to Sec. 503.3(b), and substitute Form 1001-GER,
filed pursuant to Sec. 503.6(a), in connection with coupon bond
interest.
(b) Information return. (1) To facilitate compliance with Article
XVI of the convention, every United States withholding agent shall make
and file in duplicate with the District Director of Internal Revenue,
Baltimore 2, Maryland, an information return on Form 1042 Supplement,
with respect to persons having addresses in the Federal Republic of
Germany, which shall be filed for the calendar year 1955 and subsequent
calendar years. This return shall be filed simultaneously with Form
1042.
(2) There shall be reported on such Form 1042 Supplement all items
of fixed or determinable annual or periodical income (and amounts
described in section 402(a)(2), section 631 (b) and (c), and section
1235 of the Internal Revenue Code of 1954, which are considered to be
gains from the sale or exchange of capital assets) derived from sources
within the United States and paid to nonresident aliens and to
nonresident foreign corporations, whose addresses at the time of payment
were in the Federal Republic of Germany, including such items of income
upon which, in accordance with this part, no withholding of United
States tax is required; except that any of such items which constitute
interest in respect of which Form 1001-GER or substitute Form 1001-GER
has been filed in duplicate with the withholding agent are not required
to be reported on such Form 1042 Supplement.
Sec. 503.8 Beneficiaries of a domestic estate or trust.
A nonresident alien who is a resident of the Federal Republic of
Germany and who is a beneficiary of a domestic estate or trust shall be
entitled to the exemption from United States tax granted by Articles
VII, VIII, and XIV of the convention with respect to dividends,
interest, and copyright royalties and the like, to the extent such item
or items are included in that portion of the income of such estate or
trust which is (or would, but for such exemption, be) includable in the
gross income of the beneficiary, provided that he
[[Page 24]]
otherwise satisfies the requirements of these respective articles. In
order to be entitled in such instance to the exemption from withholding
of United States tax such beneficiary must otherwise satisfy such
requirements and shall, where applicable, execute and submit to the
fiduciary of such estate or trust in the United States the appropriate
letter of notification prescribed in Secs. 503.3(b) and 503.4(b).
Sec. 503.9 Land Berlin.
The convention shall also apply to Land Berlin effective for taxable
years beginning on or after January 1, 1954, but only if the
notification has been furnished to the United States Government in
accordance with Article XX (2) of the convention. After application of
the convention to Land Berlin in accordance with Article XX, references
in the convention and in this part to the Federal Republic of Germany
shall also be considered references to Land Berlin.
PARTS 504-507 [RESERVED]
PART 509--SWITZERLAND--Table of Contents
Subpart--Withholding of Tax
Sec.
509.1 Introductory.
509.2 Dividends.
509.3 Interest.
509.4 Patent and copyright royalties and film rentals.
509.5 Pensions and life annuities.
509.6 Natural resource royalties and real property rentals.
509.7 Release of excess tax withheld at source.
509.8 Addressee not actual owner.
509.9 Return of tax withheld and information return with respect to
persons whose addresses are in Switzerland.
509.10 Beneficiaries of a domestic estate or trust.
Subpart--General Income Tax
509.101 Introductory.
509.102 Applicable provisions of law.
509.103 Scope of the convention.
509.104 Definitions.
509.105 Industrial and commercial profits.
509.106 Control of a United States enterprise by a Swiss enterprise.
509.107 Income from operation of ships or aircraft.
509.108 Dividends.
509.109 Interest.
509.110 Patent and copyright royalties and film rentals.
509.111 Real property income and natural resource royalties.
509.112 Compensation for labor or personal services.
509.113 Government wages, salaries, and pensions.
509.114 Private pensions and life annuities.
509.115 Visiting professors or teachers.
509.116 Students or apprentices.
509.117 Dividends and interest paid by a foreign corporation.
509.118 Credit against United States tax for Swiss tax.
509.119 Exchange of information.
509.120 Double taxation claims.
509.121 Beneficiaries of an estate or trust.
509.122 Swiss partnerships.
Authority: 26 U.S.C. 62, 3791 and 7805.
Subpart--Withholding of Tax
Source: Treasury Decision 5867, 16 FR 11910, Nov. 27, 1951, unless
otherwise noted. Redesignated at 25 FR 14022, Dec. 31, 1960.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Subpart--Withholding of Tax, consisting of Secs. 509.1 through 509.10,
was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31,
1998, the effective date was delayed until Jan. 1, 2000.
Sec. 509.1 Introductory.
The income tax convention between the United States and the Swiss
Confederation, signed May 24, 1951, proclaimed by the President of the
United States on October 1, 1951, and effective as to taxable years
beginning after December 31, 1950 (referred to in this subpart as the
convention), provides in part as follows:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America:
The Federal income taxes, including surtaxes and excess profits
taxes.
(b) In the case of The Swiss Confederation:
The federal, cantonal and communal taxes on income (total income,
earned income, income from property, industrial and commercial profits,
etc.).
(2) The present Convention shall also apply to any other income or
profits tax of a substantially similar character imposed by either
contracting State subsequently to the date of signature of the present
Convention.
[[Page 25]]
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense means the States, the Territories
of Alaska and Hawaii, and the District of Columbia.
(b) The term ``Switzerland'' means The Swiss Confederation.
(c) The term ``permanent establishment'' means a branch, office,
factory, workshop, warehouse or other fixed place of business, but does
not include the casual and temporary use of merely storage facilities,
nor does it include an agency unless the agent has and habitually
exercises a general authority to negotiate and conclude contracts on
behalf of an enterprise or has a stock of merchandise from which he
regularly fills orders on its behalf. An enterprise of one of the
contracting States shall not be deemed to have a permanent establishment
in the other State merely because it carries on business dealings in
such other State through a commission agent, broker or custodian or
other independent agent acting in the ordinary course of his business as
such. The fact that an enterprise of one of the contracting States
maintains in the other State a fixed place of business exclusively for
the purchase of goods or merchandise shall not of itself constitute such
fixed place of business a permanent establishment of such enterprise.
The fact that a corporation of one contracting State has a subsidiary
corporation which is a corporation of the other State or which is
engaged in trade or business in the other State shall not of itself
constitute that subsidiary corporation a permanent establishment of its
parent corporation. The maintenance within the territory of one of the
contracting States by an enterprise of the other contracting State of a
warehouse for convenience of delivery and not for purposes of display
shall not of itself constitute a permanent establishment within that
territory even though offers of purchase have been obtained by an agent
of the enterprise in that territory and transmitted by him to the
enterprise for acceptance.
(d) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``Swiss
enterprise''.
(e) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on in the United States by
a resident (including an individual, fiduciary and partnership) of the
United States or by a United States corporation or other entity; the
term ``United States corporation or other entity'' means a corporation
or other entity created or organized under the law of the United States
or of any State or Territory of the United States.
(f) The term ``Swiss enterprise'' means an industrial or commercial
enterprise or undertaking carried on in Switzerland by an individual
resident in Switzerland or by a Swiss corporation or other entity; the
term ``Swiss corporation or other entity'' means a corporation or
institution or foundation having juridical personality, or a partnership
(association ``en nom collectif'' or ``en commandite''), or other
association without juridical personality, created or organized under
Swiss laws.
(g) The term ``competent authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury; and in the case of Switzerland, the Director
of the Federal Tax Administration as authorized by the Federal
Department of Finances and Customs.
(h) The term ``industrial or commercial profits'' includes
manufacturing, mercantile, mining, financial and insurance profits, but
does not include income in the form of dividends, interest, rents or
royalties, or remuneration for personal services: Provided, however,
that such excepted items of income shall, subject to the provisions of
this Convention, be taxed separately or together with industrial or
commercial profits in accordance with the laws of the contracting
States.
(2) In the application of the provisions of the present Convention
by one of the contracting States any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which such term
has under its own tax laws.
* * * * *
Article VI
(1) The rate of tax imposed by one of the contracting States upon
dividends derived from sources within such State by a resident or
corporation or other entity of the other contracting State not having a
permanent establishment in the former State shall not exceed 15 percent:
Provided, however, that this paragraph shall have no application to
Swiss tax in the case of dividends derived from Switzerland by a Swiss
citizen (who is not also a citizen of the United States) resident in the
United States.
(2) It is agreed, however, that such rate of tax shall not exceed
five percent if the shareholder is a corporation controlling, directly
or indirectly, at least 95 percent of the entire voting power in the
corporation paying the dividend, and if not more than 25 percent of the
gross income of such paying corporation is derived from interest and
dividends, other than interest and dividends received from its own
subsidiary corporations. Such reduction of the rate to five percent
shall not apply if the relationship of the two corporations has been
arranged or is maintained primarily
[[Page 26]]
with the intention of securing such reduced rate.
(3) Switzerland may collect its tax without regard to paragraphs (1)
and (2) of this Article but will make refund of the tax so collected in
excess of the tax computed at the reduced rates provided in such
paragraphs.
Article VII
(1) The rate of tax imposed by one of the contracting States on
interest on bonds, securities, notes, debentures or on any other form of
indebtedness (including mortgages or bonds secured by real property)
derived from sources within such contracting State by a resident or
corporation or other entity of the other contracting State not having a
permanent establishment in the former State shall not exceed five
percent: Provided, however, that this paragraph shall have no
application to Swiss tax in the case of interest derived from
Switzerland by a Swiss citizen (who is not also a citizen of the United
States) resident in the United States.
(2) Switzerland may collect its tax without regard to paragraph (1)
of this Article but will make refund of the tax so collected in excess
of the tax computed at the reduced rate provided in such paragraph.
Article VIII
Royalties and other amounts derived, as consideration for the right
to use copyrights, artistic and scientific works, patents, designs,
plans, secret processes and formulae, trademarks, and other like
property and rights (including rentals and like payments in respect to
motion picture films or for the use of industrial, commercial or
scientific equipment), from sources within one of the contracting States
by a resident or corporation or other entity of the other contracting
State not having a permanent establishment in the former State shall be
exempt from taxation in such former State.
Article IX
(1) Income from real property (including gains derived from the sale
or exchange of such property but not including interest from mortgages
or bonds secured by real property) and royalties in respect of the
operation of mines, quarries, or other natural resources, shall be
taxable only in the contracting State in which such property, mines,
quarries, or other natural resources are situated.
(2) A resident or corporation or other entity of one of the
contracting States deriving any such income from such property within
the other contracting State may, for any taxable year, elect to be
subject to the tax of such other contracting State, on a net basis, as
if such resident or corporation or entity were engaged in trade or
business within such other contracting States through a permanent
establishment therein during such taxable year.
* * * * *
Article XI
(2) Private pensions and life annuities derived from within one of
the contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
(3) The term ``pensions'', as used in this Article, means periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
(4) The term ``life annuities'' as used in this Article, means a
stated sum payable periodically at stated times during life, or during a
specified number of years, under an obligation to make the payments in
return for adequate and full consideration in money or money's worth.
* * * * *
Article XIV
(1) Dividends and interest paid by a corporation other than a United
States domestic corporation shall be exempt from United States tax where
the recipient is a nonresident alien as to the United States resident in
Switzerland or a Swiss corporation, not having a permanent establishment
in the United States.
(2) Dividends and interest paid by a corporation other than a Swiss
corporation shall be exempt from Swiss tax where the recipient is a
resident or corporation of the United States, not having a permanent
establishment in Switzerland.
* * * * *
Article XVI
(1) The competent authorities of the contracting States shall
exchange such information (being information available under the
respective taxation laws of the contracting States) as is necessary for
carrying out the provisions of the present Convention or for the
prevention of fraud or the like in relation to the taxes which are the
subject of the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any person other than
those concerned with the assessment and collection of the taxes which
are the subject of the present Convention. No information shall be
exchanged which would disclose any trade, business, industrial or
professional secret or any trade process.
(2) Each of the contracting States may collect such taxes imposed by
the other contracting State as though such taxes were the taxes of the
former State as will ensure that
[[Page 27]]
the exemption or reduced rate of tax granted under Articles VI, VII,
VIII and XI(2) of the present Convention by such other State shall not
be enjoyed by persons not entitled to such benefits.
(3) In no case shall the provisions of this Article be construed so
as to impose upon either of the contracting States the obligation to
carry out administrative measures at variance with the regulations and
practice of either contracting State or which would be contrary to its
sovereignty, security or public policy or to supply particulars which
are not procurable under its own legislation or that of the State making
application.
* * * * *
Article XIX
(1) The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
Convention within the respective States.
(2) The competent authorities of the two contracting States may
communicate with each other directly for the purpose of giving effect to
the provisions of this Convention.
Article XX
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Berne as soon as possible. It shall
have effect for the taxable years beginning on or after the first day of
January of the year in which such exchange takes place: Provided,
however, that if such exchange takes place on or after October 1 of such
year, Article VI (except paragraph (2) thereof) and Article VII of the
Convention shall have effect only for taxable years beginning on or
after the first day of January of the year immediately following the
year in which such exchange takes place.
(2) The present Convention shall continue effective for a period of
five years beginning with the calendar year in which the exchange of the
instruments of ratification takes place and indefinitely after that
period, but may be terminated by either of the contracting States at the
end of the five-year period or at any time thereafter, provided that at
least six months' prior notice of termination has been given and, in
such event, the present Convention shall cease to be effective for the
taxable years beginning on or after the first day of January next
following the expiration of the six-month period.
* * * * *
As used in this Treasury decision, unless the context otherwise
requires, the terms defined in the above articles of the convention
shall have the meanings so assigned them.
Sec. 509.2 Dividends.
(a) General. Under Article VI of the convention, the rate of tax
imposed with respect to dividends by section 211(a) of the Internal
Revenue Code (relating to nonresident alien individuals not engaged in
trade or business within the United States) and by section 231(a) of the
Internal Revenue Code (relating to foreign corporations not engaged in
trade or business within the United States) is reduced to 15 percent in
the case of dividends received in taxable years beginning on or after
January 1, 1951, from sources within the United States by a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) who is a resident of Switzerland or by a Swiss corporation
if such alien or corporation at no time during the taxable year had a
permanent establishment within the United States. As to what is a Swiss
corporation (see Article II(1)(f) of the convention. Thus, if a
nonresident alien who is a resident of Switzerland performs personal
services within the United States during the calendar year 1952, but has
at no time during such year a permanent establishment within the United
States, he is entitled to the reduced rate of tax with respect to
dividends derived in that year from United States sources, as provided
in Article VI of the convention, even though, by reason of his having
rendered personal services within the United States, he is engaged in
trade or business therein in that year within the meaning of section
211(b) of the Internal Revenue Code. As to what constitutes a permanent
establishment, see Article II(1)(c) of the convention.
In the case of dividends paid on or after January 1, 1951, by any
foreign corporation to a nonresident alien who is a resident of
Switzerland or to a Swiss corporation, not having a permanent
establishment in the United States, no withholding of United States tax
is required. See Article XIV of the convention.
(b) Dividends paid by a United States subsidiary corporation. Under
the provisions of Article VI(2) of the convention, dividends from
sources within the
[[Page 28]]
United States paid by a domestic corporation to a Swiss corporation
controlling, directly or indirectly, at the time the dividend is paid,
95 percent or more of the entire voting power in such domestic
corporation are, when received in taxable years beginning on or after
January 1, 1951, subject to tax at the rate of only 5 percent, if (1)
not more than 25 percent of the gross income of such paying corporation
for the three-year period immediately preceding the taxable year in
which the dividend is paid consists of dividends and interest (other
than dividends and interest paid to such domestic corporation by its own
subsidiary corporations, if any), (2) the relationship between such
domestic corporation and such Swiss corporation has not been arranged or
maintained primarily with the intention of securing such reduced rate of
5 percent, and (3) such Swiss corporation at no time during the taxable
year had a permanent establishment within the United States.
Any domestic corporation which claims or contemplates claiming that
dividends paid or to be paid by it on or after January 1, 1951, are
subject only to the 5 percent rate shall file, as soon as practicable,
with the Commissioner of Internal Revenue, the following information:
(1) The date and place of its organization; (2) the number of
outstanding shares of stock of the domestic corporation having voting
power and the voting power thereof; (3) the person or persons
beneficially owning such stock of the domestic corporation and their
relationship to the Swiss corporation; (4) the amount of gross income,
by years, of the paying corporation for the three-year period
immediately preceding the taxable year in which the dividend is paid;
(5) the amount of interest and dividends, by years, included in the
gross income of such domestic corporation and the amount of interest and
dividends, by years, received by such corporation from its subsidiary
corporations, if any; and (6) the relationship between the domestic
corporation and the Swiss corporation to which it pays the dividends.
As soon as practicable after such information is filed, the
Commissioner of Internal Revenue will determine whether the dividends
concerned fall within the provisions of Article VI(2) of the convention
and may authorize the release of excess tax withheld with respect to
dividends which come within such provisions. In any case in which the
Commissioner of Internal Revenue has notified such domestic corporation
that the dividends come within such provisions, the reduced withholding
rate of 5 percent will apply to any dividends subsequently paid by such
corporation to the Swiss corporation unless the stock ownership of the
domestic corporation, or the character of its income, materially
changes, or unless the Commissioner of Internal Revenue determines that
the relationship between the two corporations is being maintained
primarily with the intention of securing such reduced rate; and, if such
change in stock ownership or character of income occurs, such
corporation shall promptly notify the Commissioner of Internal Revenue
of the then existing facts with respect to such stock ownership or
income.
(c) Effect of address in Switzerland on withholding in case of
dividends. For the purpose of withholding of the tax in the case of
dividends, every nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) whose address is in Switzerland
shall be deemed by United States withholding agents to be a resident of
Switzerland not having a permanent establishment in the United States;
and every corporation whose address is in Switzerland shall be deemed by
such withholding agents to be a Swiss corporation not having a permanent
establishment in the United States.
(d) Rate of withholding. On and after January 1, 1951, withholding
in the case of dividends paid to nonresident aliens (including a
nonresident alien individual, fiduciary, and partnership) and to foreign
corporations, whose addresses are in Switzerland, shall be at the rate
of 15 percent in every case except (1) that in which, prior to the date
of payment of such dividends, the Commissioner of Internal Revenue has
notified the paying corporation that such dividends fall within the
provisions of Article VI (2) of the convention and (2) that in which the
Commissioner of Internal Revenue has, prior to the date of
[[Page 29]]
payment of such dividends, notified the withholding agent that the
reduced rate of tax shall not apply.
The preceding provisions relative to residents of Switzerland and to
Swiss corporations are based upon the assumption that the payee of the
dividend is the actual owner of the capital stock from which the
dividend is derived and consequently is the person liable to the tax
upon such dividend. As to action by the recipient who is not the owner
of the dividend, see Sec. 509.8.
Sec. 509.3 Interest.
(a) General. Interest on bonds, securities, notes, debentures, or
any other form of indebtedness (including interest on obligations of the
United States, obligations of instrumentalities of the United States,
and mortgages and bonds secured by real property) received in taxable
years beginning on or after January 1, 1951, from sources within the
United States by a nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) who is a resident of
Switzerland, or by a Swiss corporation, is subject to United States tax
at the reduced rate of 5 percent under the provisions of Article VII of
the convention if such alien or corporation at no time during the
taxable year had a permanent establishment in the United States.
(b) Application of reduced rate at source. To secure the reduced
rate of tax at the source in the case of coupon bond interest, the
nonresident alien resident in Switzerland or the Swiss corporation shall
submit Form 1001-S, in duplicate, to the paying agent with each
presentation of interest coupons. Such form shall be signed by the owner
of the interest, trustee, or agent and shall show the name and address
of the obligor, the name and address of the owner of such interest, and
the amount of such interest. Such form shall contain a statement that
the owner is a resident of Switzerland or a Swiss corporation and that
such owner has no permanent establishment in the United States.
The reduction in the rate of United States tax contemplated by
Article VII of the convention, insofar as it concerns coupon bond
interest, is applicable only to the owner of such interest. The person
presenting such coupon or on whose behalf it is presented shall, for the
purpose of the reduction, be deemed to be the owner of the interest only
if he is, at the time the coupon is presented for payment, the owner of
the bond from which the coupon has been detached. If the person
presenting the coupon is not the owner of the bond, Form 1001, and not
Form 1001-S, shall be executed.
The original and duplicate ownership certificates, Form 1001-S, must
be forwarded to the Commissioner of Internal Revenue by the withholding
agent with the quarterly return, Form 1012, as provided in existing
regulations with respect to Form 1001. See Sec. 29.143-7 of Regulations
111 (26 CFR 1949 ed. Supps. 29.143-7) [and Sec. 39.143-7 of Regulations
118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)]. Form 1001-S need not
be listed on Form 1012.
In the case of interest coupons presented in Switzerland by a
nonresident alien who is not a resident of Switzerland, or by a foreign
corporation other than a Swiss corporation, ownership certificates, Form
1001, shall be filed as provided in existing regulations without
reference to the provisions of the convention. See Sec. 29.143-4 of
Regulations 111 (26 CFR 1949 ed. Supps. 29.143-4) [and Sec. 39.143-4 of
Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)].
To secure the reduced rate of tax at the source in the case of
interest, other than interest payable by means of coupons, the
nonresident alien who is a resident of Switzerland or the Swiss
corporation shall file Form 1001A-S, in duplicate, with the withholding
agent in the United States. Such form shall be signed by the owner of
the interest, trustee, or agent and shall show the name and address of
the obligor and the name and address of the owner of such interest. Such
form shall contain a statement that the owner is a resident of
Switzerland, or is a Swiss corporation, not having a permanent
establishment in the United States.
Form 1001A-S must be filed for each three-calendar-year period, and
the first such form filed by the taxpayer with any withholding agent
shall be filed not later than 20 days preceding
[[Page 30]]
the date of the first payment of income in such period. If the taxpayer
files such form with the withholding agent in the calendar year 1951, or
in any subsequent calendar year, no additional Form 1001A-S need be
filed prior to the end of the two calendar years immediately following
the calendar year in which such form is so filed unless the Commissioner
of Internal Revenue notifies the withholding agent that an additional
Form 1001A-S must be filed by the taxpayer at any earlier date. If,
after filing such form, the taxpayer ceases to be eligible for the
benefit of the convention, he must promptly notify the withholding
agent. When any change occurs in the ownership of record of the income
on the books of the payor, the reduction in the rate of United States
tax will no longer apply unless Form 1001A-S is duly executed and filed
with the payor by the new owner of record of such income.
The duplicate of Form 1001A-S must be immediately forwarded by the
withholding agent to the Commissioner of Internal Revenue, Records
Division, Washington 25, D.C.
In the case of interest paid on or after January 1, 1951, by any
foreign corporation to a nonresident alien who is a resident of
Switzerland or to a Swiss corporation, not having a permanent
establishment in the United States, no withholding of United States tax
is required. See Article XIV of the convention.
Sec. 509.4 Patent and copyright royalties and film rentals.
Royalties and other amounts received in taxable years beginning on
or after January 1, 1951, from sources within the United States by a
nonresident alien (including a nonresident alien individual, fiduciary,
and partnership) who is a resident of Switzerland or by a Swiss
corporation, as consideration for the right to use copyrights, artistic
and scientific works, patents, designs, plans, secret processes and
formulae, trade-marks, and other like property and rights (including
rentals and like payments in respect to motion picture films or for the
use of industrial, commercial, or scientific equipment), are exempt from
United States tax under the provisions of Article VIII of the convention
if such alien or corporation at no time during the taxable year in which
such royalties or other amounts are received has had a permanent
establishment within the United States. Such items are therefore not
subject to the withholding provisions of the Internal Revenue Code. As
to what constitutes a permanent establishment, see Article II(1)(c) of
the convention.
To obviate withholding at the source in the case of such items, the
nonresident alien who is a resident of Switzerland or the Swiss
corporation shall file Form 1001A-S, in duplicate, with the withholding
agent in the United States. The provisions of Sec. 509.3(b) relating to
the execution and effective period of such form with respect to interest
are equally applicable with respect to the income falling within the
scope of this section.
The duplicate of Form 1001A-S must be immediately forwarded by the
withholding agent to the Commissioner of Internal Revenue, Records
Division, Washington, D.C.
Sec. 509.5 Pensions and life annuities.
Article XI(2) of the convention provides that private pensions and
life annuities derived in taxable years beginning on or after January 1,
1951, from sources within the United States by a nonresident alien
individual who is a resident of Switzerland shall be exempt from United
States tax.
The person paying such income shall be notified by letter from the
resident of Switzerland that the income is exempt from taxation under
the provisions of Article XI (2) and (3) or XI (2) and (4), as the case
may be, of the convention. Such letter shall contain the address of the
individual and a statement that such individual is a resident of
Switzerland. The letter of notification, or a copy thereof, shall be
immediately forwarded by the recipient to the Commissioner of Internal
Revenue, Records Division, Washington, D.C. Such letter shall constitute
authorization to the payor of the income to pay such income without
deduction of the tax at the source unless the Commissioner subsequently
notifies such payor that the tax should be withheld with
[[Page 31]]
respect to payments made after such notification.
Sec. 509.6 Natural resource royalties and real property rentals.
The convention does not change the rate of tax imposed under
existing law upon natural resource royalties and real property rentals.
The withholding of the tax with respect to such items derived from
sources within the United States by nonresident aliens who are residents
of Switzerland and by Swiss corporations is not affected by the
convention. See sections 211(a) and 231(a) of the Internal Code and
Article IX of the convention.
Sec. 509.7 Release of excess tax withheld at source.
(a) General. In order to bring the convention into force and effect
at the earliest practicable date, (1) the reduced rate of tax of 15
percent to be withheld at the source on dividends, (2) the reduced rate
of tax of 5 percent to be withheld at the source on interest, and (3)
the exemption from tax otherwise withheld at the source on patent
royalties, copyright royalties, film rentals, and the like, are hereby
made effective beginning January 1, 1951, in any case in which such
dividends, interest, patent royalties, copyright royalties, film
rentals, and the like, are derived from sources within the United States
by a nonresident alien (including a nonresident alien individual,
fiduciary, and partnership) who is a resident of Switzerland or by a
Swiss corporation.
In the case of every such taxpayer who furnishes to the withholding
agent Form 1001A-S, as prescribed in Sec. 509.3(b) or Sec. 509.4, where
tax at the rate of 30 percent has been withheld on or after January 1,
1951, there shall be released by the withholding agent and paid over to
the person from whom withheld (1) in the case of interest (other than
coupon bond interest), an amount equal to 25 percent of such interest,
and (2) in the case of patent royalties, copyright royalties, film
rentals, and the like, an amount equal to the tax so withheld.
In the case of every such taxpayer who furnishes to the withholding
agent Form 1001-S, in duplicate, where tax at the rate of 28 percent or
30 percent, as the case may be, has been withheld on or after January 1,
1951, from coupon bond interest, there shall be released by the
withholding agent and paid over to the person from whom it was withheld
an amount equal to 25 percent of such interest. Form 1001-S, clearly
marked ``Substitute'' in order to replace any Forms 1001 previously
filed, is to be used solely for such release of excess tax withheld in
1951. One Form 1001-S, in duplicate, may be used to replace two or more
Forms 1001 previously filed in such year. The use of Form 1001-S with
each presentation of interest coupons for the purpose of securing the
reduced rate of tax is set forth in Sec. 509.3(b).
In the case of dividends paid to a nonresident alien (including a
nonresident alien individual, fiduciary, and partnership) whose address
at the time of payment was in Switzerland, or to a Swiss corporation
whose address at the time of payment was in Switzerland, where tax at
the rate of 30 percent has been withheld on or after January 1, 1951,
from such dividends, there shall be released by the withholding agent
and paid over to the person from whom it was withheld an amount equal to
15 percent of such dividends.
(b) Private pensions and life annuities paid in 1951 or subsequent
years. In order to bring the convention into force and effect at the
earliest practicable date, the exemption from tax otherwise withheld at
the source on private pensions and life annuities is hereby made
effective beginning January 1, 1951, in any case in which such pensions
and life annuities are derived from sources within the United States by
a nonresident alien individual who is a resident of Switzerland.
The person paying such income shall be notified by letter from the
resident of Switzerland that the income is exempt from taxation under
the provisions of Article XI (2) and (3), or XI (2) and (4), as the case
may be, of the convention. See Sec. 509.5. Such letter shall constitute
authorization to the payer of such income, where tax at the rate of 30
percent has been withheld on or after January 1, 1951, to release and
pay over to the person from whom it was withheld an amount equal to the
tax so withheld.
[[Page 32]]
(c) Subsidiary's dividends. With respect to a dividend paid on or
after January 1, 1951, by a domestic corporation to a Swiss corporation
whose address is in Switzerland, tax shall be withheld in accordance
with the provisions of Sec. 509.2 unless prior to the date of payment of
such dividend the Commissioner of Internal Revenue has notified the
paying corporation that such dividend falls within the scope of Article
VI(2) of the convention. As soon as practicable after information
required under Sec. 509.2(b) is filed, the Commissioner of Internal
Revenue will determine whether the dividend involved falls within the
scope of Article VI(2) and may authorize the release of the excess tax
withheld with respect to dividends which come within the scope of such
provision.
Sec. 509.8 Addressee not actual owner.
If the first recipient with an address in Switzerland of any
dividend from sources within the United States is a nominee or
representative through whom the dividend flows to a third person, such
recipient in Switzerland will withhold an additional amount of United
States tax equivalent to the difference between the United States tax
which would have been withheld had the convention not been in effect (30
percent as at the date of approval of this Treasury decision) and the 15
percent withheld at the source with respect to such dividend pursuant to
Sec. 509.2(d).
In any case in which a fiduciary or a partnership with an address in
Switzerland receives, otherwise than as a nominee or representative, a
dividend from United States sources, if a beneficiary of such fiduciary
or a partner in such partnership is not entitled to the reduced rate of
tax provided in Article VI of the convention, the fiduciary or
partnership will withhold an additional amount of United States tax with
respect to the portion of such dividend included in such beneficiary's
or partner's net distributive share of the income of such fiduciary or
partnership, as the case may be. The amount of the additional tax is to
be calculated in the same manner as under the preceding paragraph.
The amounts so withheld by such withholding agents in Switzerland,
as well as the amount of tax released with respect to the calendar year
1951 by the withholding agent in the United States in the case of a
dividend flowing to a third person through a nominee or representative
whose address is in Switzerland, will be deposited by such agents in
Swiss francs with the Federal Tax Administration, Berne, Switzerland,
Account: ``Zusatzlicher Steuerruckbehalt USA'' (``Additional tax
withholdings USA''); and the appropriate Swiss form will be filed
therewith. The Federal Tax Administration has arranged that the amounts
so deposited will, after adjustment for tax refunded to persons entitled
to the reduced rate of 15 percent, be periodically remitted by draft in
United States dollars to the Collector of Internal Revenue, Baltimore,
Maryland, U.S.A.
Sec. 509.9 Return of tax withheld and information return with respect to persons whose addresses are in Switzerland.
Every United States withholding agent shall make and file with the
collector, in duplicate, an information return on Form 1042F, in
addition to the withholding return, Form 1042, for the calendar year
1951 and each subsequent calendar year, with respect to:
(a) Dividends from which a tax of 15 percent was withheld from
persons whose addresses are in Switzerland (5 percent in the case of
dividends falling within the scope of the provisions of Article VI(2) of
the Convention);
(b) Interest (other than coupon bond interest reported on Form 1001-
S) from which a tax of 5 percent was withheld from persons who have
furnished to the withholding agent Form 1001A-S;
(c) Royalties and like amounts from which no tax was withheld from
persons who have furnished to the withholding agent Form 1001A-S; and
(d) All other fixed or determinable annual or periodical income paid
to such persons.
Sec. 509.10 Beneficiaries of a domestic estate or trust.
A nonresident alien who is a resident of Switzerland and who is a
beneficiary
[[Page 33]]
of a domestic estate or trust shall be entitled to the exemption from
tax, or reduction in the rate of tax, as the case may be, provided in
Articles VI, VII, and VIII of the convention with respect to dividends,
interest, and royalties to the extent such item or items are included in
his distributive share of the income of such estate or trust. In such
case such beneficiary must, in order to be entitled to the exemption
from, or reduction in the rate of, tax in the case of interest or
royalties, execute Form 1001A-S and file such form with the fiduciary of
such estate or trust in the United States.
Subpart--General Income Tax
Source: Treasury Decision 6149, 20 FR 7587, Oct. 12, 1955; 25 FR
14022, Dec. 31, 1960, unless otherwise noted.
Sec. 509.101 Introductory.
The income tax convention between the United States and the Swiss
Confederation, signed May 24, 1951, and proclaimed by the President of
the United States on October 1, 1951, subject to the understanding
expressed in the protocol of exchange, referred to in this part as the
convention, provides as follows, effective for taxable years beginning
on or after January 1, 1951:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America: The Federal income
taxes, including surtaxes and excess profits taxes.
(b) In the case of The Swiss Confederation: The federal, cantonal
and communal taxes on income (total income, earned income, income from
property, industrial and commercial profits, etc.).
(2) The present Convention shall also apply to any other income or
profits tax of a substantially similar character imposed by either
contracting State subsequently to the date of signature of the present
Convention.
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense means the States, the Territories
of Alaska and Hawaii, and the District of Columbia.
(b) The term ``Switzerland'' means The Swiss Confederation.
(c) The term ``permanent establishment'' means a branch, office,
factory, workshop, warehouse or other fixed place of business, but does
not include the casual and temporary use of merely storage facilities,
nor does it include an agency unless the agent has and habitually
exercises a general authority to negotiate and conclude contracts on
behalf of an enterprise or has a stock of merchandise from which he
regularly fills orders on its behalf. An enterprise of one of the
contracting States shall not be deemed to have a permanent establishment
in the other State merely because it carries on business dealings in
such other State through a commission agent, broker or custodian or
other independent agent acting in the ordinary course of his business as
such. The fact that an enterprise of one of the contracting States
maintains in the other State a fixed place of business exclusively for
the purchase of goods or merchandise shall not of itself constitute such
fixed place of business a permanent establishment of such enterprise.
The fact that a corporation of one contracting State has a subsidiary
corporation which is a corporation of the other State or which is
engaged in trade or business in the other State shall not of itself
constitute that subsidiary corporation a permanent establishment of its
parent corporation. The maintenance within the territory of one of the
contracting States by an enterprise of the other contracting State of a
warehouse for convenience of delivery and not for purposes of display
shall not of itself constitute a permanent establishment within that
territory even though offers of purchase have been obtained by an agent
of the enterprise in that territory and transmitted by him to the
enterprise for acceptance.
(d) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``Swiss
enterprise''.
(e) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on in the United States by
a resident (including an individual, fiduciary and partnership) of the
United States or by a United States corporation or other entity; the
term ``United States corporation or other entity'' means a corporation
or other entity created or organized under the law of the United States
or of any State or Territory of the United States.
(f) The term ``Swiss enterprise'' means an industrial or commercial
enterprise or undertaking carried on in Switzerland by an individual
resident in Switzerland or by a Swiss corporation or other entity; the
term ``Swiss corporation or other entity'' means a corporation or
institution or foundation having juridical personality, or a partnership
(association ``en nom collectif'' or ``en commandite''), or other
association without
[[Page 34]]
juridical personality, created or organized under Swiss laws.
(g) The term ``competent authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury; and in the case of Switzerland, the Director
of the Federal Tax Administration as authorized by the Federal
Department of Finances and Customs.
(h) The term ``industrial or commercial profits'' includes
manufacturing, mercantile, mining, financial and insurance profits, but
does not include income in the form of dividends, interest, rents or
royalties, or remuneration for personal services: Provided, however,
that such excepted items of income shall, subject to the provisions of
this Convention, be taxed separately or together with industrial or
commercial profits in accordance with the laws of the contracting
States.
(2) In the application of the provisions of the present Convention
by one of the contracting States any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which such term
has under its own tax laws.
Article III
(1)(a) A Swiss enterprise shall not be subject to taxation by the
United States in respect of its industrial and commercial profits unless
it is engaged in trade or business in the United States through a
permanent establishment situated therein. If it is so engaged the United
States may impose its tax upon the entire income of such enterprise from
sources within the United States.
(b) A United States enterprise shall not be subject to taxation by
Switzerland in respect of its industrial and commercial profits except
as to such profits allocable to its permanent establishment situated in
Switzerland.
(2) No account shall be taken in determining the tax in one of the
contracting States of the mere purchase of merchandise therein by an
enterprise of the other State.
(3) Where an enterprise of one of the contracting States is engaged
in trade or business in the territory of the other contracting State
through a permanent establishment situated therein, there shall be
attributed to such permanent establishment the industrial or commercial
profits which it might be expected to derive if it were an independent
enterprise engaged in the same or similar activities under the same or
similar conditions and dealing at arm's length with the enterprise of
which it is a permanent establishment.
(4) In the determination of the industrial or commercial profits of
the permanent establishment there shall be allowed as deductions all
expenses which are reasonably applicable to the permanent establishment,
including executive and general administrative expenses so applicable.
(5) The competent authorities of the two contracting States may lay
down rules by agreement for the apportionment of industrial and
commercial profits.
Article IV
Where an enterprise of one of the contracting States, by reason of
its participation in the management or the financial structure of an
enterprise of the other contracting State, makes with or imposes on the
latter, in their commercial or financial relations, conditions different
from those which would be made with an independent enterprise, any
profits which would normally have accrued to one of the enterprises, but
by reason of those conditions have not so accrued, may be included in
the profits of that enterprise and taxed accordingly.
Article V
Income which an enterprise of one of the contracting States derives
from the operation of ships or aircraft registered in that State shall
be taxable only in the State in which such ships or aircraft are
registered.
Article VI
(1) The rate of tax imposed by one of the contracting States upon
dividends derived from sources within such State by a resident or
corporation or other entity of the other contracting State not having a
permanent establishment in the former State shall not exceed 15 percent:
Provided, however, that this paragraph shall have no application to
Swiss tax in the case of dividends derived from Switzerland by a Swiss
citizen (who is not also a citizen of the United States) resident in the
United States.
(2) It is agreed, however, that such rate of tax shall not exceed
five percent if the shareholder is a corporation controlling, directly
or indirectly, at least 95 percent of the entire voting power in the
corporation paying the dividend, and if not more than 25 percent of the
gross income of such paying corporation is derived from interest and
dividends, other than interest and dividends received from its own
subsidiary corporations. Such reduction of the rate to five percent
shall not apply if the relationship of the two corporations has been
arranged or is maintained primarily with the intention of securing such
reduced rate.
(2) Switzerland may collect its tax without regard to paragraphs (1)
and (2) of this Article but will make refund of the tax so collected in
excess of the tax computed at the reduced rates provided in such
paragraphs.
Article VII
(1) The rate of tax imposed by one of the contracting States on
interest on bonds, securities, notes, debentures or on any other form of
indebtedness (including mortgages or
[[Page 35]]
bonds secured by real property) derived from sources within such
contracting State by a resident or corporation or other entity of the
other contracting State not having a permanent establishment in the
former State shall not exceed five percent: Provided, however, that this
paragraph shall have no application to Swiss tax in the case of interest
derived from Switzerland by a Swiss citizen (who is not also a citizen
of the United States) resident in the United States.
(2) Switzerland may collect its tax without regard to paragraph (1)
of this Article but will make refund of the tax so collected in excess
of the tax computed at the reduced rate provided in such paragraph.
Article VIII
Royalties and other amounts derived, as consideration for the right
to use copyrights, artistic and scientific works, patents, designs,
plans, secret processes and formulae, trademarks, and other like
property and rights (including rentals and like payments in respect to
motion picture films or for the use of industrial, commercial or
scientific equipment), from sources within one of the contracting States
by a resident or corporation or other entity of the other contracting
State not having a permanent establishment in the former State shall be
exempt from taxation in such former State.
Article IX
(1) Income from real property (including gains derived from the sale
or exchange of such property but not including interest from mortgages
or bonds secured by real property) and royalties in respect of the
operation of mines, quarries, or other natural resources, shall be
taxable only in the contracting State in which such property, mines,
quarries, or other natural resources are situated.
(2) A resident or corporation or other entity of one of the
contracting States deriving any such income from such property within
the other contracting State may, for any taxable year, elect to be
subject to the tax of such other contracting State, on a net basis, as
if such resident or corporation or entity were engaged in trade or
business within such other contracting State through a permanent
establishment therein during such taxable year.
Article X
(1) An individual resident of Switzerland shall be exempt from
United States tax upon compensation for labor or personal services
performed in the United States (including the practice of the liberal
professions and rendition of services as director) if he is temporarily
present in the United States for a period or periods not exceding a
total of 188 days during the taxable year and either of the following
conditions is met:
(a) His compensation is received for such labor or personal services
performed as an employee of, or under contract with, a resident or
corporation or other entity of Switzerland, or
(b) His compensation received for such labor or personal services
does not exceed $10,000.
(2) The provisions of paragraph (1) of this Article shall apply
mutatis mutandis, to an individual resident of the United States with
respect to compensation for such labor or personal services performed in
Switzerland.
(3) The provisions of this Article shall have no application to the
income to which Article XI (1) relates.
(4) The provisions of paragraph (1)(a) of this Article shall not
apply to the compensation, profits, emoluments or other remuneration of
public entertainers such as stage, motion picture or radio artists,
musicians and athletes.
Article XI
(1)(a) Wages, salaries and similar compensation, and pensions paid
by the United States or by the political subdivisions or territories
thereof to an individual (other than a Swiss citizen who is not also a
citizen of the United States) shall be exempt from Swiss tax.
(b) Wages, salaries and similar compensation and pensions paid by
Switzerland or by any agency or instrumentality thereof or by any
political subdivisions or other public authorities thereof to an
individual (other than a United States citizen who is not also a citizen
of Switzerland) shall be exempt from United States tax.
(2) Private pensions and life annuities derived from within one of
the contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
(3) The term ``pensions'', as used in this Article, means periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
(4) The term ``life annuities'' as used in this Article, means a
stated sum payable periodically at stated times during life, or during a
specified number of years, under an obligation to make the payments in
return for adequate and full consideration in money or money's worth.
Article XII
A professor or teacher, a resident of one of the contracting States,
who temporarily visits the other contracting State for the purpose of
teaching for a period not exceeding two years at a university, college,
school or other educational institution in the other contracting State,
shall be exempted in such
[[Page 36]]
other contracting State from tax on his remuneration for such teaching
for such period.
Article XIII
A student or apprentice, a resident of one of the contracting
States, who temporarily visits the other contracting State exclusively
for the purposes of study or for acquiring business or technical
experience shall not be taxable in the latter State in respect of
remittances received by him from abroad for the purposes of his
maintenance or studies.
Article XIV
(1) Dividends and interest paid by a corporation other than a United
States domestic corporation shall be exempt from United States tax where
the recipient is a nonresident alien as to the United States resident in
Switzerland or a Swiss corporation, not having a permanent establishment
in the United States.
(2) Dividends and interest paid by a corporation other than a Swiss
corporation shall be exempt from Swiss tax where the recipient is a
resident or corporation of the United States, not having a permanent
establishment in Switzerland.
Article XV
(1) It is agreed that double taxation shall be avoided in the
following manner:
(a) The United States in determining its taxes specified in Article
I of this Convention in the case of its citizens, residents or
corporations may, regardless of any other provision of this Convention,
include in the basis upon which such taxes are imposed all items of
income taxable under the revenue laws of the United States as if this
Convention had not come into effect. The United States shall, however,
subject to the provisions of section 131, Internal Revenue Code, as in
effect on the date of the entry into force of this Convention, deduct
from its taxes the amount of Swiss taxes specified in Article I of this
Convention. It is agreed that by virtue of the provisions of
subparagraph (b) of this paragraph, Switzerland satisfies the similar
credit requirement set forth in section 131(a)(3), Internal Revenue
Code.
(b) Switzerland, in determining its taxes specified in Article I of
this Convention in the case of its residents, corporations or other
entities, shall exclude from the basis upon which such taxes are imposed
such items of income as are dealt with in this Convention, derived from
the United States and not exempt from, and not entitled to the reduced
rate of, United States tax under this Convention; but in the case of a
citizen of the United States resident in Switzerland there shall be
excluded all items of income derived from the United States.
Switzerland, however, reserves the right to take into account in the
determination of the rate of its taxes also the income excluded as
provided in this paragraph.
(2) The provisions of this Article shall not be construed to deny
the exemptions from United States tax or Swiss tax, as the case may be,
granted by Article XI (1) of this Convention.
Article XVI
(1) The competent authorities of the contracting States shall
exchange such information (being information available under the
respective taxation laws of the contracting States) as is necessary for
carrying out the provisions of the present Convention or for the
prevention of fraud or the like in relation to the taxes which are the
subject of the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any person other than
those concerned with the assessment and collection of the taxes which
are the subject of the present Convention. No information shall be
exchanged which would disclose any trade, business, industrial or
professional secret or any trade process.
(2) Each of the contracting States may collect such taxes imposed by
the other contracting State as though such taxes were the taxes of the
former State as will ensure that the exemption or reduced rate of tax
granted under Articles VI, VII, VIII and XI(2) of the present Convention
by such other State shall not be enjoyed by persons not entitled to such
benefits.
(3) In no case shall the provisions of this Article be construed so
as to impose upon either of the contracting States the obligation to
carry out administrative measures at variance with the regulations and
practice of either contracting State or which would be contrary to its
sovereignty, security or public policy or to supply particulars which
are not procurable under its own legislation or that of the State making
application.
Article XVII
(1) Where a taxpayer shows proof that the action of the tax
authorities of the contracting States has resulted, or will result, in
double taxation contrary to the provisions of the present Convention, he
shall be entitled to present the facts to the State of which he is a
citizen or a resident, or, if the taxpayer is a corporation or other
entity, to the State in which it is created or organized. Should the
taxpayer's claim be deemed worthy of consideration, the competent
authority of such State shall undertake to come to an agreement with the
competent authority of the other State with a view to equitable
avoidance of the double taxation in question.
(2) Should any difficulty or doubt arise as to the interpretation or
application of the
[[Page 37]]
present Convention, or its relationship to Conventions between one of
the contracting States and any other State, the competent authorities of
the contracting States may settle the question by mutual agreement.
Article XVIII
(1) The provisions of this Convention shall not be construed to deny
or affect in any manner the right of diplomatic and consular officers to
other or additional exemptions now enjoyed or which may hereafter be
granted to such officers.
(2) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance now or hereafter accorded by the laws of one of the
contracting States in the determination of the tax imposed by such
State.
(3) The citizens of one of the contracting States shall not, while
resident in the other contracting State, be subjected therein to other
or more burdensome taxes than are the citizens of such other contracting
State residing in its territory. The term ``citizens'' as used in this
Article includes all legal persons, partnerships and associations
created or organized under the laws in force in the respective
contracting States. In this Article the word ``taxes'' means taxes of
every kind or description, whether Federal, State, cantonal, municipal
or communal.
Article XIX
(1) The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
Convention within the respective States.
(2) The competent authorities of the two contracting States may
communicate with each other directly for the purpose of giving effect to
the provisions of this Convention.
Article XX
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Berne as soon as possible. It shall
have effect for the taxable years beginning on or after the first day of
January of the year in which such exchange takes place: Provided,
however, that if such exchange takes place on or after October 1 of such
year, Article VI (except paragraph (2) thereof) and Article VII of the
Convention shall have effect only for taxable years beginning on or
after the first day of January of the year immediately following the
year in which such exchange takes place.
(2) The present Convention shall continue effective for a period of
five years beginning with the calendar year in which the exchange of the
instruments of ratification takes place and indefinitely after that
period, but may be terminated by either of the contracting States at the
end of the five-year period or at any time thereafter, provided that at
least six months' prior notice of termination has been given and, in
such event, the present Convention shall cease to be effective for the
taxable years beginning on or after the first day of January next
following the expiration of the six-month period.
Done at Washington, in duplicate, in the English and German
languages, the two texts having equal authenticity, this 24th day of
May, 1951.
For the President of the United States of America:
[seal]
Dean Acheson.
For the Swiss Federal Council:
[seal]
Charles Bruggmann.
Proclamation by the President of the United States Dated October 1, 1951
* * * * *
And whereas the Senate of the United States of America, by their
resolution of September 17, 1951, two-thirds of the Senators present
concurring therein, did advise and consent to the ratification of the
aforesaid convention, subject to a reservation, as follows:
``The Government of the United States of America does not accept
paragraph (4) of Article X of the Convention, relating to the profits or
remuneration of public entertainers.''
And whereas the text of the aforesaid reservation was communicated
by the Government of the United States of America to the Government of
the Swiss Confederation and the aforesaid reservation was accepted by
the Government of the Swiss Confederation;
And whereas the aforesaid convention was duly ratified by the
President of the United States of America on September 20, 1951, in
pursuance of the aforesaid advice and consent of the Senate and subject
to the aforesaid reservation, and the aforesaid convention was duly
ratified on the part of the Swiss Confederation;
And whereas the respective instruments of ratification of the
aforesaid convention were duly exchanged at Bern on September 27, 1951,
and a protocol of exchange of instruments of ratification, in the
English and French languages, was signed at that place and on that date
by the respective Plenipotentiaries of the United States of America and
the Swiss Confederation, the said protocol containing a statement that
it is understood by the two Governments that the convention aforesaid,
upon entry into force in accordance with its provisions, is modified in
accordance with the aforesaid reservation,
[[Page 38]]
so that, in effect, paragraph (4) of Article X of the convention is
deemed to be deleted;
And whereas, so far as appertains to an exchange of instruments of
ratification prior to October 1 of any year, it is provided in Article
XX of the aforesaid convention that upon the exchange of instruments of
ratification the convention shall have effect for the taxable years
beginning or [sic] or after the first day of January of the year in
which such exchange takes place;
Now, therefore, be it known that I, Harry S. Truman, President of
the United States of America, do hereby proclaim and make public the
aforesaid convention to the end that the said convention and each and
every article and clause thereof, subject to the aforesaid reservation,
may be observed and fulfilled with good faith by the United States of
America and by the citizens of the United States of America and all
other persons subject to the jurisdiction thereof.
* * * * *
Sec. 509.102 Applicable provisions of law.
(a) General. The Internal Revenue Code of 1954 provides in part as
follows:
Subtitle A--Income Taxes
* * * * *
Sec. 894. Income exempt under treaty. Income of any kind, to the
extent required by any treaty obligation of the United States, shall not
be included in gross income and shall be exempt from taxation under this
subtitle.
* * * * *
Subtitle F--Procedure and Administration
* * * * *
Sec. 7805. Rules and regulations--(a) Authorization. Except where
such authority is expressly given by this title to any person other than
an officer or employee of the Treasury Department, the Secretary or his
delegate shall prescribe all needful rules and regulations for the
enforcement of this title, including all rules and regulations as may be
necessary by reason of any alteration of law in relation to internal
revenue.
(b) Retroactivity of regulations or rulings. The Secretary or his
delegate may prescribe the extent, if any, to which any ruling or
regulation, relating to the internal revenue laws, shall be applied
without retroactive effect.
* * * * *
(b) Internal Revenue Code of 1939. Any reference in Secs. 509.101 to
509.122 to any provision of the Internal Revenue Code of 1954 shall,
where applicable, be deemed also to refer to the corresponding provision
of the Internal Revenue Code of 1939.
(c) Effective date of regulations. Pursuant to sections 894 and 7805
of the Internal Revenue Code of 1954, Article XIX of the convention, and
other provisions of the internal revenue laws, Secs. 509.101 to 509.122
are hereby prescribed effective for taxable years beginning on or after
January 1, 1951. All regulations inconsistent herewith are modified
accordingly.
Sec. 509.103 Scope of the convention.
(a) Purposes of convention. The primary purposes of the convention,
to be accomplished on a reciprocal basis, are to avoid double taxation
upon certain items of income derived from sources in one country by
residents or corporations or other entities of the other country and to
provide for administrative cooperation between the competent tax
authorities of the two countries looking to the avoidance of double
taxation and the prevention of fiscal evasion.
(b) Exemption from United States tax. The following items of income
from sources within the United States are exempt from United States tax
for taxable years beginning on or after January 1, 1951, subject to the
respective articles of the convention:
(1) Industrial and commercial profits of a Swiss enterprise having
no permanent establishment in the United States (Article III);
(2) Income derived by a Swiss enterprise from the operation of ships
or aircraft registered in Switzerland (Article V);
(3) Patent and copyright royalties, and other like amounts,
including motion picture film rentals, derived by a nonresident alien
who is a resident of Switzerland, or by a Swiss corporation or other
entity, if such alien, corporation, or other entity has no permanent
establishment in the United States (Article VIII);
[[Page 39]]
(4) Compensation, subject to certain limitations, for personal
services performed in the United States by a nonresident alien
individual who is a resident of Switzerland (Article X);
(5) Compensation and pensions paid by Switzerland to an alien
individual, and to a citizen of Switzerland who is also a citizen of the
United States, including such items as are from sources without the
United States (Article XI);
(6) Private pensions and life annuities paid to a nonresident alien
individual who is a resident of Switzerland (Article XI);
(7) Remuneration derived from certain teaching in the United States
by a professor or teacher who is a nonresident alien residing in
Switzerland (Article XII); and
(8) Dividends and interest paid by a foreign corporation to a
nonresident alien who is a resident of Switzerland, or to a Swiss
corporation, if such alien or corporation has no permanent establishment
in the United States (Article XIV).
(c) Students or apprentices. Remittances received from abroad for
the purpose of maintenance or studies by a student or apprentice, a
nonresident alien residing in Switzerland, who is temporarily present in
the United States under specified circumstances are also exempt from
United States tax (Article XIII).
(d) Reduced rates of United States tax. Dividends and interest
derived from sources within the United States by a nonresident alien who
is a resident of Switzerland, or by a Swiss corporation or other entity,
are subject to United States tax at reduced rates, if such alien,
corporation, or other entity has no permanent establishment in the
United States (Articles VI and VII).
(e) Withholding regulations. For regulations pertaining to the
release of excess tax withheld, and to exemption from, or reduction in
the rate of, withholding of United States tax at source, in the case of
dividends, interest, patent and copyright royalties, film rentals,
private pensions, and life annuities, received from sources within the
United States by a nonresident alien who is a resident of Switzerland,
or by a Swiss corporation or other entity, see Treasury Decision 5867,
approved November 21, 1951 (Secs. 509.1 to 509.10).
(f) United States citizens, residents, and corporations. (1) Any
citizen of Switzerland who is a resident of the United States is liable
to United States tax as though the convention had not come into effect;
however, such alien resident of the United States is entitled to the
foreign tax credit in accordance with Article XV and is also entitled to
the benefits of Article XI (1) and Article XVIII.
(2) A citizen of the United States, even though resident in
Switzerland, or a domestic corporation, even though engaged in trade or
business in Switzerland through a permanent establishment situated
therein, is also liable to United States tax as though the convention
had not come into effect but is entitled to the foreign tax credit and,
to the extent, applicable, to the benefits of Article XI (1).
(g) Other provisions applicable to Swiss residents and corporations.
Except as otherwise expressly provided by the convention, the United
States tax liability of a nonresident alien who is a resident of
Switzerland, or of a Swiss corporation or other entity, is determined in
accordance with the provisions of the Internal Revenue Code of 1954
relating to nonresident alien individuals and foreign corporations.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 509.103 was amended by removing and reserving paragraph (e),
effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the
effective date was delayed until Jan. 1, 2000.
Sec. 509.104 Definitions.
(a) General. Any term defined in the convention or Secs. 509.101 to
509.122 shall have the meaning so assigned to it; any term not so
defined shall, unless the context otherwise requires, have the meaning
which such term has under the internal revenue laws of the United
States.
(b) Specific terms. As used in Secs. 509.101 to 509.122--
(1) United States tax. The term ``United States tax'' means the
Federal income taxes, including surtaxes and excess profits taxes, and
any other income or profits tax of a substantially
[[Page 40]]
similar character imposed by the United States after May 24, 1951.
(2) Swiss tax. The term ``Swiss tax'' means the federal, cantonal,
and communal taxes on income--that is, on total income, earned income,
income from property, industrial and commercial profits, etc.--and any
other income or profits tax of a substantially similar character imposed
by Switzerland after May 24, 1951.
(3) United States. The term ``United States'' means the United
States of America; and, when used in a geographical sense, means the
States, the Territories of Alaska and Hawaii, and the District of
Columbia.
(4) Switzerland. The term ``Switzerland'' means the Swiss
Confederation.
(5) Permanent establishment--(i) Fixed place of business. The term
``permanent establishment'' means an office, factory, workshop,
warehouse, branch, or other fixed place of business, but does not
include the casual and temporary use of merely storage facilities. It
implies the active conduct of a business enterprise. The mere ownership,
for example, of timberlands or a warehouse in the United States by a
Swiss enterprise does not mean that such enterprise, in the absence of
any business activity therein, has a permanent establishment in the
United States. Moreover, the maintenance within the United States by a
Swiss enterprise of a warehouse for convenience of delivery, and not for
purposes of display, does not of itself constitute a permanent
establishment in the United States, even though offers of purchase have
been obtained by an agent therein of the Swiss enterprise and
transmitted by him to the Swiss enterprise for acceptance. The fact that
a Swiss enterprise maintains in the United States an office or other
fixed place of business used exclusively for the purchase for such
enterprise of goods or merchandise shall not of itself constitute such
fixed place of business a permanent establishment of such enterprise.
(ii) Subsidiary corporation. The fact that a Swiss corporation has a
domestic subsidiary corporation, or a foreign subsidiary corporation
which is engaged in trade or business in the United States through a
permanent establishment situated therein, does not of itself constitute
either subsidiary corporation the United States permanent establishment
of the Swiss parent corporation.
(iii) Agency. A Swiss enterprise which has an agency in the United
States does not thereby have a permanent establishment in the United
States, unless the agent has, and habitually exercises, a general
authority to negotiate and conclude contracts on behalf of such
enterprise or unless he has a stock of merchandise from which he
regularly fills orders on its behalf. If the enterprise has an agent in
the United States who has power to contract on its behalf, but only at
fixed prices and under conditions determined by such principal, it does
not thereby necessarily have a permanent establishment in the United
States. The mere fact that an agent of a Swiss enterprise--assuming he
has no general authority to negotiate and conclude contracts on behalf
of his principal--maintains samples, or occasionally fills orders from
incidental stocks of goods maintained, in the United States does not of
itself mean that such enterprise has a permanent establishment in the
United States. The mere fact that salesmen, employees of a Swiss
enterprise, promote the sale of their employer's products in the United
States or that a Swiss enterprise transacts business in the United
States by means of mail order activities does not mean that such
enterprise has a permanent establishment in the United States. A Swiss
enterprise shall not be deemed to have a permanent establishment in the
United States merely because it carries on business dealings in the
United States through a commission agent, broker, custodian, or other
independent agent, acting in the ordinary course of his business as
such.
(6) Enterprise. The term ``enterprise'' means any commercial or
industrial enterprise or undertaking carried on by any person, for
example, by an individual partnership, or corporation. It includes such
activites as manufacturing, merchandising, mining, processing, banking,
and insuring. It does not include the rendition of personal services.
Hence, a nonresident alien individual who is resident of Switzerland and
who performs personal services is
[[Page 41]]
not, merely by reason of such services, engaged in a Swiss enterprise
within the meaning of the convention; consequently, his liability to
United States tax is not determined under Article III of the convention,
if he has not otherwise carried on a Swiss enterprise.
(7) Swiss enterprise. The term ``Swiss enterprise'' means an
enterprise carried on in Switzerland by a nonresident alien individual
who is a resident of Switzerland, or by a Swiss corporation or other
entity. Thus, an enterprise carried on wholly outside Switzerland by a
Swiss corporation is not a Swiss enterprise within the meaning of the
convention.
(8) Swiss corporation or other entity. The term ``Swiss corporation
or other entity'' means a corporation or institution or foundation
having juridical personality, or a partnership (association ``en nom
collectif'' or ``en commandite''), or other association without
juridical personality, created or organized under Swiss laws.
(9) United States enterprise. The term ``United States enterprise''
means an enterprise carried on in the United States by a resident of the
United States (including an individual, fiduciary, and partnership) or
by a United States corporation or other entity.
(10) United States corporation or other entity. The term ``United
States corporation or other entity'' means a corporation or other entity
created or organized under the law of the United States or of any State
or Territory of the United States.
(11) Industrial and commercial profits. The term ``industrial and
commercial profits'' means profits arising from industrial, commercial,
mercantile, manufacturing, and like activities of an enterprise,
including mining, financial and insurance profits. It does not include
income in the form of dividends, interests, rents, royalties, or
remuneration for personal services. In determining the industrial and
commercial profits from sources within the United States of a Swiss
enterprise, no profits shall be deemed to arise from the mere purchase
of goods or merchandise within the United States by such enterprise.
Moreover, in determining such profits of the United States permanent
establishment of such enterprise, there shall be allowed as deductions
all expenses which are reasonably applicable to the permanent
establishment, including executive and general administrative expenses
so applicable. See sections 861 through 864, Internal Revenue Code of
1954, and the regulations thereunder.
(12) Commissioner. The term ``Commissioner'' means the Commissioner
of Internal Revenue or his authorized representative.
(13) Director of the Federal Tax Administration. The term ``Director
of the Federal Tax Administration'' means the Director of the Federal
Tax Administration (Direktor der eidgenoessischen Steuerverwaltung) of
Switzerland.
Sec. 509.105 Industrial and commercial profits.
(a) General. (1) Article III of the convention adopts the principle
that an enterprise of one of the contracting States shall not be taxable
by the other contracting State upon its industrial and commercial
profits unless it is engaged in trade or business in the latter State
through a permanent establishment situated therein. Accordingly, a Swiss
enterprise is subject to United States tax upon its industrial and
commercial profits, to the extent of such profits from sources within
the United States, only if it is engaged in trade or business in the
United States at some time during the taxable year through a permanent
establishment situated therein.
(2) From the standpoint of the United States tax the article has
application only to a Swiss enterprise and its industrial and commercial
profits from sources within the United States. Thus, a nonresident alien
individual who is a citizen of Switzerland, or a Swiss corporation or
other entity, carrying on an enterprise which is not Swiss, is subject
to tax on such income of such enterprise pursuant to section 871(c) or
section 882(a), Internal Revenue Code of 1954, if such alien,
corporation, or other entity has engaged in trade or business in the
United States at any time during the taxable
[[Page 42]]
year, even though it has not had a permanent establishment therein at
any time within such year.
(b) No United States permanent establishment. A Swiss enterprise is
not subject to United States tax upon its industrial and commercial
profits from sources within the United States, nor shall such profits be
included in gross income, if it has not at any time during the taxable
year engaged in trade or business in the United States through a
permanent establishment situated therein. For example, if during the
taxable year an enterprise carried on in Switzerland by a nonresident
alien individual who is a resident of Switzerland, or by a Swiss
corporation, were to sell merchandise, such as watches, dairy products,
or liqueurs, in the United States through a commission agent or broker
in the United States acting in the ordinary course of his business as
such agent or broker, the profits arising from such sale would not be
included in gross income and would be exempt from United States tax
under Article III of the convention. Similarly, if during the taxable
year such enterprise were to secure orders in the United States for such
merchandise through its sales agents whose sole function in the United
States is sales promotion, the orders being transmitted to Switzerland
for acceptance, then the profits arising from such sales would not be
included in gross income and would be exempt from United States tax.
(c) United States permanent establishment--(1) General. A Swiss
enterprise is subject to United States tax upon its industrial and
commercial profits from sources within the United States to the same
extent as are nonresident aliens or foreign corporations which are
subject to tax pursuant to section 871(c) or section 882(a), Internal
Revenue Code of 1954, if such enterprise has at any time during the
taxable year engaged in trade or business in the United States through a
permanent establishment situated therein. If it is so engaged, it is
subject to United States tax upon its entire income from sources within
the United States except to the extent otherwise exempt from United
States tax.
(2) Allocation of profits. In the determination of the income
taxable to such enterprise for purposes of the United States tax, all
industrial and commercial profits from sources within the United States
shall be deemed to be allocable to the permanent establishment in the
United States. Hence, if a Swiss enterprise which has a permanent
establishment in the United States at some time during the taxable year
were to sell in the United States, through a commission agent therein
acting in the ordinary course of his business as such, merchandise which
has been produced in Switzerland, the profits arising from such sale
would be allocable to the permanent establishment to the extent they are
derived from sources within the United States, even though the sale is
made independently of the permanent establishment.
(3) Independent basis. The industrial and commercial profits of the
permanent establishment in the United States shall be determined as if
the establishment were an independent enterprise engaged in the same or
similar activities under the same or similar conditions and dealing at
arm's length, or on an independent basis, with the enterprise of which
it is a permanent establishment.
Sec. 509.106 Control of a United States enterprise by a Swiss enterprise.
In effect, Article IV of the convention provides that, if a Swiss
enterprise by reason of its control of a United States enterprise
imposes on the latter enterprise conditions different from those which
would result from normal business relations between independent
enterprises, the accounts between the enterprises shall be adjusted in
order to ascertain the true taxable income of each enterprise. The
purpose is to place the controlled United States enterprise on a tax
parity with an uncontrolled United States enterprise by determining,
according to the standard of an uncontrolled enterprise, the true
taxable income from the property and business of the controlled
enterprise. The basic objective of the article is that, if the
accounting records do not truly reflect the taxable income from the
property and business of the United States enterprise, the Commissioner
[[Page 43]]
shall intervene and, by making such distributions, apportionments, or
allocations as he may deem necessary of gross income, deductions,
credits, or allowances, or of any item or element affecting taxable
income, between the United States enterprise and the Swiss enterprise by
which it is controlled or directed, shall determine the true taxable
income of the United States enterprise. The provisions of section 482 of
the Internal Revenue Code of 1954, and the regulations thereunder,
shall, insofar as applicable, be followed in the determination of the
taxable income of the United States enterprise.
Sec. 509.107 Income from operation of ships or aircraft.
Under Article V of the convention so much of the income from sources
within the United States of a Swiss enterprise as consists of earnings
derived from the operation of ships or aircraft documented or registered
in Switzerland shall not be included in gross income and shall be exempt
from United States tax, even though at some time during the taxable year
such enterprise has engaged in trade or business in the United States
through a permanent establishment situated therein.
Sec. 509.108 Dividends.
(a) General. (1) The rate of United States tax imposed by the
Internal Revenue Code of 1954 upon dividends derived from sources within
the United States by a nonresident alien individual who is a resident of
Switzerland, or by a Swiss corporation or other entity, shall not exceed
15 percent under the provisions of Article VI of the convention, if such
alien, corporation, or other entity at no time during the taxable year
in which such dividends are derived has a permanent establishment in the
United States.
(2) If, for example, a nonresident alien individual who is a
resident of Switzerland performs personal services within the United
States during the taxable year, but has at no time during such year a
permanent establishment within the United States, he is entitled to the
reduced rate of tax with respect to dividends derived in that year from
United States sources, as provided in Article VI of the convention, even
though under the provisions of section 871(c) of the Internal Revenue
Code of 1954 he has engaged in trade or business within the United
States during such year by reason of his having performed personal
services therein.
(b) Dividends paid by related corporation. The rate of United States
tax imposed by the Internal Revenue Code of 1954 upon dividends derived
from sources within the United States by a Swiss corporation shall not
exceed 5 percent under the provisions of Article VI (2) of the
convention if:
(1) The Swiss corporation is a shareholder which controls, directly
or indirectly, at the time the dividend is paid 95 percent or more of
the entire voting power in the corporation paying the dividend;
(2) Not more than 25 percent of the gross income of the paying
corporation for the three-year period immediately preceding the taxable
year in which the dividend is paid consists of dividends and interest
(other than dividends and interest received by such paying corporation
from its own subsidiary corporations, if any);
(3) The relationship between the paying corporation and the Swiss
corporation has not been arranged or maintained primarily with the
intention of securing the reduced rate of 5 percent; and
(4) The Swiss corporation at no time during the taxable year in
which such dividends are derived has a permanent establishment in the
United States.
Sec. 509.109 Interest.
The rate of United States tax imposed by the Internal Revenue Code
of 1954 upon interest on bonds, securities, notes, debentures, or on any
other form of indebtedness, including interest on obligations of the
United States, obligations of instrumentalities of the United States,
and mortgages and bonds secured by real property, which is derived from
sources within the United States by a nonresident alien individual who
is a resident of Switzerland, or by a Swiss corporation or other entity,
shall not exceed 5 percent under the provisions of Article VII of the
convention, if such alien, corporation, or other entity at no time
during the taxable year in which such interest
[[Page 44]]
is derived has a permanent establishment in the United States.
Sec. 509.110 Patent and copyright royalties and film rentals.
Royalties and other amounts representing consideration for the right
to use copyrights, artistic and scientific works, patents, designs,
plans, secret processes and formulae, trademarks, and other like
property and rights, including rentals and like payments in respect to
motion picture films or for the use of industrial, commercial, or
scientific equipment, which are derived from sources within the United
States by a nonresident alien individual who is a resident of
Switzerland, or by a Swiss corporation or other entity, are exempt from
United States tax under the provisions of Article VIII of the convention
if such alien, corporation, or other entity at no time during the
taxable year in which such items of income are derived has a permanent
establishment in the United States.
Sec. 509.111 Real property income and natural resource royalties.
(a) General. Income of whatever nature derived by a nonresident
alien who is a resident of Switzerland, or by a Swiss corporation or
other entity, from real property situated in the United States,
including gains derived from the sale or exchange of such property,
rentals from such property, and royalties in respect of the operation of
mines, quarries, or other natural resources situated in the United
States, is not exempt from United States tax by the convention. Such
items of income are subject to taxation under the provisions of the
Internal Revenue Code of 1954 generally applicable to the taxation of
nonresident alien individuals and foreign corporations. See Article IX
of the convention. Interest derived from mortgages and bonds secured by
real property does not constitute income from real property for purposes
of this section but is subject to the provisions applicable to interest
generally. See Sec. 509.109.
(b) Net basis--(1) General. Notwithstanding the provisions of
paragraph (a) of this section, a nonresident alien who is a resident of
Switzerland, or a Swiss corporation or other entity, who during the
taxable year derives from sources within the United States any income
from real property as described in such paragraph may elect for such
taxable year to be subject to United States tax on a net basis as though
such alien, corporation, or other entity were engaged in trade or
business in the United States during such year through a permanent
establishment situated therein.
(2) Manner of electing. Such nonresident alien (including an
individual, fiduciary, and member of a partnership) shall signify his
election to be subject to tax on such a basis by filing Form 104B
clearly marked at the top of the first page thereof as follows: ``Return
of Resident of Switzerland Electing to File on a Net Basis Pursuant to
Article IX of Swiss Income Tax Convention''. Such corporation shall
signify its election to be subject to tax on such a basis by filing Form
1120 clearly marked at the top of the first page there of as follows:
``Return of Swiss Corporation Electing to File on a Net Basis Pursuant
to Article IX of Swiss Income Tax Convention''. The election so
signified shall be irrevocable for the taxable year for which such
election is made. All income from sources within the United States,
including gains from the sale or exchange of capital assets or of other
property, shall be disclosed on the return so filed. See sections 871
and 882 of the Internal Revenue Code of 1954 and the regulations
thereunder.
Sec. 509.112 Compensation for labor or personal services.
(a) Exemption from tax. Under Article X of the convention
compensation received by a nonresident alien individual who is a
resident of Switzerland for labor or personal services, including the
practice of the liberal professions and the rendition of services as a
director, performed in the United States shall not be included in gross
income and shall be exempt from United States tax in either of the
following situations:
(1) Swiss employer. Where such individual is temporarily present in
the United States for a period or periods not exceeding in the aggregate
a total of 183 days during a taxable year beginning on or after January
1, 1951, any
[[Page 45]]
compensation received by him (irrespective of when received, if received
in taxable years beginning on or after January 1, 1951) for such labor
or personal services performed in the United States during such year as
an employee of, or under contract with, a nonresident alien (including a
nonresident alien individual and fiduciary) who is a resident of
Switzerland, or a Swiss corporation or other entity, whether or not such
alien, corporation, or other entity is engaged in trade or business
within the United States, shall not be included in gross income and
shall be exempt from United States tax.
(2) Other employers. Where such individual is temporarily present in
the United States for a period or periods not exceeding in the aggregate
a total of 183 days during a taxable year beginning on or after January
1, 1951, any compensation received by him (irrespective of when
received, if received in taxable years beginning on or after January 1,
1951) for such labor or personal services performed in the United States
during such year shall not be included in gross income and shall be
exempt from United States tax if such compensation does not exceed
$10,000 in the aggregate. Thus, if a nonresident alien individual who is
a resident of Switzerland performs personal services in the United
States during the taxable year as an employee of a domestic corporation
for which he receives compensation of $15,000 in the aggregate, none of
such compensation shall be exempt from United States tax even though
such individual is present in the United States during such year for a
period or periods not exceeding a total of 183 days, since the aggregate
compensation received is in excess of $10,000.
(b) Definitions. For purposes of this section, the term
``compensation for labor or personal services'' shall include, but shall
not be limited to, the compensation, profits, emoluments, or other
remuneration of public entertainers, such as, stage, motion picture,
television, or radio artists, musicians, and athletes. For the
allocation or segregation as between sources within, and sources
without, the United States in the case of compensation for labor or
personal services, see sections 861 through 864, Internal Revenue Code
of 1954, and the regulations thereunder.
(c) Exception. The provisions of this section have no application to
the income to which Article XI(1) of the convention relates.
Sec. 509.113 Government wages, salaries, and pensions.
(a) General. Under Article XI of the convention any wage, salary, or
similar compensation, or any pension, paid by Switzerland or any agency
or instrumentality thereof, or by any political subdivisions or other
public authorities of Switzerland, to any alien individual (whether or
not a resident of the United States) or to any individual who occupies
the dual status of a citizen of the United States and a citizen of
Switzerland shall not be included in gross income and shall be exempt
from United States tax, even though at some time during the taxable year
such individual has engaged in trade or business in the United States
through a permanent establishment situated therein.
(b) Definition. As used in this section, the term ``pensions'' means
periodic payments made in consideration for services rendered or by way
of compensation for injuries received. Under Article XV(2) of the
convention the exclusion from gross income, and exemption from United
States tax, provided by this section shall not be denied despite the
provisions of Article XV. See Sec. 509.118.
(c) Cross reference. For the taxation generally of compensation of
alien employees of foreign governments and the consequences of executing
and filing the waiver provided for in section 247(b) of the Immigration
and Nationality Act, see section 893 of the Internal Revenue Code of
1954 and the regulations thereunder.
Sec. 509.114 Private pensions and life annuities.
(a) General. Private pensions and life annuities derived from
sources within the United States and paid to a nonresident alien
individual who is a resident of Switzerland shall not be included in
gross income and shall be exempt from United States tax, in accordance
with Article XI of the convention, even though at some time during
[[Page 46]]
the taxable year such individual has engaged in trade or business in the
United States through a permanent establishment situated therein.
(b) Definitions. As used in this section, the term ``pensions''
means periodic payments made in consideration for services rendered or
by way of compensation for injuries received; and the term ``life
annuities'' means a stated sum payable periodically at stated times
during life, or during a specified number of years, under an obligation
to make the payments in return for adequate and full consideration in
money or money's worth.
Sec. 509.115 Visiting professors or teachers.
(a) General. Pursuant to Article XII of the convention, a professor
or teacher, a nonresident alien who is a resident of Switzerland, who
temporarily visits the United States for the purpose of teaching for a
period not exceeding two years at any university, college, school, or
other educational institution situated within the United States shall,
for a period not exceeding two years from the date of his initial
arrival in the United States, be exempt from United States tax with
respect to his remuneration earned in taxable years beginning on or
after January 1, 1951, for such teaching during such period not in
excess of two years.
(b) More than two years. The exemption granted by Article XII is
applicable to remuneration earned during such part of the individual's
visit as does not exceed two years from the date of arrival even though
the total period of his presence in the United States may extend beyond
two years, provided that during such entire period he may be considered
to be temporarily visiting the United States.
(c) Residence. Such exemption shall not apply to the remuneration of
an alien who is a resident of the United States or who is not a resident
of Switzerland.
(d) Nonresidence presumed. An individual who otherwise qualifies for
the exemption from United States tax granted by Article XII shall, for a
period of not more than two years immediately succeeding the date of his
arrival within the United States for the purpose of such teaching, be
deemed to have the tax status of a nonresident alien in the absence of
proof of his intention to remain indefinitely in the United States. See
section 871 of the Internal Revenue Code of 1954 and the regulations
thereunder.
Sec. 509.116 Students or apprentices.
(a) General. Under Article XIII of the convention, a student or
apprentice, a nonresident alien who is a resident of Switzerland, who
temporarily visits the United States exclusively for the purposes of
study or for acquiring business or technical experience shall not
include in gross income, and shall be exempt from United States tax with
respect to, amounts derived by him in taxable years beginning on or
after January 1, 1951, and received during such years from without the
United States as remittances for the purposes of his maintenance or
studies.
(b) Residence. The exemption shall not apply to remittances received
by an alien who is a resident of the United States or who is not a
resident of Switzerland.
Sec. 509.117 Dividends and interest paid by a foreign corporation.
(a) General--(1) Dividends. A dividend paid by a foreign corporation
constitutes, in whole or in part, income from sources within the United
States and is subject to tax by the United States when received by a
nonresident alien individual or other foreign corporation, if 50 percent
or more of the gross income of the paying corporation for the statutory
period was derived from sources within the United States. See section
861(a)(2)(B), section 872(a), and section 882(b), Internal Revenue Code
of 1954; and the regulations thereunder.
(2) Interest. Interest on bonds, notes, and other interest-bearing
obligations of resident foreign corporations constitutes, in its
entirety, income from sources within the United States and is subject to
tax by the United States when received by a nonresident alien individual
or other foreign corporation, if 20 percent or more of the gross income
of the paying corporation for the statutory period was derived from
sources within the United States. See
[[Page 47]]
section 861(a)(1)(B), section 872(a), and section 882(b), Internal
Revenue Code of 1954; and the regulations thereunder.
(b) Exemption from United States tax. Notwithstanding the provisions
of paragraph (a) of this section, Article XIV(1) of the convention
provides that dividends and interest paid by any foreign corporation and
derived by a nonresident alien who is a resident of Switzerland, or by a
Swiss corporation, shall not be included in gross income and shall be
exempt from United States tax if such alien or corporation at no time
during the taxable year in which such items of income are derived has a
permanent establishment in the United States. The exemption so provided
shall apply even though the corporation paying the dividends or interest
is a resident foreign corporation at the time of payment and without
regard to the percentage of its gross income from sources within the
United States.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 509.117 was amended by removing and reserving paragaph (a),
effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the
effective date was delayed until Jan. 1, 2000.
Sec. 509.118 Credit against United States tax for Swiss tax.
(a) General--(1) Taxable as though no convention. Notwithstanding
any other provision of the convention the United States, in determining
the United States tax of a citizen or resident of the United States, or
of a domestic corporation, may, under Article XV(1)(a) of the
convention, include in the basis upon which such tax is imposed all
items of income taxable under the revenue laws of the United States, as
though the convention had not come into effect. For example, despite the
exemption from United States tax granted by Article VIII of the
convention with respect to a copyright royalty derived from sources
within the United States by a resident of Switzerland, such royalty
shall be included in gross income and is subject to United States tax
when so derived by a resident of Switzerland who is a citizen of the
United States, even though such resident has no permanent establishment
in the United States.
(2) Exception. Notwithstanding the provisions of subparagraph (1) of
this paragraph, the exclusion from gross income, and exemption from
United States tax, granted by Article XI(1) of the convention with
respect to wages, salaries, and similar compensation, and pensions, paid
by Switzerland or any agency or instrumentality thereof, or by any
political subdivisions or other public authorities of Switzerland, shall
not be denied. See Article XV(2) of the convention.
(b) Application of credit--(1) General. For the purpose of
mitigating double taxation, Article XV(1)(a) of the convention provides
that a citizen or resident of the United States, or a domestic
corporation, deriving income from sources within Switzerland shall be
allowed a credit against the United States tax for the amount of Swiss
tax paid or accrued during the taxable year. This credit shall be made
in accordance with the provisions of section 131 of the Internal Revenue
Code of 1939 as in effect on September 27, 1951, but subject to the
provisions of Article XVIII(2) of the convention.
(2) Similar credit requirement. (i) Article XV(1)(a) further
provides that, by virtue of the provisions of Article XV(1)(b) of the
convention, relating to the exclusion from basis for computing the Swiss
tax, Switzerland satisfies the similar credit requirement set forth in
section 901(b)(3), Internal Revenue Code of 1954, relating to alien
residents of the United States, etc.
(ii) This provision of Article XV(1)(a) shall be taken to mean that,
solely by reason of the exclusion granted by it under Article XV(1)(b)
and without reference to concessions otherwise made by such country,
Switzerland satisfies the similar credit requirement only with respect
to taxes paid to Switzerland, and not with respect to taxes paid to
another foreign country. Nothing in this subdivision shall be construed,
however, to prevent Switzerland from otherwise satisfying the similar
credit requirement, in accordance with section 901 of the Internal
Revenue Code of 1954 and the regulations thereunder, with respect to
taxes paid to another foreign country. Thus, if pursuant to a convention
between Switzerland and another foreign country, Switzerland
[[Page 48]]
were to exempt from its income taxes the income received from sources
within such other foreign country by a United States citizen residing in
Switzerland, then Switzerland would, in accordance with such regulations
under section 901, satisfy the similar credit requirement of section
901(b)(3) with respect to income taxes paid to such other country by a
Swiss citizen residing in the United States.
Sec. 509.119 Exchange of information.
(a) General. (1) By Article XVI of the convention the United States
and Switzerland adopt the principle of exchange of such information as
is necessary for carrying out the provisions of the convention,
preventing fraud, or detecting practices which are aimed at the
reduction of the revenues of either country, but not including
information which would be contrary to public policy or which would
disclose any trade, business, industrial, or professional secret or any
trade process.
(2) The information and correspondence relative to exchange of
information may be transmitted directly by the Commissioner to the
Director of the Federal Tax Administration.
(b) Return of information by withholding agents. (1) To facilitate
compliance with Article XVI of the convention, every United States
withholding agent shall make and file in duplicate with the District
Director of Internal Revenue, Baltimore 2, Maryland, an information
return on Form 1042 Supplement, with respect to persons having addresses
in Switzerland, which shall be filed for the calendar year 1955 and
subsequent calendar years. This return shall be filed simultaneously
with Form 1042.
(2) There shall be reported on such Form 1042 Supplement all items
of fixed or determinable annual or periodical income (and amounts
described in section 402(a)(2), section 631(b) and (c), and section 1235
of the Internal Revenue Code of 1954, which are considered to be gains
from the sale or exchange of capital assets) derived from sources within
the United States and paid to nonresident aliens (including nonresident
alien individuals, fiduciaries, and partnerships) and to nonresident
foreign corporations, whose addresses at the time of payment were in
Switzerland, including such items of income upon which, in accordance
with the withholding regulations under the convention, no withholding of
United States tax is required; except that any of such items which
constitute interest in respect of which Form 1001-S or substitute Form
1001-S has been filed in duplicate with the withholding agent is not
required to be reported on such Form 1042 Supplement.
(c) Information to be furnished in ordinary course. In compliance
with the provisions of Article XVI of the convention the Commissioner
will transmit to the Director of the Federal Tax Administration, as soon
as practicable after the close of the calendar year 1955 and of each
subsequent calendar year during which the convention is in effect, the
following information relating to such preceding calendar year:
(1) The duplicate copy of each available Form 1042 Supplement filed
pursuant to paragraph (b) of this section; and
(2) The duplicate copy of each available ownership certificate, Form
1001-S, and substitute Form 1001-S, filed pursuant to the withholding
regulations under the convention, in connection with coupon bond
interest.
(d) Information in specific cases. Under the provisions and
limitations of Article XVI of the convention and upon request of the
Director of the Federal Tax Administration, the Commissioner shall
furnish to the Director information available to, or obtainable by, the
Commissioner relative to the tax liability of any person under the
revenue laws of Switzerland in any case in which such information is
necessary for carrying out the provisions of the convention or for the
prevention of fraud or the like in relation to the taxes which are the
subject of the convention.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 509.119 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 509.120 Double taxation claims.
(a) General. Under Article XVII of the convention, where the
taxpayer shows
[[Page 49]]
proof that the action of the tax authorities of the United States or
Switzerland has resulted, or will result, in double taxation contrary to
the provisions of the convention, he is entitled to present the facts to
the country of which he is a citizen; or, if he is not a citizen of
either country, to the country of which he is a resident; or, if the
taxpayer is a corporation or other entity, to the country in which it is
created or organized. The article provides that, should the taxpayer's
claim be deemed worthy of consideration, the competent authority of the
country to which the facts are presented shall undertake to come to an
agreement with the competent authority of the other country with a view
to equitable avoidance of the double taxation in question.
(b) Manner of filing claim. Such a claim on behalf of a United
States citizen, corporation, or other entity, or on behalf of a resident
of the United States who is not a Swiss citizen, shall be filed with the
Commissioner. The claim shall be set up in the form of a letter
addressed to ``The Commissioner of Internal Revenue, Washington, D.C.''
and shall show fully all facts and laws on the basis of which the
claimant alleges that such double taxation has resulted or will result.
If the Commissioner determines that there is an appropriate basis for
the claim under the convention, he shall take up the matter with the
Director of the Federal Tax Administration with a view to arranging an
agreement of the character contemplated by Article XVII.
Sec. 509.121 Beneficiaries of an estate or trust.
(a) Qualified beneficiary. If he otherwise satisfies the
requirements of the respective articles concerned, a nonresident alien
who is a resident of Switzerland and who is a beneficiary of an estate
or trust shall be entitled to the exemption from, or reduction in the
rate of, United States tax granted by Articles VI, VII, VIII, and XIV of
the convention with respect to dividends, interest, and royalties and
other like amounts, to the extent that (1) any amount paid, credited, or
required to be distributed by such estate or trust to such beneficiary
is deemed to consist of such items and (2) such items would, without
regard to the convention, be includible in his gross income.
(b) Amounts otherwise includible in gross income of beneficiary. For
the determination of amounts which, without regard to the convention,
are includible in the gross income of the beneficiary, see subchapter J
of chapter 1 of the Internal Revenue Code of 1954, and the regulations
thereunder.
Sec. 509.122 Swiss partnerships.
(a) General. Whether an individual, corporation, or other entity, a
member of a partnership created or organized under Swiss laws, is
subject to United States tax upon such person's distributive share of
the income of such partnership depends upon both the status of the
partnership and the status of such member.
(b) Citizen partner. A citizen or resident of the United States, or
a domestic corporation, is subject to United States tax upon such
person's distributive share of the income of such partnership as though
the convention had not come into effect, but subject to the provisions
of Sec. 509.118; even though other members, by reason of benefits
granted by the convention, are not subject to United States tax upon
their distributive share of such income.
(c) Noncitizen partner. In any case in which income is derived from
sources within the United States by a partnership created or organized
under Swiss laws, any member of such partnership who has a permanent
establishment in the United States or who is either a nonresident alien
not a resident of Switzerland or is a foreign corporation which is not
Swiss is not entitled, with respect to such member's distributive share
of such income, to any benefit granted by the convention solely to
nonresident aliens residing in Switzerland, or to Swiss corporations or
other entities, having no permanent establishment in the United States.
Conversely, any member of such partnership who individually complies
with the requirements for obtaining any such benefit will be entitled
thereto with respect to such member's distributive share of such income.
A member of a Swiss partnership which has a permanent establishment in
the United
[[Page 50]]
States shall likewise be considered to have a permanent establishment in
the United States.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 509.122 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
PARTS 510-512 [RESERVED]
PART 513--IRELAND--Table of Contents
Subpart--Withholding of Tax
Sec.
513.1 Introductory.
513.2 Dividends.
513.3 Interest.
513.4 Patent and copyright royalties and film rentals.
513.5 Natural resource royalties and real property rentals.
513.6 Pensions and life annuities.
513.7 Release of excess tax withheld at source.
513.8 Addressee not actual owner.
513.9 Information to be furnished in ordinary course.
513.10 Beneficiaries of a domestic estate or trust.
513.11 Refund of income tax withheld during 1951.
Authority: 26 U.S.C. 62.
Source: Treasury Decision 5897, 17 FR 3633, Apr. 24, 1952, unless
otherise noted. Redesignated at 25 FR 14022, Dec. 31, 1960.
Subpart--Withholding of Tax
Sec. 513.1 Introductory.
(a) The income tax convention between the United States and the
Republic of Ireland, signed September 13, 1949, proclaimed by the
President of the United States on December 24, 1951, and effective (as
respects the United States tax) for taxable years beginning on or after
January 1, 1951, referred to in this subpart as the convention, provides
in part as follows:
Article I
(1) The taxes which are the subject of the present Convention are:
(a) In the United States of America: The Federal income taxes,
including surtaxes (hereinafter referred to as United States tax).
(b) In Ireland: The income tax (including surtax) and the
corporation profits tax (hereinafter referred to as Irish tax).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed by either Contracting Party
subsequently to the date of signature of the present Convention.
Article II
(1) In the present Convention, unless the context otherwise
requires--
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense means the States, the Territories
of Alaska and of Hawaii, and the District of Columbia.
(b) The term ``Ireland'' means the Republic of Ireland and the term
``Irish'' has a corresponding meaning.
(c) The terms ``territory of one of the Contracting Parties'' and
``territory of the other Contracting Party'' mean the United States or
Ireland as the context requires.
(d) The term ``United States corporation'' means a corporation,
association or other like entity created or organized in or under the
laws of the United States.
(e) The term ``Irish corporation'' means any kind of juridical
person created under the laws of Ireland.
(f) The terms ``corporation of one Contracting Party'' and
``corporation of the other Contracting Party'' mean a United States
corporation or an Irish corporation as the context requires.
(g) The term ``resident of Ireland'' means any person (other than a
citizen of the United States or a United States corporation) who is
resident in Ireland for the purposes of Irish tax and not resident in
the United States for the purposes of United States tax. A corporation
is to be regarded as resident in Ireland if its business is managed and
controlled in Ireland.
(h) The term ``resident of the United States'' means any individual
who is resident in the United States for the purposes of United States
tax and not resident in Ireland for the purposes of Irish tax, and any
United States corporation and any partnership created or organized in or
under the laws of the United States, being a corporation or partnership
which is not resident in Ireland for the purposes of Irish tax.
(i) The term ``Irish enterprise'' means an industrial or commercial
enterprise or undertaking carried on by a resident of Ireland.
(j) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on by a resident of the
United States.
(k) The terms ``enterprise of one of the Contracting Parties'' and
``enterprise of the
[[Page 51]]
other Contracting Party'' mean a United States enterprise or an Irish
enterprise, as the context requires.
(l) The term ``permanent establishment'' when used with respect to
an enterprise of one of the Contracting Parties means a branch,
management, factory or other fixed place of business, but does not
include an agency unless the agent has, and habitually exercises, a
general authority to negotiate and conclude contracts on behalf of such
enterprise or has a stock of merchandise from which he regularly fills
orders on its behalf. An enterprise of one of the Contracting Parties
shall not be deemed to have a permanent establishment in the territory
of the other Contracting Party merely because it carries on business
dealings in the territory of such other Contracting Party through a bona
fide commission agent or broker acting in the ordinary course of his
business as such. The fact that an enterprise of one of the Contracting
Parties maintains in the territory of the other Contracting Party a
fixed place of business exclusively for the purchase of goods or
merchandise shall not of itself constitute such fixed place of business
a permanent establishment of such enterprise. The fact that a
corporation of one Contracting Party has a subsidiary corporation which
is a corporation of the other Contracting Party or which is engaged in
trade or business in the territory of such other Contracting Party
(whether through a permanent establishment or otherwise) shall not of
itself constitute that subsidiary corporation a permanent establishment
of its parent corporation.
(2) For the purposes of Article VI, VII, VIII, IX and XIV a resident
of Ireland shall not be deemed to be engaged in trade or business in the
United States in any taxable year unless such resident has a permanent
establishment situated therein in such taxable year. The same principle
shall be applied, mutatis mutandis, by Ireland in the case of a resident
of the United States.
(3) In the application of the provisions of the present Convention
by one of the Contracting Parties any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which it has
under the laws of that Contracting Party relating to the taxes which are
the subject of the present Convention.
* * * * *
Article VI
(1) The rate of United States tax on dividends derived from a United
States corporation by a resident of Ireland who is subject to Irish tax
on such dividends and not engaged in trade or business in the United
States shall not exceed 15 per cent: provided that such rate of tax
shall not exceed five per cent if such resident is a corporation
controlling, directly or indirectly, at least 95 per cent of the entire
voting power in the corporation paying the dividend, and not more than
25 per cent of the gross income of such paying corporation is derived
from interest and dividends, other than interest and dividends received
from its own subsidiary corporations. Such reduction of the rate to five
per cent shall not apply if the relationship of the two corporations has
been arranged or is maintained primarily with the intention of securing
such reduced rate.
(2) Dividends derived from sources within Ireland by an individual
who is (a) a resident of the United States, (b) subject to United States
tax with respect to such dividends, and (c) not engaged in trade or
business in Ireland, shall be exempt from Irish surtax.
(3) Either of the Contracting Parties may terminate this Article by
giving written notice of termination to the other Contracting Party,
through diplomatic channels, on or before the thirtieth day of June in
any calendar year after the calendar year in which the exchange of the
instruments of ratification takes place and in such event paragraph (1)
hereof shall cease to be effective as to United States tax on and after
the first day of January, and paragraph (2) hereof shall cease to be
effective as to Irish tax on and after the 6th day of April, in the
calendar year next following that in which such notice is given.
Article VII
(1) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) derived from sources within the United
States by a resident of Ireland who is subject to Irish tax on such
interest and not engaged in trade or business in the United States,
shall be exempt from United States tax; but such exemption shall not
apply to such interest paid by a United States corporation to a
corporation resident in Ireland controlling, directly or indirectly,
more than 50 per cent of the entire voting power in the paying
corporation.
(2) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) derived from sources within Ireland by a
resident of the United States who is subject to United States tax on
such interest and not engaged in trade or business in Ireland, shall be
exempt from Irish tax; but such exemption shall not apply to such
interest paid by a corporation resident in Ireland to a United States
corporation controlling, directly or indirectly, more than 50 per cent
of the entire voting power in the paying corporation.
Article VIII
(1) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs,
[[Page 52]]
secret processes and formulas, trade-marks, and other like property, and
derived from sources within the United States by a resident of Ireland
who is subject to Irish tax on such royalties or other amounts and not
engaged in trade or business in the United States, shall be exempt from
United States tax.
(2) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs, secret
processes and formulas, trademarks, and other like property, and derived
from sources within Ireland by a resident of the United States who is
subject to United States tax on such royalties or other amounts and not
engaged in trade or business in Ireland shall be exempt from Irish tax.
(3) For the purposes of this Article, the term ``royalties'' shall
be deemed to include rentals in respect of motion picture films.
Article IX
(1) The rate of United States tax on royalties in respect of the
operation of mines or quarries or of other extraction of natural
resources, and on rentals from real property or from an interest in such
property, derived from sources within the United States by a resident of
Ireland who is subject to Irish tax with respect to such royalties or
rentals and not engaged in trade or business in the United States, shall
not exceed 15 per cent; provided that any such resident may elect for
any taxable year to be subject to United States tax as if such resident
were engaged in trade or business in the United States.
(2) Royalties in respect of the operation of mines or quarries or of
other extraction of natural resources, and rentals from real property or
from an interest in such property, derived from sources within Ireland
by an individual who is (a) a resident of the United States, (b) subject
to United States tax with respect to such royalties and rentals, and (c)
not engaged in trade or business in Ireland, shall be exempt from Irish
surtax.
Article Xx
(1) Any salary, wage, similar remuneration, or pension, paid by the
Government of the United States to an individual (other than a citizen
of Ireland who is not also a citizen of the United States) in respect of
services rendered to the United States in the discharge of governmental
functions, shall be exempt from Irish tax.
(2) Any salary, wage, similar remuneration, or pension, paid by the
Government of Ireland to an individual (other than a citizen of the
United States who is not also a citizen of Ireland) in respect of
services rendered to Ireland in the discharge of governmental functions,
shall be exempt from United States tax.
(3) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or business
carried on by either of the Contracting Parties for purposes of profit.
* * * * *
Article XII
(1) Any pension (other than a pension to which Article X applies),
and any life annuity, derived from sources within the United States by
an individual who is a resident of Ireland shall be exempt from United
States tax.
(2) Any pension (other than a pension to which Article X applies),
and any life annuity, derived from sources within Ireland by an
individual who is a resident of the United States shall be exempt from
Irish tax.
(3) The term ``life annuity'' means a stated sum payable
periodically at stated times, during life or during a specified or
ascertainable period of time, under an obligation to make the payments
in consideration of money paid.
* * * * *
Article XV
(1) Dividends and interest paid, on or after the first day of
January in the calendar year in which the exchange of instruments or
ratification takes place, by an Irish corporation shall be exempt from
United States tax except where the recipient is a citizen of or a
resident in the United States or a United States corporation.
(2) Dividends and interest paid, on or after the 6th day of April of
the first year of assessment specified in Article XXII(2)(b), (i) of
this Convention, by a United States corporation shall be exempt from
Irish tax except where the recipient is a resident of Ireland.
* * * * *
Article XX
(1) The taxation authorities of the Contracting Parties shall
exchange such information (being information available under the
respective taxation laws of the Contracting Parties) as is necessary for
carrying out the provisions of the present Convention or for the
prevention of fraud or the administration of statutory provisions
against legal avoidance in relation to the taxes which are the subject
of the present Convention. Any information so exchanged shall be treated
as secret and shall not be disclosed to any person other than those
concerned with the assessment and collection of the taxes which are the
subject of the present Convention. No information shall be exchanged
which would disclose any trade secret or trade process.
[[Page 53]]
(2) As used in this Article, the term ``taxation authorities''
means, in the case of the United States, the Commissioner of Internal
Revenue or his authorized representative and, in the case of Ireland,
the Revenue Commissioners or their authorized representative.
* * * * *
Article XXII
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Washington, District of Columbia, as
soon as possible.
(2) Upon exchange of ratifications, the present Convention shall
have effect:
(a) as respects United States tax, for the taxable years beginning
on or after the first day of January in the calendar year in which the
exchange of instruments of ratification takes place;
(b)(i) as respects Irish income tax, for the year of assessment
beginning on the 6th day of April in the calendar year in which the
exchange of instruments of ratification takes place and subsequent
years; (ii) as respects Irish surtax, for the year of assessment
beginning on the 6th day of April immediately preceding the calendar
year in which the exchange of instruments of ratification takes place,
and subsequent years; and (iii) as respects Irish corporation profits
tax, for any chargeable accounting period beginning on or after the
first day of April in the calendar year in which the exchange of
instruments of ratification takes place, and for the unexpired portion
of any chargeable accounting period current at that date.
Article XXIII
(1) The present Convention shall continue in effect indefinitely but
either of the Contracting Parties may, on or before the 30th day of June
in any calendar year following the calendar year in which the exchange
of instruments of ratification takes place, give to the other
Contracting Party, through diplomatic channels, notice of termination
and, in such event, the present Convention shall cease to be effective:
(a) as respects United States tax, for the taxable years beginning
on or after the first day of January in the calendar year next following
that in which such notice is given;
(b)(i) as respects Irish income tax, for any year of assessment
beginning on or after the 6th day of April in the calendar year next
following that in which such notice is given; (ii) as respects Irish
surtax, for any year of assessment beginning on or after the 6th day of
April in the calendar year in which such notice is given; and (iii) as
respects Irish corporation profits tax, for any chargeable accounting
period beginning on or after the first day of April in the calendar year
next following that in which such notice is given and for the unexpired
portion of any chargeable accounting period current at that date.
(2) The termination of the present Convention or of any Article
thereof shall not have the effect of reviving any treaty or arrangement
abrogated by the present Convention or by treaties previously concluded
between the Contracting Parties.
(b) As used in this subpart, unless the context otherwise requires,
the terms defined in the above articles of the convention shall have the
meanings so assigned to them.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 513.1 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 513.2 Dividends.
(a) General. (1) Under Article VI of the convention the rate of tax
imposed with respect to dividends by section 211(a) of the Internal
Revenue Code (relating to nonresident alien individuals not engaged in
trade or business within the United States) and by section 231(a) of the
Internal Revenue Code (relating to foreign corporations not engaged in
trade or business within the United States) is reduced to 15 percent in
the case of dividends derived from a United States corporation and
received in taxable years beginning on or after January 1, 1951, by a
nonresident alien (including a nonresident alien individual, fiduciary,
and partnership) who is resident in Ireland for the purposes of Irish
tax, or by a foreign corporation (whether or not created or organized in
or under the laws of Ireland) whose business is managed and controlled
in Ireland, if such alien or corporation is subject to Irish tax on such
dividends and at no time during the taxable year had a permanent
establishment within the United States. As to what is a United States
corporation, see Article II (1)(d) of the convention.
(2) Thus, if a nonresident alien who is resident in Ireland for the
purposes of Irish tax performs personal services within the United
States during the taxable year, has at no time during such year a
permanent establishment within the United States, and is subject to
Irish tax on a dividend derived by him in such year from a United States
corporation, he is entitled to
[[Page 54]]
the reduced rate of tax with respect to such dividend, as provided in
Article VI of the convention, even though under the provisions of
section 211(b) of the Internal Revenue Code he has engaged in trade or
business within the United States during such year by reason of his
having rendered personal services therein.
(3) The fact that the payee of the dividend is not required to pay
Irish tax on such dividend because of the application of reliefs or
exemptions under Irish revenue laws does not prevent the application of
the reduction in rate of United States tax with respect to such
dividend. If the dividend would have been subject to Irish tax had the
payee thereof derived an income large enough to require payment of tax
then liability to Irish tax exists for the purpose of the reduction in
rate of United States tax. As to what constitutes a permanent
establishment, see Article II (1)(l) of the convention.
(4) In the case of dividends paid on or after January 1, 1951, by an
Irish corporation, as defined in Article II (1)(e) of the convention, no
withholding of United States tax is required. See Article XV (1) of the
convention.
(b) Dividends paid by a United States subsidiary corporation. (1)
Under the proviso of Article VI (1) of the convention dividends derived
from a domestic corporation by a foreign corporation whose business is
managed and controlled in Ireland and which controls, directly or
indirectly, at the time the dividends is paid 95 percent or more of the
entire voting power in such domestic corporation are, when received in
taxable years beginning on or after January 1, 1951, subject to tax at
the rate of only 5 percent, if (i) not more than 25 percent of the gross
income of such paying corporation for the three-year period immediately
preceding the taxable year in which the dividend is paid consists of
dividends and interest (other than dividends and interest paid to such
domestic corporation by its own subsidiary corporations, if any), (ii)
the relationship between such domestic corporation and such foreign
corporation has not been arranged or maintained primarily with the
intention of securing such reduced rate of 5 percent, (iii) such foreign
corporation is subject to Irish tax on such dividends, and (iv) such
foreign corporation at no time during the taxable year had a permanent
establishment within the United States.
(2) Any domestic corporation which claims or contemplates claiming
that dividends paid or to be paid by it on or after January 1, 1951, are
subject only to the 5 percent rate shall file the following information
with the Commissioner of Internal Revenue as soon as practicable: (i)
The date and place of its organization; (ii) the location of the
management and control of the foreign corporation to which the dividends
are paid or to be paid; (iii) the number of outstanding shares of stock
of the domestic corporation having voting power and the voting power
thereof; (iv) the person or persons beneficially owning such stock of
the domestic corporation and their relationship to such foreign
corporation; (v) the amount of gross income by years of the domestic
corporation for the three-year period immediately preceding the taxable
year in which the dividend is paid; (vi) the amount of interest and
dividends by years included in the gross income of the domestic
corporation, and the amount of interest and dividends by years received
by such corporation from its subsidiary corporations, if any; and (vii)
the relationship between the domestic corporation and the foreign
corporation to which it pays the dividend.
(3) As soon as practicable after such information is filed, the
Commissioner of Internal Revenue will determine whether the dividends
concerned fall within the scope of the proviso of Article VI(1) of the
convention and may authorize the release of excess tax withheld with
respect to dividends which come within such proviso. In any case in
which the Commissioner of Internal Revenue has notified the domestic
corporation that the dividends fall within the scope of such proviso the
reduced withholding rate of 5 percent will apply to any dividends
subsequently paid by such corporation to the foreign corporation, unless
the stock ownership of the domestic corporation, or the character of its
income, or the place of management and control of the corporation to
which the dividend is paid
[[Page 55]]
materially changes; or unless the Commissioner of Internal Revenue
determines that the relationship between the two corporations is being
maintained primarily with the intention of securing the reduced rate of
tax; and, if such change in stock ownership, character of income, or
place of management and control occurs, the domestic corporation shall
promptly notify the Commissioner of Internal Revenue of the then
existing facts with respect thereto. The continued application of the
reduced withholding rate is also dependent upon the continued
fulfillment of conditions in subparagraph (1) (iii) and (iv) of this
paragraph.
(c) Effect of address in Ireland on withholding in case of
dividends. For the purpose of withholding of the tax in the case of
dividends every nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) whose address is in Ireland
shall be deemed by United States withholding agents to be a nonresident
alien who is (1) resident in Ireland for the purposes of Irish tax, (2)
subject to Irish tax on such dividends, and (3) without a permanent
establishment in the United States; and every foreign corporation whose
address is in Ireland shall be deemed by such withholding agents to be a
foreign corporation whose business is managed and controlled in Ireland
and which is (i) subject to Irish tax on such dividends and (ii) without
a permanent establishment in the United States.
(d) Rate of withholding. (1) Withholding at source in the case of
dividends derived from a United States corporation and paid on or after
January 1, 1952, to nonresident aliens (including a nonresident alien
individual, fiduciary, and partnership) and to foreign corporations,
whose addresses are in Ireland, shall be at the rate of 15 percent in
every case except that in which, prior to the date of payment of such
dividends, the Commissioner of Internal Revenue has notified the
withholding agent that (i) such dividends fall within the scope of the
proviso of Article VI(1) of the convention or (ii) the reduced rate of
tax shall not apply.
(2) The preceding provisions respecting the application of the
reduced withholding rate in the case of dividends paid to nonresident
aliens and foreign corporations with addresses in Ireland are based upon
the assumption that the payee of the dividend is the actual owner of the
capital stock from which the dividend is derived and consequently is the
person liable to United States tax upon such dividend. As to action by
the recipient who is not the owner of the dividend, see Sec. 513.8.
(3) The rate at which United States tax has been withheld from any
dividend paid on and after thirty days from the date on which this
subpart is filed with the Division of the Federal Register to any person
whose address is in Ireland at the time the dividend is paid shall be
shown either in writing or by appropriate stamp on the check, draft, or
other evidence of payment, or on an accompanying statement.
Effectve Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 513.2 was revised, effective Jan. 1, 1999. At 63 FR 2723, Jan. 16,
1998, Sec. 513.2 was corrected in the fifth line by changing the word
``does'' to read ``does not'' effective Jan. 1, 1999. By T.D. 8804, 63
FR 72183, Dec. 31, 1998, the effective date was delayed until Jan. 1,
2000. For the convenience of the user, the revised text is set forth as
follows:
Sec. 513.2 Dividends.
The fact that the payee of the dividend is not required to pay Irish
tax on such dividend because of the application of reliefs or exemptions
under Irish revenue laws does not prevent the application of the
reduction in rate of United States tax with respect to such dividend. If
the dividend would have been subject to Irish tax had the payee thereof
derived an income large enough to require payment of tax then liability
to Irish tax exists for the purpose of the reduction in rate of United
States tax. As to what constitutes a permanent establishment, see
Article II(1)(i) of the convention.
[62 FR 53497, Oct. 14, 1997; 63 FR 2723, Jan. 16, 1998]
Sec. 513.3 Interest.
(a) General. (1) Interest (other than interest falling within the
scope of paragraph (c) of this section) on bonds, securities, notes,
debentures, or any other form of indebtedness, including interest on
obligations of the United States, obligations of instrumentalities of
the United States, and mortgages and bonds secured by real property,
derived from sources within the
[[Page 56]]
United States and received in taxable years beginning on or after
January 1, 1951, by a nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) who is resident in Ireland for
the purposes of Irish tax, or by a foreign corporation (whether or not
created or organized in or under the laws of Ireland) whose business is
managed and controlled in Ireland, is exempt from United States tax
under the provisions of Article VII(1) of the convention if such alien
or corporation is subject to Irish tax on such interest and at no time
during the taxable year had a permanent establishment within the United
States. Such interest is, therefore, not subject to the withholding
provisions of the Internal Revenue Code. As to what constitutes a
permanent establishment, see Article II(1) of the convention.
(2) The provisions of Sec. 513.2(a) relating to the degree of
liability to Irish tax in the case of dividends are equally applicable
with respect to the income falling within the scope of this section.
(b) Application of exemption from withholding. (1) To obviate
withholding at the source in the case of coupon bond interest the
nonresident alien resident in Ireland for the purpose of Irish tax, or
the foreign corporation whose business is managed and controlled in
Ireland, shall for each issue of bonds submit Form 1001-IR in duplicate
to the paying agent with each presentation of interest coupons. Such
form shall be signed by the owner of the interest, trustee, or agent and
shall show the name and address of the obligor, the name and address of
the owner of such interest, and the amount of such interest. Such form
shall contain a statement that the owner (i) is resident in Ireland for
the purposes of Irish tax, or is a foreign corporation whose business is
managed and controlled in Ireland, (ii) has no permanent establishment
in the United States, and (iii) is subject to Irish tax on such
interest.
(2) The exemption from United States tax contemplated by Article
VII(1) of the convention, insofar as it concerns coupon bond interest,
is applicable only to the owner of such interest. The person presenting
such coupon, or on whose behalf it is presented, shall for the purpose
of the exemption from tax be deemed to be the owner of the interest only
if he is, at the time the coupon is presented for payment, the owner of
the bond from which the coupon has been detached. If the person
presenting the coupon is not the owner of the bond, Form 1001, and not
Form 1001-IR, shall be executed.
(3) The original and duplicate ownership certificates, Form 1001-IR,
must be forwarded to the Commissioner of Internal Revenue by the
withholding agent with the quarterly return on Form 1012, as provided in
existing regulations with respect to Form 1001. See Sec. 29.143-7 of
Regulations 111 (26 CFR 1949 ed. Supps. 29.143-7 [and Sec. 39.143-7 of
Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)] Form 1001-
IR need not be listed on Form 1012.
(4) For general provisions pertaining to the use, without reference
to the provisions of the convention, of ownership certificate, Form
1001, by nonresident aliens and nonresident foreign corporations, see
Secs. 29.143-4 and 29.143-6 of Regulations 111 (26 CFR 1949 ed. Supps.
29.143-4 and 29.143-6) [and Secs. 39.143-4 and 39.143-6 of Regulations
118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)]
(5) To obviate withholding at the source in the case of interest,
other than interest payable by means of coupons, the nonresident alien
resident in Ireland for the purposes of Irish tax, or the foreign
corporation whose business is managed and controlled in Ireland, shall
notify the withholding agent by letter in duplicate that such income is
exempt from United States tax under the provisions of Article VII(1) of
the convention. The letter of notification shall be signed by the owner
of the interest, trustee, or agent and shall show the name and address
of the obligor and the name and address of the owner of such interest.
It shall also contain a statement that the owner (i) is resident in
Ireland for the purposes of Irish tax, or is a foreign corporation whose
business is managed and controlled in Ireland, (ii) has no permanent
establishment in the United States, and (iii) is subject to Irish tax on
such interest. This letter shall constitute authorization for the
payment of such interest without deduction of the tax at source.
[[Page 57]]
(6) The letter of notification in the case of interest, other than
interest payable by means of coupons, must be filed for each three-
calendar-year period, and the first such letter filed by the taxpayer
with any withholding agent shall be filed not later than 20 days
preceding the date of the first payment of interest in such period. If
the taxpayer files such letter with the withholding agent in the
calendar year 1952, or in any subsequent calendar year, no additional
letter need be filed prior to the end of the two calendar years
immediately following the calendar year in which such letter is so filed
unless the Commissioner of Internal Revenue notifies the withholding
agent that an additional letter must be filed by the taxpayer at any
earlier date. If, after filing a letter of notification, the taxpayer
ceases to be eligible for the benefit of the convention, he must
promptly notify the withholding agent by letter in duplicate. When any
change occurs in the ownership of the interest as recorded on the books
of the payer, the exemption from United States tax will no longer apply
unless a letter of notification is duly executed and filed with the
withholding agent by the new owner of record of such interest.
(7) Each letter of notification, or the duplicate thereof, must be
immediately forwarded by the withholding agent to the Commissioner of
Internal Revenue, Clearing Branch, Washington 25, D.C.
(8) In the case of interest paid on or after January 1, 1951, by an
Irish corporation, as defined in Article II(1)(e) of the convention, no
withholding of United States tax is required. See Article XV(1) of the
convention.
(c) Exemption not applicable to interest paid by subsidiary
corporation to its parent corporation. (1) Under the exception contained
in Article VII(1) of the convention any interest derived from sources
within the United States and paid by a domestic corporation to a foreign
corporation whose business is managed and controlled in Ireland is not
exempt from United States tax if such foreign corporation controls,
directly or indirectly, at the time the interest is paid more than 50
percent of the entire voting power of all classes of stock of such
domestic corporation. The exemption from United States tax provided by
Article VII(1) of the convention does not, therefore, apply to such
interest paid by such domestic corporation.
(2) In any case in which a foreign corporation whose business is
managed and controlled in Ireland anticipates the receipt of interest
from a domestic corporation and the relationship existing between the
foreign corporation and the domestic corporation is such as to render
uncertain whether, by reason of the exception contained in Article
VII(1) of the convention, the exemption will apply to such interest, the
foreign corporation shall not undertake to file any Form 1001-IR or
letter of notification prescribed by paragraph (b) of this section
unless it has, prior to such filing, applied for and received from the
Commissioner of Internal Revenue, Washington 25, D.C., a determination
that such foreign corporation does not control, directly or indirectly,
more than 50 percent of the entire voting power in the paying
corporation. The application to the Commissioner shall contain a full
statement of all the facts pertinent to a determination of the question.
(3) As soon as practicable after the application has been filed, the
Commissioner of Internal Revenue will determine whether the foreign
corporation has such control of the domestic corporation as to render
the exemption provided by Article VII(1) of the convention inapplicable
to interest paid by such domestic corporation to such foreign
corporation and shall notify the foreign corporation of his
determination. The foreign corporation shall forthwith file with the
domestic corporation a copy of the Commissioner's letter of
notification.
(4) If the Commissioner's determination is that the foreign
corporation does not control, directly or indirectly, more than 50
percent of the entire voting power of all classes of stock of the
domestic corporation, the foreign corporation may thereafter obviate
withholding at the source with respect to subsequent payments of such
interest by complying with the provisions of paragraph (b) of this
section, that is, by submitting Form 1001-IR in the case of coupon bond
interest, or the letter of
[[Page 58]]
notification for each three-calendar-year period in the case of interest
other than interest payable by means of coupons.
(5) A determination of the Commissioner that the foreign corporation
does not have such control of the domestic corporation as to render the
exemption provided by Article VII(1) of the convention inapplicable will
apply until such time as the stock ownership of the domestic corporation
has changed to the extent that interest to be received from the domestic
corporation by the foreign corporation is no longer exempt from United
States tax under Article VII(1) of the convention. If such change in
stock ownership occurs, the foreign corporation shall promptly notify
both the Commissioner of Internal Revenue and the domestic corporation
of the then existing facts with respect to such stock ownership.
(6) In any case in which a foreign corporation whose business is
managed and controlled in Ireland has received on or after January 1,
1952, interest from a domestic corporation and the relationship existing
between the foreign corporation and the domestic corporation was at the
time the interest was paid such as to render uncertain whether, by
reason of the exception contained in Article VII(1) of the convention,
such interest was exempt from United States tax, the foreign corporation
shall apply to the Commissioner of Internal Revenue for a similar
determination as to the degree of control at the time the interest was
paid. If the Commissioner's determination is that at such time the
degree of control was such as to permit the application of the exemption
provided by Article VII(1) of the convention, his letter of notification
may, subject to the provisions of Sec. 513.7(e), authorize the release
of excess tax withheld with respect to such exempt interest.
Effective Date Note: By T.D. 8734, 62 FR 53497, Oct. 14, 1997,
Sec. 513.3 was revised, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
For the convenience of the user, the revised text is set forth as
follows:
Sec. 513.3 Interest.
The provisions of Sec. 513.2 relating to the degree of liability to
Irish tax in the case of dividends are equally applicable with respect
to the income falling within the scope of this section.
[62 FR 53497, Oct. 14, 1997]
Sec. 513.4 Patent and copyright royalties and film rentals.
(a) Royalties and other amounts (including rentals for the use of,
or for the right to use, motion picture films) derived from sources
within the United States and received in taxable years beginning on or
after January 1, 1951, by a nonresident alien (including a nonresident
alien individual, fiduciary, and partnership) who is resident in Ireland
for the purposes of Irish tax, or by a foreign corporation (whether or
not created or organized in or under the laws of Ireland) whose business
is managed and controlled in Ireland, when paid as consideration for the
use of, or for the privilege of using, copyrights, patents, designs,
secret processes and formulae, trade-marks, and other like property, are
exempt from United States tax under the provisions of Article VIII(1)
and (3) of the convention if such alien or corporation is subject to
Irish tax on such income and at no time during the taxable year had a
permanent establishment within the United States. Such items of income
are, therefore, not subject to the withholding provisions of the
Internal Revenue Code. As to what constitutes a permanent establishment,
see Article II(1)(l) of the convention.
(b) The provisions of Sec. 513.2(a) relating to the degree of
liability to Irish tax in the case of dividends are equally applicable
with respect to the income falling within the scope of this section.
(c) To obviate withholding at the source in the case of such items
the nonresident alien resident in Ireland for the purposes of Irish tax,
or the foreign corporation whose business is managed and controlled in
Ireland, shall notify the withholding agent by letter in duplicate that
such income is exempt from United States tax under the provisions of
Article VIII of the convention. The provisions of Sec. 513.3(b) relating
to the execution, filing, and effective period of the letter of
notification prescribed therein with respect to interest are equally
applicable with
[[Page 59]]
respect to the income falling within the scope of this section.
(d) Each letter of notification, or the duplicate thereof, must be
immediately forwarded by the withholding agent to the Commissioner of
Internal Revenue, Clearing Branch, Washington 25, D.C.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 513.4 was revised, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
For the convenience of the user, the revised text is set forth as
follows:
Sec. 513.4 Patent and copyright royalties and film rentals.
The provisions of Sec. 513.2 relating to the degree of liability to
Irish tax in the case of dividends are equally applicable with respect
to the income falling within the scope of this section.
[62 FR 53498, Oct. 14, 1997]
Sec. 513.5 Natural resource royalties and real property rentals.
(a) Under Article IX of the convention the rate of tax imposed with
respect to natural resource royalties and real property rentals by
section 211(a) of the Internal Revenue Code (relating to nonresident
alien individuals not engaged in trade or business within the United
States) and by section 231(a) of the Internal Revenue Code (relating to
foreign corporations not engaged in trade or business within the United
States) is reduced to 15 percent in the case of royalties in respect of
the operation of mines or quarries or of other extraction of natural
resources, and in the case of rentals from real property or from an
interest in such property, derived from sources within the United States
and received in taxable years beginning on or after January 1, 1951, by
a nonresident alien (including a nonresident alien individual,
fiduciary, and partnership) who is resident in Ireland for the purposes
of Irish tax, or by a foreign corporation (whether or not created or
organized in or under the laws of Ireland) whose business is managed and
controlled in Ireland, if such alien or corporation is subject to Irish
tax on such income and at no time during the taxable year had a
permanent establishment within the United States. As to what constitutes
a permanent establishment, see Article II(1)(l) of the convention.
(b) The provisions of Sec. 513.2(a) relating to the degree of
liability to Irish tax in the case of dividends are equally applicable
with respect to the income falling within the scope of this section.
(c) To secure the reduced rate of tax at the source in the case of
such items the nonresident alien resident in Ireland for the purposes of
Irish tax, or the foreign corporation whose business is managed and
controlled in Ireland, shall notify the withholding agent by letter in
duplicate that the rate of United States tax with respect to such income
is reduced to 15 percent under the provisions of Article IX of the
convention. The provisions of Sec. 513.3(b) relating to the execution,
filing, and effective period of the letter of notification prescribed
therein with respect to interest are equally applicable with respect to
the income falling within the scope of this section.
(d) Each letter of notification, or the duplicate thereof, must be
immediately forwarded by the withholding agent to the Commissioner of
Internal Revenue, Clearing Branch, Washington 25, D.C.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 513.5 was revised, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
For the convenience of the user, the revised text is set forth as
follows:
Sec. 513.5 Natural resource royalties and real property rentals.
The provisions of Sec. 513.2 relating to the degree of liability to
Irsh tax in the case of dividends are equally applicable with respect to
the income falling within the scope of this section.
[62 FR 53498, Oct. 14, 1997]
Sec. 513.6 Pensions and life annuities.
(a) Pensions, other than pensions paid by the Government of the
United States to individuals in respect of services rendered thereto in
the discharge of governmental functions, and any life annuity, derived
from sources within the United States in taxable years beginning on or
after January 1, 1951, by a nonresident alien individual who is resident
in Ireland for the purposes of Irish tax are exempt from United States
tax under the provisions of Article XII of the convention.
[[Page 60]]
(b) To obviate withholding at the source in the case of such exempt
income the nonresident alien individual who is resident in Ireland for
the purposes of Irish tax shall notify the withholding agent by letter
in duplicate that such income is exempt from United States tax under the
provisions of Article XII of the convention. The letter of notification
shall be signed by the owner of the income, shall show the name and
address of both the payer and the owner, and shall contain a statement
that the owner, an individual, is neither a citizen nor a resident of
the United States but is resident in Ireland for the purposes of Irish
tax. This letter shall constitute authorization for the payment of such
income without deduction of the tax at source unless the Commissioner of
Internal Revenue subsequently notifies the withholding agent that the
tax should be withheld from payments of such income made after receipt
of such notice. If, after filing a letter of notification, the owner of
the income ceases to be eligible for the benefit of the convention, he
must promptly notify the withholding agent by letter in duplicate.
(c) Each letter of notification, or the duplicate thereof, must be
immediately forwarded by the withholding agent to the Commissioner of
Internal Revenue, Clearing Branch, Washington 25, D.C.
Sec. 513.7 Release of excess tax withheld at source.
(a) General. (1) In order to bring the convention into force and
effect at the earliest practicable date,
(i) The reduced rate of tax of 15 percent to be withheld at the
source from dividends, natural resource royalties, and real property
rentals, and
(ii) The exemption from tax otherwise withheld at the source from
interest, patent royalties, copyright royalties, film rentals, and the
like,
are hereby made effective beginning January 1, 1952, in any case in
which such natural resource royalties, real property rentals, interest,
patent royalties, copyright royalties, film rentals, and the like are
derived from sources within the United States, or in which such
dividends are derived from a United States corporation, by a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) who is resident in Ireland for the purposes of Irish tax,
or by a foreign corporation whose business is managed and controlled in
Ireland, if such alien or corporation is subject to Irish tax on such
income and at no time during the taxable year in which such income is so
derived had a permanent establishment within the United States.
(2) In the case of every such taxpayer whose address at the time of
payment was in Ireland and who furnishes to the withholding agent the
letter of notification prescribed in Secs. 513.3(b), 513.4, or
Sec. 513.5, where United States tax at the rate of 30 percent has been
withheld on or after January 1, 1952, there shall be released (except as
provided in paragraph (e) of this section) by the withholding agent and
paid over to the person from whom it was withheld:
(i) In the case of natural resource royalties and real property
rentals, an amount equal to 15 percent of such royalties and rentals,
and
(ii) In the case of interest (other than coupon bond interest),
patent royalties, copyright royalties, film rentals, and the like, an
amount equal to the tax so withheld.
(3) In the case of every such taxpayer whose address at the time of
payment was in Ireland and who furnishes to the withholding agent Form
1001-IR in duplicate, where United States tax at the rate of 28 percent
or 30 percent, as the case may be, has been withheld from coupon bond
interest on or after January 1, 1952, there shall be released (except as
provided in paragraph (e) of this section) by the withholding agent and
paid over to the person from whom it was withheld an amount equal to the
tax so withheld, if such taxpayer also files in duplicate with the
withholding agent as authorization for the release of such amount a Form
1001-IR clearly marked ``Substitute''. One such substitute form shall be
filed in duplicate with respect to each issue of bonds and will serve
with respect to that issue to replace all Forms 1001 previously filed by
such taxpayer in the calendar year in which the excess tax is released.
The
[[Page 61]]
use of Form 1001-IR with each presentation of interest coupons for the
purpose of obviating withholding of tax at source is set forth in
Sec. 513.3(b).
(4) In the case of dividends derived from a United States
corporation and paid to a nonresident alien (including a nonresident
alien individual, fiduciary, and partnership) or to a foreign
corporation, whose address at the time of payment was in Ireland, where
United States tax at the rate of 30 percent has been withheld from such
dividends on or after January 1, 1952, there shall be released (except
as provided in paragraph (d) of this section) by the withholding agent
and paid over to the person from whom it was withheld an amount equal to
15 percent of such dividends.
(b) Amounts withheld during 1951. For provisions respecting the
refund of excess tax withheld during the calendar year 1951, see
Sec. 513.11.
(c) Pensions and life annuities. (1) In order to bring the
convention into force and effect at the earliest practicable date the
exemption from tax otherwise withheld at the source from life annuities
and pensions, other than pensions paid by the Government of the United
States to individuals in respect of services rendered thereto in the
discharge of governmental functions, is hereby made effective beginning
January 1, 1952, in any case in which such pensions and life annuities
are derived from sources within the United States by a nonresident alien
individual who is resident in Ireland for the purposes of Irish tax.
(2) In the case of every such taxpayer whose address at the time of
payment was in Ireland and who furnishes to the withholding agent the
letter of notification prescribed in Sec. 513.6, where United States tax
at the rate of 30 percent has been withheld on or after January 1, 1952,
from such pensions or life annuities, as the case may be, there shall be
released by the withholding agent and paid over to the person from whom
it was withheld an amount equal to the tax so withheld.
(d) Subsidiary's dividends. (1) United States tax shall be withheld
at the rate of 15 percent from any dividend derived from a United States
corporation and paid on or after January 1, 1952, to a foreign
corporation whose address is in Ireland unless, prior to the date of
payment thereof, the Commissioner of Internal Revenue notifies the
domestic corporation that such dividend falls within the scope of the
proviso of Article VI(1) of the convention.
(2) In the case of every domestic corporation receiving notification
from the Commissioner of Internal Revenue under the provisions of
Sec. 513.2(b) that dividends paid or to be paid by it fall within the
scope of the proviso of Article VI(1) of the convention, where United
States tax in excess of the applicable rate of 5 percent has been
withheld on or after January 1, 1952, from dividends which come within
the scope of such proviso, the withholding agent shall, if so authorized
in such notification, release and pay over to the foreign corporation
from which it was withheld the excess tax withheld with respect to such
dividends.
(e) Interest paid where degree of stock ownership is determined. In
the case of every foreign corporation whose address at the time of
payment was in Ireland and which (1) furnishes to the domestic
corporation a copy of the Commissioner's authorization of release
prescribed in Sec. 513.3(c) and (2) files the letter of notification
prescribed in Sec. 513.3(b), or the substitute Form 1001-IR prescribed
in paragraph (a) of this section, whichever is applicable, where United
States tax at the rate of 28 percent or 30 percent, as the case may be,
has been withheld on or after January 1, 1952, the withholding agent
shall release and pay over to the foreign corporation from which it was
withheld an amount equal to the tax so withheld.
Sec. 513.8 Addressee not actual owner.
(a) If any person with an address in Ireland who receives a dividend
from a United States corporation with respect to which United States tax
at the rate of only 15 percent has been withheld at source is a nominee
or representative through whom such dividend flows to a person other
than one described in Sec. 513.2(a) as being entitled to such reduced
rate of 15 percent, such recipient in Ireland will withhold an
additional amount of United States tax equivalent to the difference
between the United States tax which would have
[[Page 62]]
been withheld had the convention not been in effect (30 percent as of
the date of approval of this subpart) and the 15 percent withheld at the
source with respect to such dividend pursuant to Sec. 513.2(d).
(b) In any case in which a fiduciary or partnership with an address
in Ireland receives, otherwise than as a nominee or representative, a
dividend from a United States corporation with respect to which United
States tax at the rate of only 15 percent has been withheld at source,
if a beneficiary of such fiduciary or a partner in such partnership is
not entitled to the reduced rate of tax provided in Article VI(1) of the
convention, the fiduciary or partnership will withhold an additional
amount of United States tax with respect to the portion of such dividend
included in such beneficiary's share of the distributed or distributable
income, or in such partner's distributive share of the income, of such
fiduciary or partnership, as the case may be. The amount of the
additional tax is to be calculated in the same manner as under paragraph
(a) of this section.
(c) If any amount of United States tax is released pursuant to
Sec. 513.7(a) by the withholding agent in the United States with respect
to a dividend received by such a person with an address in Ireland, the
latter will also withhold from such released amount any additional
amount of United States tax, otherwise required to be withheld by the
preceding provisions of this section in respect of such dividend, in the
same manner as if at the time of payment of such dividend United States
tax at the rate of only 15 percent had been withheld at source
therefrom.
(d) The amounts so withheld by such withholding agents in Ireland
will be deposited, without converting such amounts into United States
dollars, with the Irish Revenue Commissioners on or before the 15th day
after the close of the calendar year quarter in which such withholding
in Ireland occurs. Each withholding agent making such deposit will
render therewith the appropriate Irish form as prescribed in regulations
made by the Revenue Commissioners. The Revenue Commissioners have
arranged that the amounts so deposited will be remitted by draft in
United States dollars to the District Director of Internal Revenue,
Baltimore, Maryland, U.S.A., on or before the end of the calendar month
in which the deposits are made, such draft to be accompanied by the
Irish form rendered by the withholding agents in Ireland in connection
with such deposits.
Sec. 513.9 Information to be furnished in ordinary course.
In compliance with the provisions of Article XX of the convention
the Commissioner of Internal Revenue will transmit to the Irish Revenue
Commissioners, as soon as practicable after the close of the calendar
year 1952 and of each subsequent calendar year during which the
convention is in effect, the following information relating to such
preceding calendar year:
(a) The name and address of each person whose address as disclosed
on each available Form 1042 is in Ireland deriving from sources within
the United States dividends, interest, rent, royalties, salaries, wages,
pensions, annuities, and other fixed or determinable annual or
periodical income; and the amount of such income as disclosed on such
form with respect to each such person.
(b) The duplicate copy of each available ownership certificate, Form
1001-IR, filed pursuant to Sec. 513.3(b), and substitute Form 1001-IR,
filed pursuant to Sec. 513.7(a), in connection with coupon bond
interest.
Sec. 513.10 Beneficiaries of a domestic estate or trust.
A nonresident alien who is resident in Ireland for the purposes of
Irish tax and who is a beneficiary of a domestic estate or trust shall
be entitled to the exemption from, or reduction in the rate of, United
States tax provided in Articles VI, VII, VIII, IX, and XV of the
convention with respect to dividends, interest, royalties, natural
resource royalties, and real property rentals to the extent such item or
items are included in his share of the distributed or distributable
income of such estate or
[[Page 63]]
trust. In order to be entitled in such instance to the exemption from,
or reduction in the rate of, tax such beneficiary must otherwise satisfy
the requirements of these respective Articles of the convention and
must, where applicable, execute and submit to the fiduciary of such
estate or trust in the United States the appropriate letter of
notification prescribed in Secs. 513.3(b), 513.4, and 513.5.
Sec. 513.11 Refund of income tax withheld during 1951.
(a) If United States tax withheld at the source during the year 1951
from dividends, interest, royalties, natural resource royalties, real
property rentals, pensions, or life annuities is in excess of the tax
imposed by Chapter 1 (relating to the income tax) of the Internal
Revenue Code, as modified by the convention, claim by the taxpayer for
the refund of any overpayment shall be made under section 322 of the
Internal Revenue Code by filing Form 843 together with Form 1040NB, Form
1040NB-a, Form 1040B, or Form 1120NB, whichever is applicable, or with
an amended return.
(b) The taxpayer's total gross income from sources within the United
States, including every item of capital gain subject to tax under the
provisions of section 211(a)(1)(B) or 211(c) of the Internal Revenue
Code, shall be disclosed on the return. In the event that securities are
held in the name of a person other than the actual or beneficial owner,
the name and address of such person must be furnished with the claim.
There shall also be included in such claim for refund a statement:
(1) That the taxpayer was, at the time when the item or items of
income were derived, (i) a nonresident alien (including a nonresident
alien individual, fiduciary, or partnership) who at such time was
resident in Ireland for the purposes of Irish tax, or (ii) a foreign
corporation whose business at such time was managed and controlled in
Ireland.
(2) That the taxpayer at no time during the taxable year in which
the income was derived had a permanent establishment in the United
States.
(3) That the taxpayer is subject to Irish tax on the item or items
of income for which the benefit of the convention is claimed.
(c) If, however, the taxpayer is an individual who during the
taxable year derived from sources within the United States income which
consists exclusively of pensions or life annuities entitled to the
benefit of Article XII of the convention, the statements specified in
paragraph (b) (2) and (3) of this section will not be required.
(d) As to additional information required in the case of a foreign
corporation claiming the benefit of the 5 percent rate on dividends, or
in certain doubtful cases the benefit of the exemption with respect to
interest, paid by a domestic corporation, see Sec. 513.2(b) or
Sec. 513.3(c).
PART 514--FRANCE--Table of Contents
Subpart--Withholding of Tax
Taxable Years Beginning After December 31, 1956, And Before January 1,
1967, or Dividends, Interest, And Royalties Paid Before August 11, 1968
Sec.
514.1 Introductory.
514.2 Dividends.
514.3 Dividends received by addressee not actual owner.
514.4 Interest.
514.5 Patent and copyright royalties and film rentals.
514.6 Private pensions and life annuities.
514.7 Beneficiaries of a domestic estate or trust.
514.8 Release of excess tax withheld at source.
514.9 Refund of excess tax withheld.
514.10 Effective date.
Taxable Years Beginning After December 31, 1966, or Dividends, Interest,
And Royalties Paid on or After August 11, 1968
514.20 Introductory.
514.21 Dividends.
514.22 Dividends received by persons not entitled to reduced rate of
tax.
514.23 Interest.
514.24 Royalties.
514.25 Private pensions, alimony, and annuities.
514.26 Income covered by convention.
514.27 Beneficiaries of domestic estate and trust.
514.28 Release of excess tax withheld at source.
514.29 Refund of excess tax paid to Director of International
Operations.
[[Page 64]]
514.30 Information furnished in ordinary course.
514.31 Return required when liability not satisfied by withholding.
514.32 Effective date.
Subpart--General Income Tax
Regulations Effective Jan. 1, 1945
514.101 Introductory.
514.102 Applicable provisions of the Internal Revenue Code.
514.103 Scope of the convention.
514.104 Definitions.
514.105 Scope of convention with respect to determination of
``industrial and commercial profits'' of a nonresident alien
individual resident of France, or of a French corporation or
other entity carrying on a French enterprise in the United
States.
514.106 Control of a domestic enterprise by a French enterprise.
514.107 Income from operation of ships or aircraft.
514.108 Income from real property, including mineral royalties.
514.110 Government wages, salaries, and similar compensation, pensions,
and life annuities.
514.111 Compensation for labor or personal services.
514.112 Stocks, securities, and commodities.
514.113 Remittances to students.
514.114 Credit against United States tax liability for income tax paid
to France.
514.115 Adjustment of tax liability of residents of France and French
corporations.
514.116 Reciprocal administrative assistance.
514.117 Reciprocal regulations.
Authority: 26 U.S.C. 7805.
Subpart--Withholding of Tax
Taxable Years Beginning After December 31, 1956, And Before January 1,
1967, or Dividends, Interest, And Royalties Paid Before August 11, 1968
Source: Treasury Decision 6273, 22 FR 9530, Nov. 28, 1957; 25 FR
14022, Dec. 31, 1960, unless otherwise noted.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997, the
undesignated centerheading preceding Sec. 514.1 was removed, effective
Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the effective
date was delayed until Jan. 1, 2000.
Sec. 514.1 Introductory.
(a) Applicable provisions of convention. The income tax convention
between the United States and France, signed on July 25, 1939, and
October 18, 1946, as modified by the supplemental convention, signed
June 22, 1956 (the instruments of ratification of which were exchanged
on June 13, 1957), referred to in this part as the convention, provides
in part as follows, the quoted articles being effective as indicated:
Article I(a) of the Supplemental Convention of 1956, on June 13,
1957.
Article I(d) of the Supplemental Convention of 1956, on January 1,
1952.
Article 7 and the Protocol of the Convention of 1939, on January 1,
1945.
The supplemental convention signed June 22, 1956, provides in part
as follows:
Article I
The provisions of the Convention and Protocol between the United
States and the French Republic signed at Paris on July 25, 1939 are
hereby modified and supplemented as follows:
(a) By striking out Article 1(a) and inserting in lieu thereof the
following:
``(a) In the case of the United States: The Federal income taxes
(including surtaxes and excess profits taxes) and the documentary taxes
on sales or transfers of shares or certificates of stock or bonds.''
* * * * *
(d) By adding immediately after Article 6 the following new
articles:
``Article 6A
Dividends and interest derived, on or after January 1, 1952, from
sources within one of the contracting States by a resident or
corporation or other entity of the other State, not having a permanent
establishment in the former State shall be subject to tax by such former
State at a rate not in excess of 15 percent of the gross amount of such
dividends or interest. Such reduced rate of tax shall not apply to
dividends or interest paid prior to the calendar year in which are
exchanged the instruments of ratification of the present Convention if,
for the taxable year in which such dividends or interest is received,
penalty for fraud with respect to the taxes which are the subject of the
present Convention has been imposed against the recipient of such
dividends or interest.''
* * * * *
Article III
(a) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Paris as soon as possible.
[[Page 65]]
(b) Its provisions shall come into force and shall become effective
as of the date of the exchange of the instruments of ratification
subject both to the provisions of Article I (d) and (e) and to the
provisions set forth herein below.
* * * * *
(c) If refund of any overpayment resulting from the application of
Article I(d) of the present Convention is prevented on the date of
exchange of instruments of ratification or within two years from such
date by the operation of any law, refund of such overpayment (without
interest) shall nevertheless be made provided that claim for refund is
filed within two years after the date of the exchange of instruments of
ratification of the present Convention with the contracting State to
which such overpayment was made.
(d) The present Convention shall remain effective so long as the
Conventions signed July 25, 1939 and October 18, 1946, remain effective.
The convention of July 25, 1939, provides, in part, as follows:
Article 7
* * * * *
Royalties derived from within one of the contracting States by a
resident, or by a corporation or other entity of the other contracting
State as consideration for the right to use copyrights, patents, secret
processes and formulae, trademarks and other analogous rights shall be
exempt from taxation in the former State, provided such resident,
corporation or other entity does not have a permanent establishment
there.
Article 8
* * * * *
Private pensions and life annuities derived from within one of the
contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
Protocol:
* * * * *
III. As used in this Convention:
(a) The term ``permanent establishment'' includes branches, mines
and oil wells, plantations, factories, workshops, stores, purchasing and
selling and other offices, agencies, warehouses, and other fixed places
of business but does not include a subsidiary corporation.
When an enterprise of one of the contracting States carries on
business in the other State through an employee or agent, established
there, who has general authority to negotiate and conclude contracts or
has a stock of merchandise from which he regularly fills orders which he
receives, this enterprise shall be deemed to have a permanent
establishment in the latter State. But the fact that an enterprise of
one of the contracting States has business dealings in the other State
through a bona fide commission agent or broker shall not be held to mean
that such enterprise has a permanent establishment in the latter State.
Insurance enterprises shall be considered as having a permanent
establishment in one of the States as soon as they receive premiums from
or insure risks in the territory of that State.
IV. The term ``life annuities'' referred to in Article 8 of this
Convention means a stated sum payable periodically at stated times
during life, or during a specified number of years to the person who has
paid the premium or a gross sum for such an obligation.
The convention of October 18, 1946, provides, in part, as follows:
Title III
Administrative Assistance
* * * * *
Article 13
(1) The competent authorities of the two Contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of the present Convention and the Convention of July 25,
1939.
* * * * *
(b) Definitions--(1) In general. Any term defined in the convention
or Secs. 514.1 to 514.10 shall have the meaning so assigned to it; any
term not so defined shall, unless the context otherwise requires, have
the meaning which such term has under the internal revenue laws of the
United States.
(2) France. As used in Secs. 514.1 to 514.10, the term ``France'',
when used in a geographical sense, means continental France, exclusive
of Algeria and the Colonies.
Sec. 514.2 Dividends.
(a) General. (1) The rate of United States tax imposed by the
Internal Revenue Code upon dividends derived from sources within the
United States on or after January 1, 1952, by a nonresident alien
(including a nonresident
[[Page 66]]
alien individual, fiduciary, and partnership) who is a resident of
France when such dividend is so paid, or by a French corporation, shall
not exceed 15 percent if such alien or corporation at no time during the
taxable year in which such dividends are so received has no permanent
establishment within the United States. Article I(a) of the convention,
signed June 22, 1956. As to what constitutes a ``permanent
establishment'' see Protocol III(a), in Sec. 514.1.
(2) Thus, if a nonresident alien individual who is a resident of
France performs personal services within the United States during the
taxable year but has at no time during such year a permanent
establishment within the United States, he is entitled to the reduced
rate of tax with respect to dividends derived from United States
sources, as provided in Article I(d) of the convention even though under
the provisions of section 871(c) of the Internal Revenue Code of 1954 he
has engaged in trade or business within the United States during such
year by reason of his having rendered personal services therein.
(b) Effect of address in France on withholding in the case of
dividends. For the purpose of withholding of United States tax in the
case of dividends, every nonresident alien (including a nonresident
alien individual, fiduciary, and partnership) whose address is in France
shall be deemed by United States withholding agents to be a nonresident
alien who is a resident of France not having a permanent establishment
in the United States; and every foreign corporation whose address is in
France shall be deemed by such withholding agents to be a French
corporation not having a permanent establishment in the United States.
(c) Rate of withholding. (1) Withholding at source in the case of
dividends derived from sources within the United States and paid on or
after January 1, 1957, to nonresident aliens (including a nonresident
alien individual, fiduciary, and partnership) and to foreign
corporations, whose addresses are in France, shall be at the rate of 15
percent in every case except that in which, prior to the date of payment
of such dividends, the Commissioner of Internal Revenue has notified the
withholding agent that the reduced rate of withholding shall not apply.
(2) The preceding provisions respecting the application of the
reduced withholding rate in the case of dividends paid to nonresident
aliens and foreign corporations with addresses in France are based upon
the assumption that the payee of the dividend is the actual owner of the
capital stock from which the dividend is derived and consequently is the
person liable to the United States upon such dividend. As to action by
the recipient who is not the owner of the dividend, see Sec. 514.3.
(3) The rate at which the United States tax has been withheld from
any dividend paid at any time after the expiration of the thirtieth day
after the date on which Secs. 514.1 to 514.10 are published in the
Federal Register to any person whose address is in France at the time
the dividend is paid shall be shown either in writing or by appropriate
stamp on the check, draft, or other evidence of payment or on an
accompanying statement.
Sec. 514.3 Dividends received by addressee not actual owner.
(a) Additional tax to be withheld--(1) Nominee or representative.
The recipient in France of any dividend, paid on or after January 1,
1957, from which United States tax at the reduced rate of 15 percent has
been withheld at source pursuant to Sec. 514.2(c)(1), who is a nominee
or representative through whom the dividend is received by a person
other than one described in Sec. 514.2(a) as being entitled to the
reduced rate, shall withhold an additional amount of United States tax
equivalent to the United States tax which would have been withheld if
the convention had not been in effect (30 percent as of the date of
approval of Secs. 514.1 to 514.10) minus the 15 percent which has been
withheld at the source.
(2) Fiduciary or partnership. A fiduciary or a partnership with an
address in France which receives, otherwise than as a nominee or
representative, a dividend from which United States tax at the reduced
rate of 15 percent has been withheld at source pursuant to Sec. 514.2
shall withhold an additional amount of United States tax from the
portion of the dividend included in the
[[Page 67]]
gross income from sources within the United States of any beneficiary or
partner, as the case may be, who is not entitled to the reduced rate of
tax in accordance with Sec. 514.2(c). The amount of the additional tax
is to be calculated in the same manner as under subparagraph (1) of this
paragraph.
(3) Released amounts of tax. If any amount of United States tax is
released pursuant to Sec. 514.8(a)(1) by the withholding agent in the
United States with respect to a dividend paid to a nominee,
representative, fiduciary, or partnership with an address in France, the
latter shall withhold from such released amount any additional amount of
United States tax, otherwise required to be withheld from the dividend
by the provisions of subparagraphs (1) and (2) of this paragraph, in the
same manner as if at the time of payment of the dividends United States
tax at the rate of only 15 percent had been withheld at source
therefrom.
(b) Returns filed by French withholding agents. The amounts withheld
pursuant to paragraph (a) of this section by any withholding agent in
France shall be deposited, without converting the amounts into United
States dollars, with the Directeur General des Impots of France on or
before the 15th day after the close of the quarter of the calendar year
in which the withholding in France occurs. The withholding agent making
the deposit shall render therewith such appropriate French form as may
be prescribed by the Directeur General des Impots. The amounts so
deposited should be remitted by the Directeur General des Impots by
draft in the United States dollars to the Director, International
Operations Division, Internal Revenue Service, Washington 25, D. C., U.
S. A., on or before the end of the calendar month in which the deposit
is made, and should be accompanied by such French form as may be
required to be rendered by the withholding agent in France in connection
with the deposit.
Sec. 514.4 Interest.
(a) General. The rate of United States tax imposed by the Internal
Revenue Code upon interest on bonds, securities, notes, debentures, or
on any other form of indebtedness, including interest on obligations of
the United States, obligations of instrumentalities of the United
States, and mortgages and bonds secured by real property, which is
derived from sources within the United States in taxable years beginning
on or after January 1, 1952, by a nonresident alien (including a
nonresident alien individual, fiduciary, and partnership) who is a
resident of France, or by a French corporation or other entity, shall
not exceed 15 percent under the provisions of Article I(d) of the
convention if such alien, corporation, or other French entity at no time
during the taxable year in which such interest is received has a
permanent establishment in the United States. As to what constitutes a
permanent establishment see Article III(a) of the convention.
(b) Application of reduced rate at source. (1) To secure withholding
of United States tax at the rate of 15 percent at source in the case of
coupon bond interest, the nonresident alien who is a resident of France,
or the French corporation or other entity, shall, for each issue of
bonds, file Form 1001-F in duplicate when presenting the interest
coupons for payment. This form shall be signed by the owner of the
interest, or by his trustee or agent, and shall show the name and
address of the obligor, the name and address of the owner of the
interest, and the amount of the interest. It shall contain a statement
that the owner (i) is a resident of France, or is a French corporation
or other entity, and (ii) has no permanent establishment in the United
States.
(2) The reduction in the rate of United States tax contemplated by
Article 6A of the convention, insofar as it concerns coupon bond
interest, is applicable only to the owner of the interest. The person
presenting the coupon or on whose behalf it is presented shall, for the
purpose of the reduction in tax, be deemed to be the owner of the
interest only if he is, at the time the coupon is presented for payment,
the owner of the bond from which the coupon has been detached. If the
person presenting the coupon, or on whose behalf it is presented, is not
the owner of the bond, Form 1001, and not Form 1001-F, shall be
executed.
[[Page 68]]
(3) The original and duplicate of Form 1001-F shall be forwarded by
the withholding agent to the Director, International Operations
Division, Internal Revenue Service, Washington 25, D. C., with the
annual return on Form 1042. Form 1001-F shall be listed on Form 1042.
(4) To secure the reduced rate of United States tax at source in the
case of interest other than coupon bond interest, the nonresident alien
individual who is a resident of France, or the French corporation or
other entity, shall file Form 1001A-F in duplicate with the withholding
agent in the United States. This form shall be signed by the owner of
the interest, or by his trustee or agent, and shall show the name and
address of the obligor and the name and address of the owner of the
interest. It shall contain a statement that the owner (i) is a resident
of France, or is a French corporation or other entity, and (ii) has no
permanent establishment in the United States.
(5) Form 1001A-F shall be filed with the withholding agent for each
successive three-calendar-year period during which such interest is
paid. For this purpose, the first such period shall commence with the
beginning of the calendar year in which such income is first paid on or
after January 1, 1957. Each such form filed with any withholding agent
shall be filed not later than 20 days preceding the date of the first
payment within each successive period, or, if that is not possible
because of special circumstances, as soon as possible after such first
payment. Once such a form has been filed in respect of any three-
calendar-year period, no additional Form 1001A-F need be filed in
respect thereto unless the Commissioner of Internal Revenue notifies the
withholding agent that another such form shall be filed by the taxpayer.
If, after filing such form, the taxpayer ceases to be eligible for the
reduced rate of United States tax granted by Article 6A of the
convention in respect to such interest, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of the interest as recorded on the books of the payer, the
reduction in rate of withholding of United States tax shall no longer
apply unless the new owner of record is entitled to and does properly
file a Form 1001A-F with the withholding agent.
(6) The duplicate of each Form 1001A-F shall be immediately
forwarded by the withholding agent to the Director, International
Operations Division, Internal Revenue Service, Washington 25, D. C.
Sec. 514.5 Patent and copyright royalties and film rentals.
(a) Exemption from tax. Royalties for the right to use copyrights,
patents, designs, secret processes and formulae, trademarks, and other
analogous property, and royalties and rentals in respect of motion
picture films or for the use of industrial, commercial, or scientific
equipment, which are derived from sources within the United States on or
after January 1, 1945, by a nonresident alien individual who is a
resident of France, or by a French corporation, are exempt from United
States tax under the provisions of Article 7 of the convention signed
July 25, 1939, as modified by Article 7(b) of the convention signed
October 18, 1946, if such alien or corporation at no time during the
taxable year in which such income is derived has engaged in trade or
business within the United States through a permanent establishment
situated therein.
(b) Exemption from withholding of United States tax. To avoid
withholding of United States tax at source in the case of items of
income to which this section applies, the nonresident alien who is a
resident of France, or the French corporation, shall file Form 1001A-F,
in duplicate, with the withholding agent in the United States.
(c) Manner of filing. The provisions of Sec. 514.4 relating to the
execution, filing, effective period, and disposition of Form 1001A-F,
are equally applicable with respect to the income falling within the
scope of this section.
(d) Revocation of 26 CFR (1939) 7.418 (Treasury Decision 5499).
Effective January 1, 1957, the provisions of 26 CFR 7.418 (Rev. 1953,
Parts 1-79, and Supps.) (Treasury Decision 5499, 11 F.R. 2158), approved
February 27, 1946, are hereby made inapplicable, and the provisions of
this section are hereby substituted
[[Page 69]]
therefor with respect to payments of royalties and film rentals made on
or after January 1, 1957.
Sec. 514.6 Private pensions and life annuities.
(a) Exemption from tax. Private pensions and life annuities as
defined in paragraph (d) of this section, derived from sources within
the United States on or after January 1, 1945, and paid to a nonresident
alien who is a resident of France are exempt from United States tax
under the provisions of Article 8 of the convention of July 25, 1939.
(b) Exemption from withholding of United States tax--Form to use. To
secure exemption from withholding of United States tax at the source in
the case of private pensions and life annuities, the nonresident alien
who is a resident of France shall file Form 1001A-F, in duplicate, with
the withholding agent in the United States.
(c) Manner of filing. The provisions of Sec. 514.4 relating to the
execution, filing, effective period, and disposal of Form 1001A-F are
equally applicable with respect to the income falling within the scope
of this section.
(d) Definition. As used in this section, the term ``pensions'' means
periodic payments made in consideration for services rendered or by way
of compensation for injuries received, and the term ``life annuities''
means a stated sum payable periodically at stated times during life, or
during a specified number of years, under an obligation to make the
payments in return for adequate and full consideration in money or
money's worth. Neither term includes retired pay or pensions paid by the
United States or by any State or Territory of the United States.
Sec. 514.7 Beneficiaries of a domestic estate or trust.
(a) Entitled to benefits of convention. If he otherwise satisfies
the requirements of the respective articles concerned, a nonresident
alien individual who is a resident of France and who is a beneficiary of
a domestic estate or trust shall be entitled to the reduction in the
rate of, or exemption from, United States tax granted by Articles 6A and
7 of the convention with respect to dividends, interest, and patent
royalties and other like amounts to the extent that (1) any amount paid,
credited, or required to be distributed by such estate or trust to such
beneficiary is deemed to consist of such items, and (2) such items
would, without regard to the convention, be includible in his gross
income.
(b) Withholding of United States tax. In order to be entitled,
because of the application of paragraph (a) of this section, to the
reduction in rate of, or exemption from, withholding of United States
tax the beneficiary must otherwise satisfy the requirements of the
respective articles concerned, and shall, where applicable, execute and
submit to the fiduciary of the estate or trust in the United States the
appropriate form or forms prescribed in Secs. 514.4(b) and 514.6(b).
(c) Amounts otherwise includible in gross income of beneficiary. For
the determination of amounts which, without regard to the convention,
are includible in the gross income of the beneficiary, see subchapter J
of chapter 1 of the Internal Revenue Code of 1954, and the regulations
thereunder.
Sec. 514.8 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Dividends derived from domestic
corporation. If United States tax has been withheld at the statutory
rate on or after January 1, 1957, from dividends described in
Sec. 514.2(a) and derived from a domestic corporation by a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) or by a foreign corporation, whose address at the time of
payment was in France, the withholding agent shall release and pay over
to the person from whom the tax was withheld an amount which is equal to
the difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.2(c).
(2) Coupon bond interest--(i) Substitute form. In the case of every
taxpayer who furnishes to the withholding agent Form 1001-F clearly
marked ``Substitute'' and executed in accordance with Sec. 514.4(b)(1),
where United States tax has been withheld at the statutory rate on or
after January 1, 1957, from coupon bond interest, the withholding agent
shall release and pay over to the
[[Page 70]]
person from whom the tax was withheld an amount which is equal to the
difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.4(b)(1) if the taxpayer also attaches to
such form a letter in duplicate, signed by the owner, trustee, or agent
and containing the following:
(a) The name and address of the obligor;
(b) The name and address of the owner from which the excess tax was
withheld;
(c) A statement that, at the time when the interest was derived from
which the excess tax was withheld, the owner was neither a citizen nor a
resident of the United States but was a resident of France, or, in the
case of a corporation, the owner was a French corporation; and
(d) A statement that the owner at no time during the taxable year in
which the interest was derived was engaged in trade or business within
the United States through a permanent establishment situated therein.
One such substitute form shall be filed, in duplicate, with respect to
each issue of bonds and will serve with respect to that issue to replace
all Forms 1001 previously filed by the taxpayer in the calendar year in
which the excess tax was withheld and with respect to which such excess
is released. If the person presenting the coupon, or on whose behalf it
is presented, is not the owner of the bond, Form 1001, and not Form
1001-F, shall be executed.
(ii) Disposition of form. The original and duplicate of substitute
Form 1001-F (and letter) shall be forwarded by the withholding agent to
the Director, International Operations Division, Internal Revenue
Service, Washington, D.C., with the annual return on Form 1042.
Substitute Form 1001-F need not be listed on Form 1042.
(3) Noncoupon interest, royalties, private pensions, and life
annuities. (i) If a taxpayer furnishes to the withholding agent a Form
1001A-F, properly executed as prescribed by Sec. 514.4(b)(4), and United
States tax has been withheld at the statutory rate on or after January
1, 1957, from noncoupon interest payments in respect of which the form
is filed, the withholding agent should release and pay over to the
person from whom the tax was withheld an amount which is equal to the
difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.4(b)(4).
(ii) If a taxpayer furnishes to the withholding agent a Form 1001A-
F, properly executed as prescribed by Sec. 514.4(b)(4), and United
States tax has been withheld at the statutory rate on or after January
1, 1957, from royalties, private pensions, and life annuities in respect
of which the form is filed, the withholding agent shall release and pay
over to the person from whom the tax was withheld an amount which is
equal to the total tax so withheld.
(b) Amounts not to be released. The provisions of this section do
not apply to excess tax withheld at source which has been paid by the
withholding agent to the internal revenue officer entitled to receive
payment of the tax withheld under chapter 3 of the Internal Revenue Code
of 1954.
(c) Statutory rate. As used in this section, the term ``statutory
rate'' means the rate prescribed by chapter 3 of the Internal Revenue
Code of 1954 and the regulations thereunder, as though the convention
had not come into effect.
Sec. 514.9 Refund of excess tax withheld.
(a) Years 1952, 1953, 1954, 1955, 1956. Where the tax withheld at
the source upon dividends and interest paid in any one or more of the
calendar years 1952, 1953, 1954, 1955, and 1956 is in excess of the tax
due from the taxpayer under the convention, supplemented as set forth
above, it will be necessary for the taxpayer to file an income tax
return (Form 1040NB France for individuals and Form 1120NB France for
corporations) with respect to such taxable year or years. The return
shall cover all years for which a refund is claimed. The return must be
filed on or before June 13, 1959. One return shall cover all years for
which a refund is claimed. The taxpayer's total fixed or determinable,
annual or periodical income (other than royalties) from sources within
the United States should be reported on the return, and the income for
each taxable year should be shown separately. There shall also be shown
on such returns the amounts, if any, received in any of such years of
capital
[[Page 71]]
gains (other than gains from the sale or exchange of stocks, securities
or commodities) from sources within the United States. For this purpose,
beginning with the calendar year 1954, certain distributions from
employees' trusts, and amounts received incident to disposal of timber
or coal or patent rights shall be included in such capital gains. See
section 871(a)(1) of the Internal Revenue Code of 1954 for provisions
pertaining to individual taxpayers and section 881(a) for provisions
pertinent to corporate taxpayers. There shall be included with the
return the following statements:
(1) That the taxpayer was a nonresident alien (including a
nonresident alien individual, fiduciary, or partnership) resident in
France or was a French corporation, during the year or years for which
the return is filed;
(2) That the taxpayer had no permanent establishment in the United
States during the respective years in which the income was received;
(3) That no penalty for fraud has been imposed by the United States
against the taxpayer claimant with respect to income tax for the year or
years for which the return is filed.
In addition to the above statements, all information requested on the
return must be furnished. Any tax paid in excess of that due from the
owner of the income will be refunded by the United States Government as
required by law. For the purpose of refund of excess tax withheld
resulting from the tax convention, a properly executed return on Form
1040NB France or Form 1120NB France shall constitute a claim for refund
or credit for the amount of the overpayment disclosed by such return.
(b) Date of payment of tax. The United States tax withheld from
dividends and interest derived from sources within the United States by
nonresident aliens, or by a foreign corporation not engaged in trade or
business in the United States, is deemed to have been paid on March 15
of the calendar year immediately succeeding that in which such income
has been so derived. Section 1461, Internal Revenue Code of 1954. Hence,
the United States tax withheld from dividends and interest derived by
such aliens resident in France and such French corporations for the
years 1952, 1953, 1954, 1955, and 1956 is deemed to have been paid,
respectively, on March 15, 1953, March 15, 1954, March 15, 1955, March
15, 1956, and March 15, 1957.
Sec. 514.10 Effective date.
The provisions of Secs. 514.1 through 517.9 shall be effective with
respect to taxable years beginning after December 31, 1956, and before
January 1, 1967, or with respect to dividends, interest, and royalties
paid before August 11, 1968.
[T.D. 6986, 34 FR 136, Jan. 4, 1969]
Taxable Years Beginning After December 31, 1966, or Dividends, Interest,
And Royalties Paid on or After August 11, 1968
Source: Treasury Decision 6986, 34 FR 136, Jan. 4, 1969, unless
otherwise noted.
Sec. 514.20 Introductory.
(a) Applicable provisions of convention. The income tax convention
between the United States and France, signed on July 28, 1967 (the
instruments of ratification of which were exchanged on July 11, 1968),
provides in part as follows, effective for taxable years beginning after
December 31, 1966, or with respect to the rate of withholding tax, for
dividends, interest, and royalties paid on or after August 11, 1968:
Article 1--Taxes Covered
(1) The taxes which are the subject of the present Convention are:
(a) In the case of the United States, the Federal income tax,
including surtax, imposed by the Internal Revenue Code and
(b) In the case of France:
(i) The income tax on the income of physical persons, the
complementary tax, the corporation tax, including any withholding tax,
prepayment (precompte) or advance payment with respect to the aforesaid
taxes, and
(ii) The tax on Stock Exchange transactions.
(2) The Convention shall also apply to any documentary taxes on
sales or transfers of shares or certificates of stock or bonds which are
subsequently imposed.
(3) The Convention shall also apply to any identical or
substantially similar taxes which are subsequently imposed in addition
to, or in place of, the existing taxes.
(4) For the purpose of Article 24 (Nondiscrimination), this
Convention shall also
[[Page 72]]
apply to taxes of every kind and to those imposed at the national,
State, and local level.
Article 2--General Definitions
(1) In this Convention, unless the context otherwise requires:
(a) The term ``United States of America'' means the United States of
America and when used in the geographical sense means the States thereof
and the District of Columbia. The term ``France'' when used in a
geographical sense means Metropolitan France and the Overseas
departments (Guadeloupe, Guyane, Martinique, and Reunion).
(b) The terms ``a Contracting State'' and ``the other Contracting
State'' means the United States or France, as the context requires.
(c) The term ``person'' comprises an individual or a corporation, or
any other body of individuals or persons.
(d)(i) The term ``United States corporation'' or ``corporation of
the United States'' means a corporation, or any entity treated as a
corporation for U.S. tax purposes, which is created or organized under
the laws of the United States or any State thereof or the District of
Columbia; and
(ii) The term ``French corporation'' or ``corporation of France''
means any body corporate or any entity which is treated as a body
corporate under French tax law, which is resident within France for
French tax purposes.
(e) The term ``competent authority'' means:
(i) In the case of the United States, the Secretary of the Treasury
or his delegate, and
(ii) In the case of France, the Minister of Economy and Finance or
his delegate.
(2) As regards the application of the Convention by a Contracting
State any term not otherwise defined shall, unless the context otherwise
requires, have the meaning which it has under the laws of that
Contracting State relating to the taxes which are the subject of the
Convention.
Article 3--Fiscal Domicile
(1) The term ``resident of France'' means:
(a) A French corporation, and
(b) Any person (other than a body corporate or any entity which
under French law is treated as a body corporate) who is resident in
France for purposes of its tax.
(2) The term ``resident of the United States'' means:
(a) A U.S. corporation, and
(b) Any person (other than a corporation or an entity treated under
U.S. law as a corporation) who is resident in the United States for
purposes of its tax, but in the case of a person acting as a partner or
fiduciary only to the extent that the income derived by such person in
that capacity is taxed as the income of a resident.
(3) An individual who is a resident in both Contracting States shall
be deemed a resident of that Contracting State in which he maintains his
permanent home. If he has a permanent home in both Contracting States or
in neither of the Contracting States, he shall be deemed a resident of
that Contracting State with which his personal and economic relations
are closest (center of vital interests). If the Contracting State in
which he has his center of vital interests cannot be determined, he
shall be deemed a resident of that Contracting State in which he has an
habitual abode. If he has an habitual abode in both Contracting States
or in neither of the Contracting States, the competent authorities of
the Contracting States shall settle the question by mutual agreement.
For purposes of this Article, a permanent home is the place in which an
individual dwells with his family. An individual who is deemed to be a
resident of one Contracting State and not a resident of the other
Contracting State by reason of the provisions of this paragraph shall be
deemd a resident only of the former State for all purposes of this
Convention (including Article 22).
Article 4--Permanent Establishment
(1) For the purposes of this Convention, the term ``permanent
establishment'' means a fixed place of business through which a resident
of one of the Contracting States engaged in industrial or commercial
activity.
(2) The term ``permanent establishment'' shall include especially:
(a) A seat of management,
(b) A branch;
(c) An office;
(d) A factory;
(e) A workshop;
(f) A warehouse;
(g) A mine, quarry, or other place of extraction of natural
resources;
(h) A building site or construction or assembly project which exists
for more than 12 months.
(3) Notwithstanding paragraph (1) of this Article, a permanent
establishment shall not include a fixed place of business used only for
one or more of the following activities:
(a) The use of facilities for the purpose of storage, display, or
delivery of goods or merchandise belonging to the resident;
(b) The maintenance of a stock of goods or merchandise belonging to
the resident for the purpose of storage, display, or delivery;
(c) The maintenance of a stock of goods or merchandise belonging to
the resident for the purpose of processing by another person;
(d) The maintenance of a fixed place of business for the purpose of
purchasing goods or merchandise, or for collecting information, for the
resident;
[[Page 73]]
(e) The maintenance of a fixed place of business for the purpose of
advertising, for the supply of information, for scientific research, or
for similar activities which have a preparatory or auxiliary character,
for the resident.
(4) A person acting in a Contracting State on behalf of a resident
of the other Contracting State--other than an agent of an independent
status to whom paragraph (5) applies--shall be deemed to be a permanent
establishment in the first-mentioned State if such person:
(a) Has, and habitually exercises in that State, an authority to
conclude contracts in the name of that resident, unless the exercise of
such authority is limited to the purchase of goods or merchandise for
that resident, or
(b) Maintains substantial equipment or machinery within the first-
mentioned State for a period of 12 months or more.
(5) A resident of a Contracting State shall not be deemed to have a
permanent establishment in the other Contracting State merely because
such resident carries on business in that other State through a broker,
general commission agent, or any other agent of an independent status,
where such persons are acting in the ordinary course of their business.
(6) The fact that a resident of one of the Contracting States is a
related person, as defined in Article 8 of this Convention, with respect
to a resident of the other Contracting State or with respect to a person
which engages in industrial or commercial activity in that other
Contracting State (whether through a permanent establishment or
otherwise) shall not be taken into account in determining whether that
resident of the first Contracting State has a permanent establishment in
the other Contracting State.
(7) An insurance company of one of the Contracting States shall be
considered as having a permanent establishment in the other Contracting
State if, through a representative other than one described in paragraph
(5), such company receives premiums from or insures risks in the
territory of that other Contracting State.
* * * * *
Article 6--Business Profits
(1) Industrial or commercial profits of a resident of one of the
Contracting States shall be taxable only in that State unless such
resident is engaged in industrial or commercial activity in the other
Contracting State through a permanent establishment situated therein. If
such resident is so engaged, tax may be imposed by such other State on
the industrial or commercial profits of such resident but only on so
much of them as are attributable to the permanent establishment.
(2) Where a resident of a Contracting State carries on business in
the other Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed to that
permanent establishment the industrial or commercial profits which would
be attributable to such permanent establishment if such permanent
establishment were an independent entity engaged in the same or similar
activities under the same or similar conditions and dealing at arm's
length with the resident of which it is a permanent establishment.
(3) In the determination of the profits of a permanent
establishment, there shall be allowed as deductions expenses which are
reasonably connected with such profits including executive and general
administrative expenses, whether incurred in the State in which the
permanent establishment is situated or elsewhere.
(4) No profits shall be attributed to a permanent establishment
merely by reason of the purchase of goods or merchandise by that
permanent establishment, or by the resident of which it is a permanent
establishment, for the account of that resident.
(5) The term ``industrial or commercial profits of a resident''
includes income derived from manufacturing, mercantile, agricultural,
fishing, or mining activities, from the operation of ships or aircraft,
from the furnishing of personal services, from the rental of tangible
personal property, and from insurance activities and rents or royalties
derived from motion picture films, films or tapes of radio or television
broadcasting. It also includes income derived from real property and
natural resources and dividends, interest, royalties (as defined in
paragraphs (3) and (4) of Article 11), and capital gains but only if the
right or property giving rise to such income, dividends, interest,
royalties, or capital gains is effectively connected with a permanent
establishment which the recipient, being a resident of one Contracting
State, has in the other Contracting State. It does not include income
received by an individual as compensation for personal services either
as an employee or in an independent capacity.
* * * * *
Article 9--Dividends
(1) Dividends derived from sources within a Contracting State by a
resident of the other Contracting State may be taxed in that other
State.
(2) Dividends derived from sources within a Contracting State by a
resident of the other Contracting State may also be taxed by the former
Contracting State but the tax imposed on such dividends shall not
exceed--
[[Page 74]]
(a) 15 percent of the amount actually distributed; or
(b) When the recipient is a corporation, 5 percent of the amount
actually distributed if--
(i) During the part of the paying corporation's taxable year which
precedes the date of payment of the dividend and during the whole of its
prior taxable year (if any), at least 10 percent of the outstanding
shares of the voting stock of the paying corporation was owned by the
recipient corporation, and
(ii) Not more than 25 percent of the gross income of the paying
corporation for such prior taxable year (if any) consisted of interest
and dividends (other than interest derived in the conduct of a banking,
insurance, or financing business and dividends or interest received from
subsidiary corporations, 50 percent or more of the outstanding shares of
the voting stock of which was owned by the paying corporation at the
time such dividends or interest were received).
(3) Paragraph (2) of this Article and, in the case of dividends
derived by a resident of France, paragraph (1) of this Article, shall
not apply if the recipient of the dividends has a permanent
establishment in the other Contracting State and the shares with respect
to which the dividends are paid are effectively connected with the
permanent establishment. In such a case, the provisions of Article 6
shall apply.
(4)(a) Except as provided in subparagraph (b), dividends paid by a
corporation of one of the Contracting States shall be treated as income
from sources within that Contracting State, and dividends paid by any
other corporation shall be treated as income from sources outside that
Contracting State.
(b) Dividends paid by a corporation other than a U.S. corporation
shall be treated as dividends from sources within the United States if
such corporation had a permanent establishment in the United States and
more than 80 percent of its gross income was taxable to such permanent
establishment for a 3-year period ending with the close of its taxable
year preceding the declaration of such dividends (or for such portion of
that period as the corporation has been in existence).
(5) When the prepayment (precompte) is levied on dividends paid by a
French corporation to a resident of the United States, such resident
shall be entitled to the refund of that prepayment, subject to deduction
of the withholding tax with respect to the refunded amount in accordance
with paragraph (2) of this Article.
Article 10--Interest
(1) Interest derived from sources within one Contracting State by a
resident of the other Contracting State may be taxed in that other
State.
(2) Interest on bonds, notes, debentures, or any other form of
indebtedness from sources within the United States and paid to a
resident of France may also be taxed by the United States at a rate not
in excess of 10 percent of the amount paid.
(3) Interest on bonds, notes, debentures, or any other form of
indebtedness from sources within France and paid to a resident of the
United States may also be taxed by France at a rate not in excess of 10
percent of the amount paid except that interest on bonds issued before
January 1, 1965, may be taxed at a rate not in excess of 12 percent of
the amount paid.
(4) Paragraphs (2) and (3) of this Article and, in the case of
interest derived by a resident of France, paragraph (1) of this Article,
shall not apply if the recipient of the interest, being a resident of
one of the Contracting States, has a permanent establishment in the
other Contracting State and the indebtedness giving rise to the interest
is effectively connected to such permanent establishment. In such a
case, the provisions of Article 6 shall apply.
(5) The term ``interest'' as used in this article means income from
Government securities, bonds, or debentures, whether or not secured by
mortgage and whether or not carrying a right to participate in profits,
and debt-claims of every kind as well as all other income assimilated to
income from money lent by the taxation law of the State in which the
income has its source.
(6) Interest shall be deemed to be from sources within a Contracting
State when the payer is that State itself, a political subdivision, a
local authority, or a resident of that State. Where, however, the person
paying the interest, whether he is a resident of a Contracting State or
not, has in a Contracting State a permanent establishment in connection
with which the indebtedness on which the interest is paid was incurred,
and such interest is borne by such permanent establishment, then such
interest shall be deemed to be from sources within the Contracting State
in which the permanent establishment is situated.
(7) Where, owing to a special relationship between the payer and the
recipient or between both of them and some other person, the amount of
the interest paid, having regard to the debt claim for which it is paid,
exceeds the amount which would have been agreed upon by the payer and
the recipient in the absence of such relationship, the provisions of
this Article shall apply only to the last-mentioned amount. In that
case, the excess part of the payments shall remain taxable according to
the laws of each Contracting State, due regard being had to the other
provisions of this Convention.
(8) Interest received by one of the Contracting States, or by an
instrumentality of that State not subject to income tax by such
[[Page 75]]
State, shall be exempt in the State in which such interest has its
source.
Article 11--Royalties
(1) Royalties derived from sources within one Contracting State by a
resident of the other Contracting State may be taxed in that other
State.
(2) Except as provided in paragraph (3), royalties derived from
sources within a Contracting State by a resident of the other
Contracting State may also be taxed by the former Contracting State but
the tax imposed on such royalties shall not exceed 5 percent of the
gross amount paid.
(3) Royalties derived from copyrights of literary, artistic, or
scientific works (including gain from the sale or exchange of property
giving rise to such royalties) by a resident of one Contracting State
shall be taxable only in that Contracting State.
(4) The term ``royalties'' as used in paragraph (1) of this Article
means--
(a) Any royalties, rentals, or other amounts paid as consideration
for the use of, or the right to use, patents, designs or models, plans,
secret processes or formulae, trademarks, or other like property or
rights, or for knowledge, experience, or skill (know-how), and
(b) Gains derived from the sale or exchange of any such right or
property, if payment of the amounts realized on such sale or exchange is
contingent, in whole or in part, on the productivity, use or disposition
of such right or property. If the amounts derived from the sale or
exchange of any such right or property are not so contingent, the
provisions of Article 12 shall apply.
(5) Paragraphs (2) and (3) of this Article, and, in the case of
royalties derived by a resident of France, paragraph (1) of this
Article, shall not apply if the recipient of the royalty, being a
resident of one of the Contracting States, has in the other Contracting
State a permanent establishment and the right or property giving rise to
the royalties is effectively connected with such permanent
establishment. In such a case, the provisions of Article 6 shall apply.
(6) Royalties paid for the use of, or the right to use, property
described in paragraph (4) in a State shall be treated as income from
sources within that State.
(7) Where, owing to a special relationship between the payer and the
recipient, or between both of them and some other person, the amount of
the royalties paid exceeds the amount which would have been agreed upon
by the payer and the recipient in the absence of such relationship, the
provisions of this Article shall only apply to the last-mentioned
amount. In that case, the excess part of the payments shall remain
taxable according to the laws of each Contracting State, due regard
being had to the other provisions of this Convention.
* * * * *
Article 13--Branch Profits
(1)(a) Dividends paid by a French corporation to a person other than
a citizen, resident, or corporation of the United States shall be exempt
from tax by the United States unless such French corporation had a
permanent establishment in the United States and more than 80 percent of
its gross income was taxable to such permanent establishment for a 3-
year period ending with the close of its taxable year preceding the
declaration of such dividends (or for such portion of that period as the
corporation has been in existence).
* * * * *
Article 16--Governmental Functions
(1) Remuneration, including pensions, paid by, or out of funds
created by, a Contracting State or a political subdivision or a local
authority thereof to any individual who is a national of that State in
respect of services rendered to that State or a subdivision or local
authority thereof in the discharge of functions of a governmental nature
shall be taxable only in that Contracting State.
(2) The provisions of Articles 15, 19, and 20 shall apply to
remuneration or pensions in respect of services rendered in connection
with any industrial or commercial activity carried on by one of the
Contracting States or a political subdivision or a local authority
thereof.
(3) In the case of an individual who is a national of both
Contracting States, the provisions of Article 22, paragraph (4), shall
apply to remuneration described in paragraph (1) but such remuneration
shall be treated as income from sources within the Contracting State
from which such individual receives such remuneration.
* * * * *
Article 19--Private Pensions and Annuities
(1) Except as provided in Article 16, pensions and other similar
remuneration paid to a resident of a Contracting State in consideration
of past employment shall be taxable only in that Contracting State.
(2) Alimony and annuities paid to a resident of a Contracting State
shall be taxable only in that Contracting State.
(3) The term ``annuities,'' as used in this Article, means a stated
sum paid periodically at stated times during life, or during a
[[Page 76]]
specified number of years, under an obligation to make the payments in
return for adequate and full consideration (other than services
rendered).
(4) The term ``pensions,'' as used in this Article, means periodic
payments made after retirement in consideration for, or by way of
compensation for injuries received in connection with, past employment.
* * * * *
Article 27--Assistance in Collection
(1) The two Contracting States undertake to lend assistance and
support to each other in the collection of the taxes to which the
present Convention relates, together with interest, costs, and additions
to the taxes and fines not being of a penal character according to the
laws of the State requested, in the cases where the taxes are
definitively due according to the laws of the State making the
application.
(2) In the case of an application for enforcement of taxes, revenue
claims of each of the Contracting States which have been finally
determined will be accepted for enforcement by the State to which
application is made and collected in that State in accordance with the
laws applicable to the enforcement and collection of its own taxes.
(3) The application will be accompanied by such documents as are
required by the laws of the State making the application to establish
that the taxes have been finally determined.
(4) If the revenue claim has not been finally determined, the State
to which application is made will take such measures of conservancy
(including measures with respect to transfer of property of nonresident
aliens) as are authorized by its laws for the enforcement of its own
taxes.
(5) The assistance provided for in this Article shall not be
accorded with respect to citizens, corporations, or other entities of
the State to which application is made.
* * * * *
Article 31--Entry Into Force
(1) This Convention shall be ratified and instruments of
ratification shall be exchanged at Washington. It shall enter into force
1 month after the date of exchange of the instruments of ratification.
Its provisions shall for the first time have effect:
(a) In the case of France:
(i) As respects withholding taxes, to any proceeds payable and
transactions completed on or after the date on which this Convention
enters into force;
(ii) As respects other income taxes, to taxes which are levied for
the assessment year 1967; and
(iii) As respects the tax on stock exchange transactions, the date
on which this Convention enters into force.
(b) In the case of the United States:
(i) As respects the rate of withholding tax, to amounts received on
or after the date on which this Convention enters into force;
(ii) As respects other income taxes, to taxable years beginning on
or after January 1, 1967.
(2) Upon the coming into effect of this Convention, there shall
terminate:
(a) The Convention of July 25, 1939, relating to income and other
taxes.
(b) The Convention of October 18, 1946, the supplementary Protocol
of May 17, 1948, and the Convention of June 22, 1956, insofar as they
concern taxes on income, on capital and tax on stock exchange
transactions.
The provisions of those Conventions and of that Protocol will cease to
have effect from the date on which the corresponding provisions of the
present Convention shall for the first time have effect according to the
subparagraph (1) above-mentioned.
Article 32--Termination
This Convention shall remain in force until denounced by one of the
Contracting States. Either Contracting State may denounce the
Convention, through diplomatic channels, by giving notice of termination
at least 6 months before the end of any calendar year after the year
1969. In such event, the Convention shall cease to have effect:
(1) In the case of France:
(a) As respects withholding taxes, on January 1 of the year
following the year in which notice is given.
(b) As respects other income taxes, for any year of assessment
beginning on or after January 1 of the year following the year in which
notice is given; and
(c) As respects the tax on stock exchange transactions, for any
transactions occurring on or after January 1 of the year following the
year in which notice is given.
(2) In the case of the United States:
(a) As respects withholding taxes, on January 1 of the year
following the year in which notice is given;
(b) As respects other income taxes, for any taxable year beginning
on or after January 1 of the year following the year in which notice is
given; and
(c) As respects taxes referred to in paragraph (2) of Article 1, for
any transactions occurring on or after January 1 of the year following
the year in which notice is given.
(b) Definitions. Any term defined in the convention shall have the
meaning so assigned to it; any term not so defined shall, unless the
context otherwise requires, have the meaning which
[[Page 77]]
such term has under the internal revenue laws of the United States.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.20 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.21 Dividends.
(a) Exemption from or reduction in rate of United States tax--(1)
Exempt from U.S. tax. Except as provided in subparagraph (2) of this
paragraph, dividends paid by a French corporation on or after August 11,
1968, to a nonresident alien individual or foreign corporation are
exempt from tax by the United States under the provisions of Article
13(1)(a) of the convention. Such dividends are, therefore, not subject
to the withholding of U.S. tax at source.
(2) Exemption and reduced rate of withholding not applicable.
Dividends paid by a French corporation on or after August 11, 1968, to a
nonresident alien individual or foreign corporation (other than a
resident of France or a French corporation) are subject to U.S. tax in
accordance with the provisions of section 871(a) or 881(a) of the
Internal Revenue Code and the regulations thereunder if the paying
corporation has a permanent establishment in the United States and more
than 80 percent of its gross income was taxable to such permanent
establishment for a 3-year period ending with the close of its taxable
year preceding the declaration of such dividends (or for such portion of
that period as the corporation has been in existence). Such dividends
are not eligible for the reduced rate of withholding under Article 9(2)
of the convention or to exemption from tax under Article 13(1)(a) of the
convention.
(3) Application of reduced rate--(i) Rate of 15 percent. Except as
provided in subdivision (ii) of this subparagraph, and subparagraph (4)
of this paragraph the rate of U.S. tax imposed upon dividends derived
from sources within the United States on or after August 11, 1968, and
received by a nonresident alien individual who is a resident of France
or a French corporation or a person resident in France for French tax
purposes shall not exceed 15 percent of the gross amount actually
distributed as provided for in Article 9(2) of the convention. For the
purposes of this section the gross amount actually distributed includes
amounts constructively received.
(ii) Rate of 5 percent. The rate of U.S. tax imposed upon dividends
derived from sources within the United States on or after August 11,
1968, and received by a French corporation shall not exceed 5 percent of
the gross amount actually distributed if--
(a) During the part of the paying corporation's taxable year which
precedes the date of payment of the dividend and during the whole of its
prior taxable year (if any), at least 10 percent of the outstanding
shares of the voting stock of the paying corporation was owned by the
recipient corporation, and
(b) Not more than 25 percent of the gross income of the paying
corporation for such prior taxable year (if any) consisted of interest
and dividends (other than interest derived in the conduct of a banking,
insurance, or financing business and dividends or interest received from
subsidiary corporations, 50 percent or more of the outstanding shares of
the voting stock of which was owned by the paying corporation at the
time such dividends or interest were received).
(iii) Information to be filed with the Commissioner when claiming a
5-percent rate. Any paying corporation which claims or contemplates
claiming that dividends paid or to be paid by it on or after August 11,
1968, are subject to United States tax at the rate of 5 percent under
Article 9 of the convention shall file the following information with
the Commissioner of Internal Revenue, Washington, D.C. 20224, as soon as
practicable:
(a) The date and place of its organization;
(b) The number and a brief description of outstanding shares of
stock of the paying corporation and the voting power thereof;
(c) The number of shares of each class of voting stock of the paying
corporation owned by the recipient corporation and the date the
recipient corporation acquired such stock;
[[Page 78]]
(d) The amount of the gross income of the paying corporation for its
taxable year immediately preceding the taxable year in which the
dividends are paid;
(e) The amount of the interest and dividends included in such gross
income, the amount of such interest derived in the conduct of a banking,
insurance, or financing business, if any, and the amount of such
interest and dividends received from a subsidiary corporation in which
the paying corporation owns at least 50 percent of the voting stock on
the date of receipt.
(iv) Notification by Commissioner--5 percent rate. As soon as
practicable after such information is filed, the Commissioner of
Internal Revenue will determine whether the dividends concerned qualify
under Article 9 of the convention for the reduced rate of 5 percent and
will notify the paying corporation of his determination. If the
dividends qualify for such reduced rate, this notification may also
authorize the release, pursuant to Sec. 514.28(a)(1)(ii), of excess tax
withheld from the dividends concerned. A duplicate copy of such
notification shall be attached to the Form 1042S filed by the paying
corporation for the first year of payment. There shall be attached to
Form 1042S filed by the paying corporation for each subsequent year of
payment a statement that the conditions upon which the notification was
issued are applicable to such subsequent year.
(4) Dividends effectively connected with a permanent establishment.
The reduction in rate of tax provided in subparagraph (3) of this
paragraph shall not apply if the owner of the dividends has a permanent
establishment in the United States and the shares with respect to which
the dividends are paid are effectively connected with such permanent
establishment. Such dividends are subject to tax in accordance with the
provisions of Article 6 of the convention.
(b) Withholding of tax from dividends-- (1) 15 percent rate--(i)
Reduction based on address in France. Except as provided in subparagraph
(2) of this paragraph, withholding of United States tax at source on or
after August 11, 1968, from dividends derived from sources within the
United States by a person whose address is in France, shall be at the
reduced rate of 15 percent in every case except that in which, prior to
the date of payment of such dividends, the Commissioner of Internal
Revenue or the owner of the dividends has notified the withholding agent
that such reduced rate of withholding shall not apply.
(ii) Reduced rate of 15 percent applicable only to owner of capital
stock. The reduced rate of 15 percent is available only to the real
owner of the capital stock from which the dividend is derived. As to
action by a French addressee who is not the real owner of the capital
stock, see Sec. 514.22(c).
(iii) Evidence of rate of tax withheld. The rate at which U.S. tax
has been withheld from a dividend paid on or after August 11, 1968, to a
person whose address is in France on the date the dividend is paid to
such person shall be shown either in writing or by appropriate stamp on
the check, draft, or other evidence of payment, or on an accompanying
statement.
(2) 5-percent rate--(i) Reduction based on notification by
Commissioner. If, in accordance with paragraph (a)(3)(iv) of this
section, the Commissioner of Internal Revenue has notified the paying
corporation that the dividends qualify under Article 9 of the convention
for the reduced rate of 5 percent, the reduced withholding rate of 5
percent, to the extent withholding of U.S. tax is required, shall apply
to any dividends paid by the paying corporation on or after August 11,
1968.
(ii) Dividends cease to qualify for 5-percent rate. If, after
receipt of notification from the Commissioner of Internal Revenue that
the dividends qualify for the reduced rate of 5 percent, the French
recipient corporation ceases to be eligible for the reduction in rate
because one or more of the conditions of subdivision (ii) (a) or (b) of
paragraph (a)(3) of this section are not satisfied, the reduction in the
rate of withholding of U.S. tax shall no longer apply. When any change
occurs in the ownership of stock as recorded on the books of the paying
corporation or in the percentage of dividends and interest included in
gross income of the paying corporation, the paying corporation shall
notify the Commissioner of Internal Revenue as soon as possible.
[[Page 79]]
(iii) Evidence of tax withheld. The rate at which U.S. tax has been
withheld from a dividend paid on or after August 11, 1968, to a French
corporation shall be shown either in writing or by appropriate stamp on
the check, draft, or other evidence of payment, or on an accompanying
statement.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.21 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.22 Dividends received by persons not entitled to reduced rate of tax.
(a) General. Article 27(1) of the convention provides that each
Contracting State shall undertake to lend assistance and support to the
other Contracting State in the collection of taxes covered by the
convention.
(b) Additional French tax to be withheld in the United States--(1)
By a nominee or representative. The recipient in the United States of
any dividend from which French tax has been withheld at the reduced rate
of 15 percent, who is a nominee or representative through whom the
dividend is received by a person who is not a resident of the United
States, shall withhold an additional amount of French tax equivalent to
the French tax which would have been withheld if the convention had not
been in effect (25 percent as of the date of approval of this Treasury
decision) minus the 15 percent which has been withheld at the source.
(2) By a fiduciary or partnership. A fiduciary or partnership with
an address in the United States which receives, otherwise than as a
nominee or representative, a dividend from sources within France from
which French tax has been withheld at the reduced rate of 15 percent,
shall withhold an additional amount of French tax from the portion of
the dividend included in the gross income from sources within France of
any beneficiary or partner, as the case may be, who is not entitled to
the reduced rate of tax in accordance with the applicable provisions of
the convention. The amount of the additional tax is to be calculated in
the same manner as under subparagraph (1) of this paragraph.
(3) Withholding additional French tax from amounts released or
refunded. If any amount of French tax is released by the withholding
agent in France with respect to a dividend received by a nominee,
representative, fiduciary, or partnership in the United States, the
recipient shall withhold from such released amount any additional amount
of French tax otherwise required to be withheld from the dividend by the
provisions of subparagraphs (1) and (2) of this paragraph, in the same
manner as if at the time of payment of the dividends French tax at the
rate of 15 percent had been withheld therefrom.
(4) Return of French tax by U.S. withholding agents. Amounts of
French tax withheld pursuant to this paragraph by withholding agents in
the United States shall be deposited in U.S. dollars with the Director,
Office of International Operations, Internal Revenue Service,
Washington, D.C. 20225, on or before the 16th day after the close of the
quarter of the calendar year in which the withholding occurs. Such
withholding agent shall also submit such appropriate forms as may be
prescribed by the Commissioner of Internal Revenue.
(c) Additional U.S. tax to be withheld in France--(1) By a nominee
or representative. The recipient in France of any dividend from which
U.S. tax has been withheld at the reduced rate of 15 percent pursuant to
Sec. 514.21(b)(1), who is a nominee or representative through whom the
dividend is received by a person who is not entitled to the reduced rate
in accordance with Sec. 514.21(a)(3)(i), shall withhold an additional
amount of U.S. tax equivalent to the U.S. tax which would have been
withheld if the convention had not been in effect (30 percent as of the
date of approval of this Treasury decision) minus the 15 percent which
has been withheld at the source.
(2) By a fiduciary or partnership. A fiduciary or partnership with
an address in France which receives, otherwise than as a nominee or
representative, a dividend from which U.S. tax has been withheld at the
reduced rate of 15 percent pursuant to Sec. 514.21(b)(1) shall withhold
an additional amount of U.S. tax from the portion of the dividend
included in the gross income from
[[Page 80]]
sources within the United States of any beneficiary or partner, as the
case may be, who is not entitled to the reduced rate of tax in
accordance with Sec. 514.21(a)(3)(i). The amount of the additional tax
is to be calculated in the same manner as under subparagraph (1) of this
paragraph.
(3) Released amounts of tax. If any amount of U.S. tax is released
pursuant to Sec. 514.28 by the withholding agent in the United States
with respect to a dividend received by a nominee, representative,
fiduciary, or partnership with an address in France, the recipient shall
withhold from such released amount any additional amount of U.S. tax,
otherwise required to be withheld from the dividend by the provisions of
subparagraphs (1) and (2) of this paragraph, in the same manner as if at
the time of payment of the dividends U.S. tax at the rate of 15 percent
has been withheld at source therefrom.
(4) Return of U.S. tax by French withholding agents. Amounts of U.S.
tax withheld pursuant to this paragraph by withholding agents in France
shall be deposited without converting the amounts into U.S. dollars,
with the Directeur General des Impots of France on or before the 16th
day after the close of the quarter of the calendar year in which the
withholding occurs. The withholding agent making the deposit shall
render therewith such appropriate French form as may be prescribed by
the Directeur General des Impots. The amounts so deposited should be
remitted by the Directeur General des Impots by draft in United States
dollars to the director, Office of International Operations, Internal
Revenue Service, Washington, D.C. 20225, and should be accompanied by
such French form as may be required to be rendered by the withholding
agent in France in connection with the deposit.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.22 was amended by removing paragraph (c), effective Jan. 1,
1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the effective date was
delayed until Jan. 1, 2000.
Sec. 514.23 Interest.
(a) Not subject to U.S. tax. Interest derived from sources within
the United States on or after August 11, 1968, by the French Government
or by an instrumentality of the French Government and which is not
subject to income tax in France is exempt from U.S. tax under the
provisions of Article 10(8). Such interest is not subject to withholding
of U.S. tax at source.
(b) Application of reduced rate--(1) In general. Except as provided
in subparagraph (2) of this paragraph, the rate of U.S. tax imposed by
the Internal Revenue Code upon interest derived from sources within the
United States on or after August 11, 1968, by a nonresident alien
individual who is a resident of France, or French corporation or person
resident in France for French tax purposes shall not exceed 10 percent
under the provisions of Article 10(2) of the convention.
(2) Definitions. As used in this paragraph, the term ``interest''
means income from Government securities, bonds, or debentures, whether
or not secured by mortgage and whether or not carrying a right to
participate in profits, and debt-claims of every kind as well as all
other income assimilated to income from money lent by the taxation law
of the United States, including interest on certain deferred payments
described in section 483 of the Internal Revenue Code and original issue
discount described in section 1232(b) of the Internal Revenue Code.
(3) Interest effectively connected with a permanent establishment.
The reduction in rate of tax provided in subparagraph (1) of this
paragraph shall not apply if the owner thereof has a permanent
establishment in the United States and the indebtedness giving rise to
the interest is effectively connected to such permanent establishment.
Such interest is subject to tax in accordance with the provisions of
Article 6 of the convention.
(c) Withholding of tax from interest--(1) Coupon bond interest--(i)
Form to use. To secure withholding of U.S. tax at the rate of 10 percent
in the case of coupon bond interest, the nonresident alien individual
who is a resident of France, or French corporation or person resident in
France for French tax purposes shall, for each issue of bonds, file Form
1001-F in duplicate when presenting the interest coupons for payment.
This form shall be signed by the owner of the interest, or by his
trustee or agent,
[[Page 81]]
and shall show the information required by paragraph (d) of Sec. 1.1461-
1 of this chapter. It shall contain a statement that at the time the
interest is derived the owner (a) if an individual, is neither a citizen
nor resident of the United States, but is a resident of France, or is a
French corporation or person resident in France for French tax purposes,
and (b) has no permanent establishment in the United States, or if the
owner does have such a permanent establishment, the indebtedness giving
rise to the interest is not effectively connected to such permanent
establishment.
(ii) Reduction in rate applicable only to owner. The reduction in
the rate of U.S. tax contemplated by Article 10(2) of the convention,
insofar as it concerns coupon bond interest, is applicable only to the
owner of the interest. The person presenting the coupon or on whose
behalf it is presented, shall, for the purpose of the reduction in tax,
be deemed to be the owner of the interest only if he is, at the time the
coupon is presented for payment, the owner of the bond from which the
coupon has been detached. If the person presenting the coupon, or on
whose behalf it is presented, is not the owner of the bond, Form 1001,
and not Form 1001-F, shall be used, and U.S. tax shall be withheld at
the statutory rate.
(iii) Disposition of Form 1001-F. The original and duplicate of Form
1001-F shall be forwarded by the withholding agent to the Director,
Office of International Operations, Internal Revenue Service,
Washington, D.C. 20225, in accordance with paragraph (b)(2) of
Sec. 1.1461-2 of this chapter, with the annual return on Form 1042. A
summary of the Form 1001 or 1001-F shall be reported on Form 1042 as
provided by instructions thereto.
(2) Other interest--(i) Letter of notification. To secure the
reduced rate of U.S. tax at source in the case of interest other than
coupon bond interest, the nonresident alien individual who is a resident
of France, or French corporation or person resident in France for French
tax purposes, shall notify the withholding agent by letter in duplicate
that the interest is taxable at the reduced rate of tax provided in
Article 10(2) of the convention. The letter of notification shall be
signed by the owner of the interest, or by his trustee or agent, shall
show the name and address of the obligor and the name and address of the
owner of the interest, and shall indicate the dates on which the taxable
years of the owner to which the letter is applicable begin and end. The
letter shall contain a statement that the owner (a) if an individual, is
neither a citizen nor a resident of the United States but is a resident
of France, or is a French corporation or other entity resident in France
for French tax purposes, and (b) does not have a permanent establishment
in the United States or, if the owner does have such a permanent
establishment, a statement that the indebtedness giving rise to the
income is not effectively connected to such permanent establishment. If
the interest is taxable at the reduced rate of tax, the letter of
notification may also authorize the release, pursuant to Sec. 514.28, of
excess tax withheld from the interest concerned.
(ii) Manner of filing letter. The letter of notification, which
shall constitute authorization for the withholding of U.S. tax at source
at the reduced rate of 10 percent, shall be filed with the withholding
agent as soon as practicable for each successive 3-calendar-year period
during which the income is paid. Once a letter has been filed in respect
of any 3-calendar-year period, no additional letter need be filed in
respect thereto unless the Commissioner of Internal Revenue notifies the
withholding agent that an additional letter shall be filed by the owner
of the interest. If, after filing a letter of notification, the taxpayer
ceases to be eligible for the exemption from U.S. tax granted by Article
10(2) of the convention, he shall promptly notify the withholding agent
by letter in duplicate. When any change occurs in the ownership of the
income as recorded on the books of the payer, the reduction in rate of
withholding of U.S. tax shall no longer apply unless the new owner of
record is entitled to such reduced rate and promptly files a letter of
notification with the withholding agent.
(iii) Disposition of letter. The original of each letter of
notification filed pursuant to this subparagraph shall be retained by
the withholding agent and
[[Page 82]]
the duplicate shall be immediately forwarded by the withholding agent to
the Director, Office of International Operations, Internal Revenue
Service, Washington, D.C. 20225.
(3) Change in circumstances. If the owner of the interest acquires a
permanent establishment in the United States after filing a letter of
notification referred to in subparagraph (2) of this paragraph, such
owner shall file a new letter of notification even though the
indebtedness giving rise to the income to which such document relates is
not effectively connected to such permanent establishment
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.23 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.24 Royalties.
(a) Exemption from U.S. tax--(1) Copyright royalties. Except as
provided in subparagraph (2) of this paragraph royalties or other
amounts paid as consideration for the use of, or for the right to use
copyrights of literary, artistic, or scientific works (including gain
from the sale or exchange of property giving rise to such royalties)
which are derived from sources within the United States on or after
August 11, 1968, by a nonresident alien individual who is a resident of
France, or by a French corporation or a person resident in France for
French tax purposes are exempt from U.S. tax under the provisions of
Article 11(3) of the convention.
(2) Copyright royalties effectively connected with a permanent
establishment. The exemption from tax provided in subparagraph (1) of
this paragraph shall not apply if the owner of such royalties, or of
gain from the sale or exchange of property giving rise to such
royalties, has a permanent establishment in the United States and the
property giving rise to such royalties or gain is effectively connected
with such permanent establishment. Such royalties are subject to tax in
accordance with the provisions of Article 6.
(3) Exemption from withholding of tax--(i) Use of letter of
notification. To avoid withholding of U.S. tax at source with respect to
copyright royalties to which this paragraph applies, the nonresident
alien who is a resident of France or French corporation or person
resident in France for French tax purposes, shall notify the withholding
agent by letter in duplicate that the royalty is exempt from U.S. tax
under Article 11(3) of the convention. The letter of notification shall
be signed by the owner of the royalty or of the gain from the sale or
exchange of property giving rise to such royalty, or by the trustee or
agent of such owner, and shall show the name and address of the owner.
The letter shall contain a statement that at the time the royalty is
derived the owner (a) if an individual, is neither a citizen nor a
resident of the United States but is a resident of France or, if a
corporation or other entity is resident in France for French tax
purposes, and (b) has no permanent establishment in the United States
or, if the owner does have such a permanent establishment, a statement
that the property or right giving rise to such royalty is not
effectively connected with such permanent establishment. If the royalty
is exempt from U.S. tax, the letter of notification may also authorize
the release, pursuant to Sec. 514.28 of excess tax withheld from the
royalty concerned.
(ii) Manner of filing letter of notification. The provisions of
Sec. 514.23(c)(2)(ii) and (iii) relating to the execution, filing, and
effective period of the letter of notification prescribed therein with
respect to interest, including its use for the release of excess tax
withheld and Sec. 514.23(c)(3) relating to change of circumstances, are
equally applicable with respect to the income falling within the scope
of this section.
(b) Reduction in rate of United States tax--(1) Industrial
royalties. Except as provided in subparagraph (3) of this paragraph, the
rate of U.S. tax imposed on royalties, derived from sources within the
United States on or after August 11, 1968, by a nonresident alien
individual who is a resident of France, or by a French corporation shall
not, under Article 11(2) of the convention, exceed 5 percent of the
gross amount paid.
(2) Definitions. As used in this paragraph, the term ``royalty''
means royalties, rentals, or other amounts (other than royalties
described in paragraph
[[Page 83]]
(a)(1) of this section) paid as consideration for the use of or the
right to use patents, designs or models, plans, secret processes or
formulae, trademarks, or other like property or rights, or for
knowledge, experience, or skill (know-how) and gains derived from the
sale or exchange of such right or property if payment is contingent, in
whole or in part, on the productivity use, or disposition of the
property or rights sold. The term ``royalty'' does not include natural
resource royalties which are subject to tax in accordance with the
provisions of Article 5 of the convention.
(3) Industrial royalties effectively connected with a permanent
establishment. The reduction in rate of tax provided in subparagraph (1)
of this paragraph shall not apply if the owner of the royalties or of
the gain from the sale or exchange of the property or right giving rise
to such royalties has a permanent establishment in the United States and
the property or right giving rise to such royalties or gain is
effectively connected with such permanent establishment. Such royalties
are subject to tax in accordance with the provisions of Article 6 of the
convention.
(4) Withholding of U.S. tax from industrial royalties. In order to
secure the reduced rate of U.S. tax at source as provided in
subparagraph (1) of this paragraph, the nonresident alien individual who
is a resident of France or French corporation or person resident in
France for French tax purposes shall notify the withholding agent by
letter in duplicate that the royalty qualifies for the reduced rate of
U.S. tax granted by Article 11(2) of the convention. The letter of
notification shall be signed by the owner of the royalty, or by the
trustee or agent of such owner, and shall show the name and address of
the owner. The provisions of subparagraph (3) of paragraph (a) of this
section relating to the form, content, execution, filing, and effective
period of the letter of notification prescribed therein with respect to
copyright royalties, including its use for the release of excess tax
withheld and relating to change of circumstances, are equally applicable
with respect to industrial royalties.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.24 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.25 Private pensions, alimony, and annuities.
(a) Exemption from U.S. tax--(1) Requirements. Any pension (other
than one paid by the United States or a political subdivision or a local
authority thereof to an individual who is a citizen of the United States
for the discharge of governmental functions), alimony, or annuity
derived from sources within the United States by a nonresident alien
individual who is a resident of France and received in a taxable year of
the recipient beginning after December 31, 1966, shall be exempt from
U.S. tax under the provisions of Article 19 of the convention.
(2) Definitions--(i) Pension. As used in this paragraph, the term
``pension'' means periodic payments made after retirement in
consideration of past employment or as compensation for injuries
received in connection with past employment. The term ``pension'' does
not include retirement pay or pensions paid by the United States or by
any State or local authority of the United States which are subject to
tax in accordance with the provisions of Article 16 of this convention.
(ii) Annuity. The term ``annuity'' means a stated sum paid
periodically at stated times during life, or during a specified number
of years, under an obligation to make the payments in return for
adequate and full consideration (other than services rendered), but not
including retirement pay or pensions paid by the United States or by any
State or territory of the United States.
(b) Exemption from withholding tax--(1) Use of letter of
notification. To avoid withholding of U.S. tax at source with respect to
pensions, alimony, or annuities which are exempt from U.S. tax in
accordance with paragraph (a) of this section, the nonresident alien
individual who is a resident of France shall notify the withholding
agent by letter in duplicate that the pension, alimony, or annuity is
exempt from U.S. tax under Article 19 of the convention. The letter of
notification shall be signed by the owner of the income, shall show the
name and address of both the payer
[[Page 84]]
and the owner of the income, and shall contain a statement that at the
time the income is received, the owner is neither a citizen nor a
resident of the United States but is a resident of France.
(2) Manner of filing letter. The provisions of Sec. 514.23(c)(2)(ii)
and (iii) relating to the execution, filing, and effective period of the
letter of notification prescribed therein with respect to interest,
including its use for the release of excess tax withheld and
Sec. 514.23(c)(3) relating to change of circumstances, are equally
applicable with respect to the income falling within the scope of this
section.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.25 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.26 Income covered by convention.
(a) Exemption from or reduction in rate of tax--(1) Request for
ruling. If a nonresident alien individual who is a resident of France or
French corporation or person resident in France for French tax purposes
claims or contemplates claiming that an item of income (including income
referred to in Secs. 514.21 through 514.25) is exempt from, or subject
to a reduced rate of, U.S. tax under the convention, such owner of the
income may request a ruling to that effect from the Commissioner of
Internal Revenue, Washington, D.C. 20224, by filing a statement setting
forth all the facts pertinent to a determination of the question.
(2) Notification of applicant. As soon as practicable after such
information is filed, the Commissioner will determine whether the income
concerned qualifies under the convention for exemption from or reduced
rate of, U.S. tax and will notify the applicant of his ruling. If income
qualifies for such benefit, this notification may also authorize the
release, pursuant to Sec. 514.28(a)(2), of excess tax withheld from the
income concerned.
(b) Exemption from, or reduction in rate of, withholding--(1)
Notification of withholding agent. If the Commissioner rules that income
received by such applicant qualifies for exemption from, or reduction in
rate of, U.S. tax under the convention, and the applicant sends a copy
of such ruling to the withholding agent, the income designated in such
ruling shall be exempt, or subject to a reduced rate of, withholding of
U.S. tax unless the Commissioner or the applicant notifies the
withholding agent that such income ceases to qualify for such benefit. A
duplicate copy of such notification shall be attached to the Form 1042S
filed by the withholding agent with respect to the income concerned.
(2) Change in circumstances. If during the period covered by the
ruling letter, any fact upon which the ruling letter is based materially
changes, the applicant shall immediately notify the withholding agent
and the Commissioner of such change.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.26 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.27 Beneficiaries of domestic estate and trust.
A nonresident alien individual who is a resident of France and a
beneficiary of a domestic estate or trust shall be entitled to the
exemption from, or reduction in rate of, United States tax granted by
Articles 9, 10, 11, 13(1)(a), and 19 of the convention with respect to
dividends, interest, royalties, and pensions, annuities, and alimony if
he otherwise satisfies the requirements for exemption or reduction
specified in the articles concerned, to the extent that (a) any amount
paid, credited, or required to be distributed by the estate or trust to
the beneficiary is deemed to consist of those items and (b) the items so
deemed to be included in such amount would, without regard to the
convention, be includible in his gross income. However, such beneficiary
is not entitled to the exemption from, or reduction in the rate of, U.S.
tax granted by such articles to the extent that the trust conduit rules
are not applicable to any payment received by the beneficiary such as,
for example, a payment made out of the income of a trust established for
the support and maintenance of a wife pursuant to a divorce decree. To
obtain the exemption from,
[[Page 85]]
or reduction in the rate of, withholding of U.S. tax where permitted by
this section, the beneficiary must, where applicable, execute and submit
to the fiduciary of the estate or trust in the United States the
appropriate letter of notification in the form prescribed in
Sec. 514.23(c) (2) and (3), modified where necessary to indicate the
type of income involved.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.27 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.28 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Tax withheld from dividends--(i)
Dividends subject to 15-percent rate. If U.S. tax has been withheld on
or after August 11, 1968, at a rate in excess of 15 percent from
dividends described in Sec. 514.21(a)(3)(i) received by a nonresident
alien individual who is a resident of France or French corporation or
person resident in France for French tax purposes whose address at the
time of payment was in France, the withholding agent shall release and
par over to the person from whom the tax was withheld an amount which is
equal to the difference between the tax so withheld and the tax required
to be withheld pursuant to Sec. 514.21(b)(1).
(ii) Dividends subject to 5-percent rate. If U.S. tax has been
withheld at a rate in excess of 5 percent on or after August 11, 1968,
from dividends which qualify for the reduced rate of 5 percent under
Sec. 514.21(a)(3)(ii), the withholding agent shall, if so authorized in
accordance with Sec. 514.21(a)(3)(iv) release and pay over to the
corporation from which the tax was withheld an amount which is equal to
the difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.21(b)(2)(i).
(2) Tax withheld from coupon bond interest--(i) Substitute ownership
certificate. If U.S. tax has been withheld at a rate in excess of 10
percent on or after August 11, 1968, from coupon bond interest described
in Sec. 514.23(c)(1), the owner of the interest shall furnish the
withholding agent a Form 1001-F clearly marked ``Substitute'' and
executed in accordance with Sec. 514.23(c). Upon receipt of such
substitute Form 1001-F the withholding agent shall release and pay over
to the person from whom the tax was withheld an amount which is equal to
the difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.23(b)(1).
(ii) Filing and disposition of substitute ownership certificate. One
substitute Form 1001-F shall be filed in duplicate with respect to each
issue of bonds and will serve with respect to that issue to replace all
Forms 1001 or 1001-F previously filed by the owner of the interest in
the calendar year in which the excess tax was withheld and with respect
to which the excess is released. Such forms shall be disposed of in
accordance with the rules of Sec. 514.23(c)(1)(iii).
(3) Tax withheld from other income covered by convention. If the
owner of the other income furnishes to the withholding agent the letter
of notification prescribed in Sec. 514.24(a)(3) or (b)(4),
Sec. 514.25(b)(1), or the authorization for release of tax prescribed in
Sec. 514.26(a)(2), and U.S. tax has been withheld at a rate in excess of
the rate provided in the convention with respect to payments of income
to which such letter of authorization is applicable, made on or after
August 11, 1968, or received in the taxable year of the owner beginning
after December 31, 1966 (whichever is applicable), the withholding agent
shall release and pay to the person from whom the tax was withheld an
amount which is equal to the tax so withheld from such income, or to the
difference between the tax so withheld and the tax required to be
withheld, as the case may be.
(b) Amounts not to be released. The provisions of this section do
not apply to any excess tax withheld at the source subsequent to the due
date for filing Form 1042.
(c) Statutory rate. As used in this paragraph, the term ``statutory
rate'' means the rate of tax (30 percent as of the date of approval of
this Treasury decision) prescribed by subchapter A of chapter 3
(relating to the withholding of tax on nonresident alien individuals and
foreign corporations) of the Internal Revenue Code as though the
convention has not come into effect.
[[Page 86]]
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.28 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.29 Refund of excess tax paid to Director of International Operations.
(a) In general. Where U.S. tax withheld at the source on items of
income covered by the convention is in excess of the tax imposed under
subtitle A (relating to the income tax) of the Internal Revenue Code, as
modified by the convention, and such withheld amounts have been paid to
the Director of International Operations, a claim by the owner of such
income for refund of any resulting overpayment may be made under section
6402 of such Code, and the regulations thereunder.
(b) Form of claim--(1) Where return previously filed. If the owner
of the income has previously filed an income tax return with the
Internal Revenue Service for the taxable year in which an overpayment
has resulted because of the application of the convention, he should
make a claim for refund of the overpayment by filing Form 843 or an
amended return.
(2) Where no return previously filed. If the owner of the income has
not previously filed an income tax return with the Internal Revenue
Service for the taxable year in which an overpayment has resulted
because of the application of the convention, he should make a claim for
refund of the overpayment by filing Form 1040NR or Form 1120-F,
whichever is applicable, showing the overpayment. Such return will serve
as a claim for refund, and it is not necessary for the taxpayer to file
Form 843.
(c) Information required. If the owner's total gross income
(including every item of capital gain subject to tax) from sources
within the United States for the taxable year in which such overpayment
resulted has not been disclosed in an income tax return filed with the
Internal Revenue Service prior to the time the claim for refund is made,
such owner shall disclose such total gross income with his claim. In the
event that securities are held in the name of a person other than the
actual or beneficial owner, the name and address of such person shall be
furnished with the claim. In addition to such other information as may
be required to establish the overpayment, there shall also be included
in such claim for refund:
(1) A statement that, at the time when the items of income were
received from which the excess tax was withheld, the owner was neither a
citizen nor a resident of the United States but was a resident of
France, a French corporation or person resident in France for French tax
purposes.
(2) If the owner's claim is based on exemption from, or reduction in
rate of, tax for dividends, interest, or royalties, a statement that the
owner does not have a permanent establishment in the United States, or,
if the owner does have such a permanent establishment, that the holding
from which such income was derived was not effectively connected with
such permanent establishment.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.29 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.30 Information furnished in ordinary course.
For provisions relating to the exchange of information under Article
30 of the convention, see paragraph (d) of Sec. 1.1461-2 of this
chapter.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.30 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.31 Return required when liability not satisfied by withholding.
For action by a nonresident alien individual who is a resident of
France or a French corporation or person resident in France for French
tax purposes in a case where such individual's or corporation's or
person's U.S. income tax liability is not satisfied by withholding of
U.S. tax at source, see paragraph (b) of Sec. 1.6012-1 of this chapter
and paragraph (b) of Sec. 1.6012-2 of this chapter.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.31 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183,
[[Page 87]]
Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Sec. 514.32 Effective date.
(a) In general. Except as provided in paragraph (b) of this section,
the provisions of this Treasury decision shall be effective with respect
to the rate of withholding tax, to amounts derived from sources within
the United States on or after August 11, 1968, and with respect to all
other taxes covered by the convention to amounts received in a taxable
year of the recipient beginning after December 31, 1966.
(b) Withholding of additional French tax. The provisions of
Sec. 514.22 shall be effective with respect to income derived from
sources within France on or after August 11, 1968.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.32 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--General Income Tax
Authority: 53 Stat. 32, 467; 26 U.S.C. 62, 3791.
Source: Treasury Decision 5499, 11 FR 2154, Mar. 2, 1946, as amended
by T.D. 6273, 22 FR 9529, Nov. 28, 1957, unless otherwise noted.
Redesignated at 25 FR 14022, Dec. 31, 1960.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Subpart--General Income Tax, consisting of Secs. 514.101 through
514.117, was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183,
Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
Regulations Effective Jan. 1, 1945
Sec. 514.101 Introductory.
The tax convention and protocol between the United States and France
(referred to in this subpart as the convention) proclaimed by the
President of the United States on January 5, 1945, and effective January
1, 1945, provide in part as follows:
Title I--Double Taxation
Article 1
The taxes referred to in this Convention are:
(a) In the case of the United States of America: The federal income
taxes, including surtaxes and excess-profits taxes;
(b) In the case of France:
(1) The real estate tax;
(2) The industrial and commercial profits tax;
(3) The annual tax on undistributed profits;
(4) The agricultural profits tax;
(5) The tax on salaries, allowances and emoluments, wages, pensions
and annuities;
(6) The professional profits tax;
(7) The tax on income from securities and movable capital;
(8) The general income tax.
Article 2
Income from real property, including income from agricultural
undertakings, shall be taxable only in the State in which such real
property is situated.
Article 3
An enterprise of one of the contracting States is not subject to
taxation by the other contracting State in respect of its industrial and
commercial profits except in respect of such profits allocable to its
permanent establishment in the latter State.
No account shall be taken, in determining the tax in one of the
contracting States, of the purchase of merchandise effected therein by
an enterprise of the other State for the purpose of supplying
establishments maintained by such enterprise in the latter State.
The competent authorities of the two contracting States may lay down
rules by agreement for the apportionment of industrial and commercial
profits.
The term ``industrial and commercial profits'' shall not include the
following:
(a) Income from real property;
(b) Income from mortgages, from public funds, securities (including
mortgage bonds), loans, deposits and current accounts;
(c) Dividends and other income from shares in a corporation;
(d) Rentals or royalties arising from leasing personal property or
from any interest in such property, including rentals or royalties for
the use of, or for the privilege of using, patents, copyrights, secret
processes and formulae, good-will, trade marks, trade brands, franchises
and other like property;
(e) Profit or loss from the sale or exchange of capital assets.
Subject to the provisions of this Convention the income referred to
in paragraphs (a), (b), (c), (d) and (e) shall be taxed separately or
together with industrial and commercial profits in accordance with the
laws of the contracting States.
Article 4
American enterprises having permanent establishments in France are
required to submit to the French fiscal administration
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the same declarations and the same justifications, with respect to such
establishments, as French enterprises.
The French fiscal administration has the right, within the
provisions of its national legislation and subject to the measures of
appeal provided in such legislation, to make such corrections in the
declaration of profits realized in France as may be necessary to show
the exact amount of such profits.
The same principle applies mutatis mutandis to French enterprises
having permanent establishments in the United States.
Article 5
When an American enterprise, by reason of its participation in the
management or capital of a French enterprise, makes or imposes on the
latter, in their commercial or financial relations, conditions different
from those which would be made with a third enterprise, any profits
which should normally have appeared in the balance sheet of the French
enterprise, but which have been in this manner, diverted to the American
enterprise, are, subject to the measures of appeal applicable in the
case of the tax on industrial and commercial profits, incorporated in
the taxable profits of the French enterprise.
The same principle applies mutatis mutandis, in the event that
profits are diverted from an American enterprise to a French enterprise.
Article 6
Income derived by navigation enterprises of one of the contracting
States from the operation of ships documented under the laws of that
State shall continue to benefit in the other State by the reciprocal tax
exemptions accorded by the exchange of notes of June 11 and July 8, 1927
between the United States of America and France.
Income which an enterprise of one of the contracting States derives
from the operation of aircraft registered in that State shall be exempt
from taxation in the other State.
Article 7
Royalties from real property or in respect of the operation of
mines, quarries or other natural resources shall be taxable only in the
contracting State in which such property, mines, quarries or other
natural resources are situated.
Royalties derived from within one of the contracting States by a
resident or by a corporation or other entity of the other contracting
State as consideration for the right to use copyrights, patents, secret
processes and formulae, trademarks and other analogous rights shall be
exempt from taxation in the former State, provided such resident,
corporation or other entity does not have a permanent establishment
there.
Article 8
Wages, salaries and similar compensation and pensions paid by one of
the contracting States or by a political subdivision thereof to
individuals residing in the other State shall be exempt from taxation in
the latter State.
Private pensions and life annuities derived from within one of the
contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
Article 9
Income from labor or personal services shall be taxable only in the
State in which the taxpayer carries on his personal activity.
This provision does not apply to the income referred to in Article
8.
Article 10
Income from the exercise of a liberal profession shall be taxable
only in the State in which the professional activity is exercised.
There is the exercise of a liberal profession in one of the two
contracting States only when the professional activity has a fixed
center in that country.
Article 11
Gains derived in one of the contracting States from the sale or
exchange of stocks, securities or commodities by a resident or a
corporation or other entity of the other contracting State shall be
exempt from taxation in the former State, provided such resident or
corporation or other entity has no permanent establishment in the former
State.
Article 12
Students from one of the contracting States residing in the other
contracting State exclusively for the purpose of study shall not be
taxable by the latter State in respect of remittances received from
within the former State for the purpose of their maintenance or studies.
Article 13
In the calculation of taxes established in one of the contracting
States on the use of property or increment of property of an enterprise
of the other State, account shall be taken only of that portion of the
capital situated or employed and allocable to a permanent establishment
within the former State.
The foregoing provision shall apply to the French ``patent'' tax and
the United States capital stock tax even though these two taxes have not
been referred to in Article 1 of the present Convention.
In the application of the present Article navigation enterprises of
one of the contracting States, enjoying in the other State
[[Page 89]]
the benefits of Article 6 of the present Convention, shall not be
considered as having a permanent establishment in the latter State
insofar as shipping activities are concerned.
Article 14
It is agreed that double taxation shall be avoided in the following
manner:
A. As regards the United State of America. Notwithstanding any other
provision of this Convention, the United States of America in
determining the income and excess-profits taxes, including all surtaxes,
of its citizens, or residents, or corporations, may include in the basis
upon which such taxes are imposed, all items of income taxable under the
Revenue Laws of the United States of America, as though this Convention
had not come into effect. The United States of America shall, however,
deduct from the taxes thus computed the amount of French income tax
paid. This deduction shall be made in accordance with the benefits and
limitations of Section 131 of the United States Internal Revenue Code
relating to credit for foreign taxes.
B. As regards France--(a) Schedular taxes. Income from securities,
debts and trusts having its source in the United States of America shall
be subject in France to the tax on income from securities; but this tax
shall be reduced by the amount of the tax already paid in the United
States of America on the same income. In consideration of the fiscal
regime to which the legislation of the United States of America subjects
the income of nonresident aliens and foreign corporations or other
entities, the deduction of the tax paid in the United States of America
shall be effected in a lump sum through a reduction of 12 in the rate of
the tax established by the French law.
The income other than that indicated in the preceding paragraph
shall not be subject to any schedular tax in France when, according to
this Convention, it is taxable in the United States of America.
(b) General tax on revenue. Notwithstanding any other provision of
the present Convention, the general income tax can be determined
according to all the elements of taxable income as imposed by French
fiscal legislation.
However, the provisions of the first paragraph of Article 114 of the
French Code on direct taxation relative to the taxation of aliens
domiciled or resident in France shall continue to be applied.
Article 15
In derogation of Article 3 of the Decree of December 6, 1872,
American corporations which maintain in France permanent establishments
shall be liable to the tax on income from securities on three-fourths of
the profits actually derived from such establishments, the industrial
and commercial profits being determined in accordance with Articles 3
and 4 of this Convention.
The remaining one-fourth shall, in all cases, be taken as the basis
of the annual tax on undistributed profits applicable to the same
corporations.
Article 16
An American corporation shall not be subject to the obligations
prescribed by Article 3 of the Decree of December 6, 1872, by reason of
any participation in the management or in the capital of, or any other
relations with, a French corporation. In such case, the tax on income
from securities continues to be levied, in conformity with French
legislation, on the dividends, interest and all other distributions made
by the French enterprise; but it is moreover collectible, if the
occasion arises, and subject to the measures of appeal applicable in the
case of the tax on income from securities, with respect to the profits
which the American corporation derives from the French corporation under
the conditions prescribed in Article 5.
Article 17
The American corporations subject to the provisions of Article 3 of
the Decree of December 6, 1872 who were not placed under the special
regime established by Articles 5 and 6 of the Convention for the
avoidance of double income taxation between the United States of America
and France, signed April 27, 1932, may, during a new period of six
months from the date of the entry into force of the present Convention,
exercise with reference to past years, the option provided in those two
articles under the conditions which they prescribe.
Moreover, the American corporations contemplated in the third
paragraph of Article 10 of the Convention of April 27, 1932, may be
admitted to benefit from the provisions of that paragraph, when the tax
has not yet been paid, if the latter was not found to be payable, prior
to May 1, 1930, by a definitive judicial decision or if such decision
has been the subject of an appeal in cassation.
Article 18
Any United States income tax liability remaining unpaid as at the
effective date of this Convention for years beginning prior to January
1, 1936 of any individual resident of France (other than a citizen of
the United States of America) or of a French corporation may be adjusted
by the Commissioner of Internal Revenue of the United States of America,
on the basis of the provisions of the United States Revenue Act of 1936.
However, no adjustment will be made more than two years subsequent to
the effective date of this Convention unless the taxpayer files a
request with the Commissioner of Internal Revenue prior to such date.
[[Page 90]]
Article 19
Notwithstanding any other provision of this Convention, in order to
avoid double taxation on public servants, employees of one of the
contracting States being citizens of that State and remunerated by it,
who have been received by the other State to perform services in such
State shall be exempt in their principal place of residence from direct
and personal taxes whether national, State or local.
Such employees who own real property in the State in which they
perform services shall not benefit from the above exemptions with
respect to the taxes levied on such real property. Employees who engage
in any private gainful occupation in such State shall not be entitled to
any exemption under this Article.
Title II--Fiscal Assistance
Article 20
With a view to the more effective imposition of the taxes to which
the present Convention relates, the contracting States undertake, on
condition of reciprocity, to furnish information of a fiscal nature
which the authorities of each State concerned have at their disposal, or
are in a position to obtain under their own laws, that may be of use to
the authorities of the other State in the assessment of the said taxes.
Such information shall be exchanged between the competent
authorities of the contracting States in the ordinary course or on
request.
Article 21
In accordance with the preceding Article, the competent authorities
of the United States of America will transmit to the competent
authorities of France, as regards any person, corporation or other
entity (other than a citizen, corporation or other entity of the United
States of America) having an address in France and deriving from sources
within the United States of America rents, dividends, interest,
royalties, income from trusts, wages, salaries, pensions, annuities, or
other fixed or determinable periodical income, the name and address of
such person, corporation or other entity as well as the amount of such
income.
The competent authorities of France will transmit to the competent
authorities of the United States of America, as regards any person,
corporation or other entity (other than a citizen, corporation or other
entity of France) having an address in the United States of America and
deriving from sources within France rents, dividends, interest,
royalties, income from trusts, wages, salaries, pensions, annuities, or
other fixed or determinable periodical income, the name and address of
such person, corporation or other entity as well as the amount of such
income.
The information relating to each year will be transmitted as soon as
possible after December 31.
Article 22
The competent authorities of each of the contracting States shall be
entitled to obtain, through diplomatic channels, from the competent
authorities of the other contracting States, except with respect to
citizens, corporations or other entities of the State to which
application is made, particulars in concrete cases necessary for the
establishment of the taxes to which the present Convention relates.
However, the competent authorities of each State shall not be
prevented from transmitting to the competent authorities of the other
State information relating to their own nationals (citizens,
corporations or other entities) if they deem it opportune for the
prevention of fiscal evasion.
Article 23
Each contracting State undertakes to lend assistance and support in
the collection of the taxes to which the present Convention relates,
together with interest, costs, and additions to the taxes and fines not
being of a penal character according to the laws of the State requested,
in the cases where the taxes are definitively due according to the laws
of the State making the application.
In the case of an application for enforcement of taxes, revenue
claims of each of the contracting States which have been finally
determined shall be accepted for enforcement by the State to which
application is made and collected in that State in accordance with the
laws applicable to the enforcement and collection of its own taxes.
The application shall be accompanied by such documents as are
required by the laws of the State making the application, to establish
that the taxes have been finally determined.
If the revenue claim has not been finally determined, the State to
which application is made may, at the request of the State making the
application, take such measures of conservancy as are authorized by the
laws of the former State for the enforcement of its own taxes.
The assistance provided for in this Article shall not be accorded
with respect to the citizens, corporations or other entities of the
State to which application is made.
Article 24
In no case shall the provisions of Article 22 relating to
particulars in concrete cases, or of Article 23 relating to mutual
assistance in the collection of taxes, be construed so as to impose upon
either of the contracting States
[[Page 91]]
the obligation to carry out administrative measures at variance with the
regulations and practice of either contracting State, or to supply
particulars which are not procurable under the law of the State to which
application is made, or that of the State making application.
The State to which application is made for information or assistance
shall comply as soon as possible with the request addressed to it.
Nevertheless, such State may refuse to comply with the request for
reasons of public policy or if compliance would involve violation of a
business, industrial or trade secret. In such case it shall inform, as
soon as possible, the State making the application.
Article 25
Any taxpayer who shows proof that the action of the revenue
authorities of the contracting States has resulted in double taxation in
his case in respect of any of the taxes to which the present Convention
relates, shall be entitled to lodge a claim with the State of which he
is a citizen or, if the taxpayer is a corporation or other entity, with
the State in which it is created or organized. Should the claim be
upheld, the competent authority of such State may come to an agreement
with the competent authority of the other State with a view to equitable
avoidance of the double taxation in question.
Article 26
The competent authorities of the two contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of this Convention. With respect to the provisions of this
Convention relating to exchange of information and mutual assistance in
the collection of taxes, such authorities may, by common agreement,
prescribe rules concerning matters of procedure, forms of application
and replies thereto, rates of conversion of currencies, transfer of sums
collected, minimum amounts subject to collection, payment of costs of
collection, and related matters.
Title III--General Provisions
Article 27
The present Convention shall be ratified, in the case of the United
States of America by the President, by and with the advice and consent
of the Senate, and in the case of France, by the President of the French
Republic with the consent of the Parliament.
This Convention shall become effective on the first day of January
following the exchange of the instruments of ratification.
The Convention shall remain in force for a period of five years and
indefinitely thereafter but may be terminated by either contracting
State at the end of the five-year period or at any time thereafter,
provided six months' prior notice of termination has been given, the
termination to become effective on the first day of January following
the expiration of the six-month period.
Upon the coming into effect of this Convention, the Convention for
the avoidance of double income taxation between the United States of
America and France, signed April 27, 1932 shall terminate.
Done at Paris, in duplicate, in the English and French languages,
this 25th day of July, 1939.
[seal]
William C. Bullitt
[seal]
Georges Bonnet
Protocol
At the moment of signing the present Convention for the avoidance of
double taxation and the establishment of rules of reciprocal
administrative assistance in the case of income and other taxes, the
undersigned Plenipotentiaries have agreed that the following provisions
shall form an integral part of the Convention:
I. The present Convention is concluded with reference to American
and French law in force on the day of its signature.
Accordingly, if these laws are appreciably modified the competent
authorities of the two States will consult together.
II. The income from real property referred to in Article 2 of the
present Convention shall include profits from the sale or exchange of
the said property, but shall not include interest on mortgages or
obligations secured by the said property.
III. As used in this Convention:
(a) The term ``permanent establishment'' includes branches, mines
and oil wells, plantations, factories, workshops, stores, purchasing and
selling and other offices, agencies, warehouses, and other fixed places
of business but does not include a subsidiary corporation.
When an enterprise of one of the contracting States carries on
business in the other State through an employee or agent, established
there, who has general authority to negotiate and conclude contracts or
has a stock of merchandise from which he regularly fills orders which he
receives, this enterprise shall be deemed to have a permanent
establishment in the latter State. But the fact that an enterprise of
one of the contracting States has business dealings in the other State
through a bona fide commission agent or broker shall not be held to mean
that such enterprise has a permanent establishment in the latter State.
Insurance enterprises shall be considered as having a permanent
establishment in one of the States as soon as they receive premiums from
or insure risks in the territory of that State.
[[Page 92]]
(b) The term ``enterprise'' includes every form of undertaking
whether carried on by an individual, partnership, corporation, or any
other entity.
(c) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``French
enterprise''.
(d) The term ``United States enterprise'' means an enterprise
carried on in the United States of America by a resident of the United
States of America or by a United States corporation or other entity.
The term ``United States corporation or other entity'' means a
partnership, corporation or other entity created or organized in the
United States of America or under the law of the United States of
America or of any State or Territory of the United States of America.
(e) The term ``French enterprise'' is defined in the same manner,
mutatis mutandis, as the term ``United States enterprise''.
IV. The term ``life annuities'' referred to in Article 8 of this
Convention means a stated sum payable periodically at stated times
during life, or during a specified number of years to the person who has
paid the premiums or a gross sum for such an obligation.
V. Citizens and corporations or other entities of one of the
contracting States within the other contracting State shall not be
subjected as regards the taxes referred to in the present Convention, to
the payment of higher taxes than are imposed upon the citizens or
corporations or other entities of such latter State.
VI. The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit, allowance,
or other advantage accorded by the laws of one of the contracting States
in the determination of the tax imposed by such State.
VII. Documents and information contained therein, transmitted under
the provisions of this Convention by one of the contracting States to
the other contracting State shall not be published, revealed or
disclosed to any person except to the extent permitted under the laws of
the latter State with respect to similar documents or information.
VIII. As used in this Convention the terms ``competent authority''
or ``competent authorities'' means, in the case of the United States of
America, the Secretary of the Treasury and in the case of France, the
Minister of Finance.
IX. The term ``United States of America'' as used in this Convention
in a geographic sense includes only the States, the Territories of
Alaska and Hawaii, and the District of Columbia.
X. The term ``France'', when used in a geographic sense, indicates
continental France, exclusive of Algeria and the Colonies.
XI. Should any difficulty or doubt arise as to the interpretation or
application of the present Convention, or its relationship to
Conventions between one of the contracting States and any other State,
the competent authorities of the contracting States may settle the
question by mutual agreement.
Done in duplicate at Paris, this 25th day of July, 1939.
William C. Bullitt
Georges Bonnet
Sec. 514.102 Applicable provisions of the Internal Revenue Code.
(a) The Internal Revenue Code provides in part as follows:
Sec. 22. Gross income. * * *
(b) Exclusions from gross income. The following items shall not be
included in gross income and shall be exempt from taxation under this
chapter:
* * * * *
(7) Income exempt under treaty.--Income of any kind, to the extent
required by any treaty obligation of the United States;
* * * * *
Sec. 62. Rules and regulations.
The Commissioner, with the approval of the Secretary, shall
prescribe and publish all needful rules and regulations for the
enforcement of this chapter.
(b) Pursuant to section 62 of the Internal Revenue Code, Article 26
of the convention, and other provisions of the internal revenue laws,
Secs. 514.103-514.117 are hereby prescribed and all regulations
inconsistent herewith are modified accordingly.
Sec. 514.103 Scope of the convention.
(a) The primary purposes of the convention are to avoid double
taxation upon certain classes of income, and to inaugurate fiscal
cooperation between the two States with respect to reciprocal disclosure
of information and to the collection of the taxes enumerated in Article
1 of the convention.
(b) The specific classes of income from sources within the United
States exempt under the convention from United States income taxes are:
(1) Industrial and commercial profits of a French enterprise having
no permanent establishment in the United States (Article 3);
[[Page 93]]
(2) Income derived by a French enterprise from the operation of
ships documented under the laws of, or aircraft registered in, France
(Article 6);
(3) Royalties derived by a nonresident alien who is a resident of
France or by a French corporation or other French entity (having no
permanent establishment within the United States), for the right to use
copyrights, patents, secret processes and formulae, trademarks and other
analogous rights (Article 7);
(4) Compensation and pensions paid by France or by a political
subdivision of France to individuals (other than citizens of the United
States) for services rendered to France whether within or without the
United States (Article 8);
(5) Private pensions and life annuities derived from within the
United States and paid to nonresident alien individuals (whether or not
such individuals are citizens of France) residing in France during the
year in which such amounts are paid (Article 8);
(6) Earned income of a doctor, lawyer, engineer, or other member of
a liberal profession who is a nonresident alien individual and is a
resident of France and does not maintain within the United States an
office, establishment, installation, or other fixed center related to
the practice of his profession within the United States (Article 10);
(7) Gains from sources within the United States arising from the
sale or exchange of stocks, securities, or commodities by a resident of
France (other than a citizen of the United States) or a French
corporation or other French entity unless such resident, corporation, or
other entity has, at any time during the taxable year in which such sale
takes place, a permanent establishment within the United States (Article
11).
(c) Except as expressly provided by the convention, the tax
liability of nonresident aliens who are residents of France or of French
corporations or other French entities is determined in accordance with
the provisions of the laws and of the regulations thereunder applicable
generally to nonresident alien individuals and to foreign corporations.
(d) The convention shall not be construed to affect the liability to
United States income taxation of citizens of France who are resident in
the United States except to the extent that such individuals are
entitled to the benefits of Articles 8, 14A, and 19 and to paragraph V
of the protocol of the convention. The tax liability of a United States
citizen or a resident of the United States, a member of a French
partnership carrying on a French enterprise is not affected by Article 3
of the convention. Such citizen or resident is subject to United States
income tax upon his distributive share of the net income of such
partnership even though the other members of such partnership are not
subject to tax upon their share of the partnership's industrial and
commercial profits from sources within the United States where the
enterprise has no permanent establishment within the United States. The
convention shall not be construed to affect the liability to United
States income taxation of citizens of the United States or residents of
the United States who are not citizens of France.
(e) The convention has no reference to rates of taxation imposed by
the respective States but is concerned with the exempting of income
arising in one of the contracting States when such income is derived
from sources within such contracting State by a resident or corporation
or other entity of the other contracting State and meets the conditions
upon which such exemption depends as prescribed in the convention. This
subpart is not concerned with the provisions of Articles 14B, 15, 16,
and 17 of the convention since such articles affect only the allowance
against the taxes imposed by France of income and excess profits taxes
paid to the United States or the application of French revenue laws and
decrees.
Sec. 514.104 Definitions.
(a) Any word or term used in this subpart which is defined in the
convention shall be given the definition assigned to such word or term
in such convention. Any word or term used in this subpart which is not
defined in the convention but is defined in the Internal Revenue Code
shall be given the definition contained therein.
[[Page 94]]
(b) As used in this subpart:
(1) The term ``permanent establishment'' includes branches, mines
and oil wells, plantations, factories, workshops, stores, purchasing and
selling and other offices, agencies, warehouses and other fixed places
of business. A French parent corporation having a domestic or foreign
subsidiary corporation in the United States shall not be deemed by
reason of such fact to have a permanent establishment in the United
States. The mere fact that a foreign subsidiary corporation of a French
parent corporation has a permanent establishment in the United States
does not mean that such French parent corporation has a permanent
establishment in the United States. The fact that a French enterprise
carries on business dealings in the United States through a bona fide
commission agent or broker shall not be held to mean that such
enterprise has a permanent establishment in the United States. If,
however, a French enterprise carries on business in the United States
through an employee or agent established there who has general authority
to negotiate and conclude contracts or has a stock of merchandise from
which he regularly fills orders, such enterprise shall be deemed to have
a permanent establishment in the United States. Thus, if a French
enterprise has a full time employee or full time agent who for such
enterprise maintains in the United States a stock of merchandise from
which orders are filled, such enterprise has a permanent establishment
in the United States even though such employee or agent has no general
authority to negotiate and conclude contracts on behalf of such
enterprise. However, the mere fact that a commission agent or broker
through whom a French enterprise carries on business in the United
States maintains a small stock of goods in the United States from which
occasional orders are filled shall not be construed as meaning that such
enterprise has a permanent establishment in the United States. The mere
fact that salesmen, employees of a French enterprise, promote the sale
of its products in the United States does not mean that such enterprise
has a permanent establishment therein. However, a French insurance
enterprise which insures risks within the United States or receives
premiums from sources within the United States is deemed to have a
permanent establishment within the United States.
(2) The term ``enterprise'' means any commercial or industrial
undertaking, whether conducted by an individual, partnership,
corporation, or other entity. It includes such activities as
manufacturing, merchandising, mining, banking, and insurance. It does
not include the operation of, or the trading in, real property located
in the United States. It does not include the rendition of personal
services. Hence, a nonresident alien individual who is a resident of
France, rendering personal services within the United States is not,
merely by reason of such services, engaged in an enterprise within the
meaning of the convention, and his liability to United States income tax
is unaffected by Article 3 of the Convention.
(3) The term ``French enterprise'' means an enterprise carried on in
France by a nonresident alien individual resident of France or by a
French corporation or other French entity. The term ``corporation or
other entity'' means a partnership, corporation, or other entity created
or organized in France or under the laws of France. For example, an
enterprise carried on wholly outside France by a French corporation is
not a French enterprise within the meaning of the convention. Whether a
French entity is a corporation, a partnership, or a trust is to be
determined in accordance with the principles of existing law relating to
the taxation of nonresident aliens and foreign corporations.
(4) The term ``industrial and commercial profits'' means the profits
arising from the industrial, mercantile, manufacturing, or like
activities of a French enterprise as defined in this section. Such term
does not include income from real property, interest, dividends, rentals
and royalties, gains from the sale or exchange of capital assets, or
compensation for labor or personal service. Such enumerated items of
income are not governed by the provisions of Article 3 but, to the
extent covered by the convention, are subject
[[Page 95]]
to the rules elsewhere set forth therein and in this subpart.
(5) The term ``Secretary'' means the Secretary of the Treasury and
the term ``Minister'' means the Minister of Finance of France.
Sec. 514.105 Scope of convention with respect to determination of ``industrial and commercial profits'' of a nonresident alien individual resident of France,
or of a French corporation or other entity carrying on a
French enterprise in the United States.
(a) General. Article 3 of the convention adopts the principle that
an enterprise of one of the contracting States shall not be taxable in
the other contracting State in respect of its industrial and commercial
profits unless it has a permanent establishment in the latter State.
Hence, a French enterprise is subject to United States tax upon its
industrial and commercial profits from sources within the United States
only if it has a permanent establishment within the United States. From
the standpoint of Federal income taxation, the article has application
only to a French enterprise and to the industrial and commercial income
thereof from sources within the United States. It has no application,
for example, to compensation for labor or personal services performed in
the United States, to income derived from real property located in the
United States or any interest therein, including rentals and royalties,
to gains from the sale or other disposition of such real property or
interest, to dividends and interest, to rentals and royalties arising
from leasing personal property or any interest in such property,
including rentals and royalties for the use of patents, copyrights,
secret processes and formulae, good will, trade marks, trade brands,
franchises, and other like property, or to profits from the sale or
exchange of capital assets. Such enumerated items of income, to the
extent covered by the convention, are treated separately elsewhere in
this subpart and are subject to the rules laid down in the sections
having specific references to the respective items of income.
(b) No United States permanent establishment. A nonresident alien
individual who is a resident of France, or a French corporation or other
French entity carrying on a French enterprise, but having no permanent
establishment in the United States, is not subject to United States
income tax upon industrial and commercial profits from sources within
the United States. For example, if such French corporation sells stock
in trade, such as wines or perfumery or cheese, through a bona fide
commission agent or broker in the United States, the resulting profit
is, under the terms of Article 3 of the convention, exempt from United
States income tax. Such French corporation, however, remains subject to
tax upon all other items of income from sources within the United States
which are not expressly exempted from such tax under the convention.
(c) United States permanent establishment. A nonresident alien
individual who is a resident of France, or a French corporation or other
entity, carrying on a French enterprise having a permanent establishment
in the United States is subject to tax upon his or its industrial and
commercial profits from sources within the United States. In the
determination of the income of such resident of France or French
corporation or other entity from sources within the United States, all
industrial and commercial profits from such sources shall be deemed to
be allocable to the permanent establishment within the United States.
Hence, for example, if a French enterprise, having a permanent
establishment in the United States, sells directly in the United States
through a commission agent or broker therein goods produced in France,
the resulting profits derived from United States sources from the latter
transactions are allocable to such permanent establishment. The net
income from sources within the United States, including the industrial
and commercial profits, shall be determined in accordance with the
provisions of section 119 of the Internal Revenue Code and the
regulations thereunder. In determining industrial and commercial profits
no account shall be taken of the mere purchase of merchandise effected
in the
[[Page 96]]
United States by such French enterprise. A nonresident alien who is a
resident of France, a member of a French partnership having a permanent
establishment within the United States, shall by reason of such fact be
deemed to have a permanent establishment within the United States.
Sec. 514.106 Control of a domestic enterprise by a French enterprise.
Article 5 of the convention provides that if a French enterprise by
reason of its control of a domestic business imposes conditions
different from those which would result from normal business relations
between independent enterprises, the accounts between the enterprises
will be adjusted so as to ascertain the true net income of the domestic
enterprise. The purpose is to place the controlled domestic enterprise
on a tax parity with an uncontrolled domestic enterprise by determining,
according to the standard of an uncontrolled enterprise, the true net
income from the property and business of the controlled enterprise. The
convention contemplates that if the accounting records do not truly
reflect the net income from the property and business of such domestic
enterprise the Commissioner of Internal Revenue shall intervene and, by
making such distributions, apportionments, or allocations as he may deem
necessary of gross income or deductions of any item or element affecting
net income as between such domestic enterprise and the French enterprise
by which it is controlled or directed, determine the true net income of
the domestic enterprise. The provisions of Sec. 29.45-1 of Regulations
111 (26 CFR 1949 ed. Supps. 29.45-1) [and Sec. 39.45-1 of Regulations
118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)], shall, in so far as
applicable, be followed in the determination of the net income of the
domestic business.
Sec. 514.107 Income from operation of ships or aircraft.
The income derived by a French enterprise from the operation of
ships documented under the laws of France, or of aircraft registered in
France, is under Article 6 of the convention exempt from United States
income tax. However, the profits derived by such enterprise from the
operation of ships or aircraft, if any, not so documented or registered
are treated as are industrial and commercial profits generally. See
Article 3 of the convention and Sec. 514.105.
Sec. 514.108 Income from real property, including mineral royalties.
Income of whatever nature derived by a nonresident alien individual
who is a resident of France, or by a French corporation or other French
entity from real property situated in the United States, including gains
derived from the sale of such property and royalties in respect of the
operation of mines, quarries, or other natural resources situated in the
United States, is not exempted from taxation by the convention. The
treatment of such income for taxation purposes is governed by those
provisions of the Internal Revenue Code applicable generally to the
taxation of nonresident aliens and foreign corporations.
Sec. 514.110 Government wages, salaries, and similar compensation, pensions, and life annuities.
(a) Under Article 8 of the convention, wages, salaries, and similar
compensation, and pensions paid by France, or by a political subdivision
thereof, to individuals residing in the United States are exempt from
Federal income tax. However, under the provisions of Article 14A of the
convention, such exemption shall not be construed as applying to
recipients of such income who are citizens of the United States or alien
residents who are not citizens of France.
(b) Under the provisions of the same article of the convention
private pensions and life annuities derived from sources within the
United States by nonresident alien individuals who are residents of
France are exempt from Federal income tax. Such items of income are
therefore not subject to the withholding provisions of the Internal
Revenue Code. See paragraph IV of the protocol to the convention as to
what constitutes life annuities. See, also, Sec. 514.109 1
with respect to patent and
[[Page 97]]
copyright royalties as to the requirements necessary to avoid
withholding of the tax at the source, which requirements are also
applicable for the purposes of this section.
---------------------------------------------------------------------------
1 Section 514.109 (formerly Sec. 7.418) was revoked by
T.D. 6273, 22 F.R. 9529, Nov. 28, 1957.
---------------------------------------------------------------------------
Sec. 514.111 Compensation for labor or personal services.
(a) General. In general and subject to the provisions of Article 8
and Article 10 of the convention and paragraph (b) of this section,
compensation for labor or personal services derived from sources within
the United States by a nonresident alien who is a resident of France, is
subject to tax in accordance with the provisions of the Internal Revenue
Code applicable generally to nonresident aliens. The provisions of
Article 9 do not disturb either the provisions of section 119(a)(3) of
the Internal Revenue Code, relating to source of compensation for labor
or personal services, or the provisions of the Internal Revenue Code
relating to the taxation of such compensation in the hands of a
nonresident individual who is a resident of France.
(b) Professional earnings. Article 10 of the convention provides a
special rule of taxation with respect to professional fees constituting
income derived from sources within the United States by a resident of
France who is a nonresident alien. Under such rule, such nonresident
alien rendering professional services, such as medical, legal,
engineering, and scientific services, is not subject to United States
tax with respect to such compensation unless he has an office or other
fixed place situated in the United States during the taxable year. Thus,
such alien present in the United States during any part of the taxable
year and rendering professional advice as a medical doctor or as a
lawyer or as an engineer, is not subject to Federal income tax on fees
derived by him in such taxable year by reason of such services unless he
maintains at some time during such taxable year an office or other fixed
place in the United States incident to the practice of his profession.
The exemption applies regardless of the length of time spent within the
United States during the taxable year and regardless of the amount of
the fees or professional charges resulting to such alien from such
services. As to when an alien is regarded as a resident of the United
States and hence outside the scope of the exemption, see Sec. 29.211-2
of Regulations 111 (26 CFR 1949 ed. Supps. 29.211-2) [and Sec. 39.211-2
of Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)].
Sec. 514.112 Stocks, securities, and commodities.
Under Article 11 of the convention, gains derived from the sale or
exchange within the United States of stocks, securities, or commodities
(if of a kind customarily dealt in on an organized commodity exchange)
by a nonresident alien individual resident in France, or by a French
corporation or other French entity, is exempt from Federal income tax
unless such individual, corporation, or other entity has a permanent
establishment in the United States. If, however, a permanent
establishment is maintained in the United States, such gains are not so
exempt even though the sales or exchanges resulting in such gains were
carried on directly from the home office of the taxpayer and not through
the permanent establishment in the United States. As to what constitutes
a permanent establishment, see Sec. 514.104(b)(1).
Sec. 514.113 Remittances to students.
Under Article 12 of the convention, nonresident alien individuals
who are residents of France and who are temporarily residing in the
United States for the purposes of studying or for acquiring business
experience, are exempt from Federal income tax upon amounts representing
remittances from France for the purposes of their maintenance and
studies.
Sec. 514.114 Credit against United States tax liability for income tax paid to France.
For the purpose of avoidance of double taxation, Article 14A of the
convention provides that, on the part of the United States, there shall
be allowed against the United States income and excess profits tax
liabilities a credit for any income, war-profits or excess profits taxes
paid to France by United
[[Page 98]]
States citizens or domestic corporations. Such principle also applies in
the case of a citizen of France residing in the United States. Such
credit, however, is subject to the limitations provided in section 131
of the Internal Revenue Code (relating to the credit for foreign taxes)
and section 729 of such Code (relating to laws applicable). See
Secs. 29.131-1 to 29.131-10 of Regulations 111 (26 CFR 1949 ed. Supps.
29.131-1 to 29.131-10), [Secs. 39.131(a)-1 to 39.131(j)-1 of Regulations
118 (26 CFR, Rev. 1953, Parts 1-79, and Supps.)], and Secs. 35.729-1 to
35.729-3 Regulations 112 (26 CFR 1938 ed. Supps. 35.729-1 to 35.729-3).
Sec. 514.115 Adjustment of tax liability of residents of France and French corporations.
Article 18 of the convention confers upon the Commissioner authority
to adjust under the Revenue Act of 1936 the tax liability for taxable
years beginning prior to January 1, 1936, of nonresident alien residents
of France, and French corporations, in any case in which such tax
liability remained unpaid on January 1, 1945. Such provision, however,
will not apply in any case unless:
(a) The Commissioner is satisfied that the additional income tax
involved did not arise by reason of fraud with intent to evade the tax
on the part of the taxpayer concerned; and
(b) The taxpayer files, prior to January 1, 1947, with the
Commissioner a sworn statement showing for each year involved and for
such other years as the Commissioner may require, (1) by items and
classes of income the amounts of interest, dividends, rents, salaries,
wages, premiums, annuities, compensations, remunerations, emoluments, or
other fixed or determinable annual or periodical income, gains, profits,
and income derived from sources within the United States; (2) the
business transactions, if any, carried on in the United States by or in
behalf of the taxpayer during each of such years; and (3) such further
information as the Commissioner may require in the particular case.
Sec. 514.116 Reciprocal administrative assistance.
(a) General. (1) By Article 20 of the convention, the United States
and France adopt the principle of exchange of information for use in the
determination and assessment of the taxes with which the convention is
concerned. Pursuant to such principle, every United States withholding
agent shall make and file with the collector, in duplicate, an
information return on Form 1042C for the calendar year 1945 and each
subsequent calendar year in addition to withholding return Form 1042,
with respect to dividends, interest, royalties, rents, salaries, wages,
pensions, and annuities, or other fixed or determinable annual or
periodical income paid to persons whose addresses are in France whether
or not tax has been withheld with respect to such income. There shall be
reported on Form 1042C not only such items of income listed on Form
1042, but also such items of interest listed on monthly returns, Form
1012, and there shall be shown on such return items of income paid to
such addressees even though such items are exempt from tax under the
convention, as, for example, certain royalties.
(2) The information and correspondence relating to exchange of
information may be transmitted direct by the Secretary to the Minister.
(b) Information to be furnished in due course. In accordance with
the provisions of Article 21 of the convention, the Secretary shall
forward to the Minister as soon as practicable after the close of the
calendar year 1945 and of each calendar year thereafter during which the
convention is in effect, the names and addresses of all persons whose
addresses are within France and who derive from sources within the
United States, dividends, interest, rents, royalties, salaries, wages,
pensions, and annuities, or other fixed or determinable annual or
periodical profits and income showing the amounts of such profits and
income in the case of each addressee. For these purposes, the
transmission to the Minister of information return, Form 1042C, as
provided in paragraph (a) of this section for the
[[Page 99]]
calendar year 1945 and subsequent calendar years shall constitute a
compliance with the provisions of Article 21 of the convention and of
this subpart.
(c) Information in specific cases. Under the provisions of Article
22 of the convention, the Secretary shall furnish (if request therefor
is made by the Minister through diplomatic channels) to the Minister
such information, relative to the tax liability to France of any person
(other than a citizen of the United States or a United States domestic
corporation or other United States domestic entity), as is available to,
or may be obtained by, the Secretary under the revenue laws of the
United States.
Sec. 514.117 Reciprocal regulations.
Article 26 of the convention provides that the United States and
France may prescribe (a) regulations for the purpose of carrying the
convention into effect within the respective countries and (b)
reciprocal rules relating to the exchange of information.
PART 515 [RESERVED]
PART 516--AUSTRIA--Table of Contents
Subpart--Withholding of Tax
Sec.
516.1 Introductory.
516.2 Dividends; general rules.
516.3 Dividends received by addressee not actual owner.
516.4 Interest.
516.5 Patent and copyright royalties and film rentals.
516.6 Private pensions and private life annuities.
516.7 Sources of income.
516.8 Beneficiaries of an estate or trust.
516.9 Release of excess tax withheld at source.
516.10 Refund of excess tax withheld during 1957.
516.11 Information to be furnished in ordinary course.
516.12 Taxable years beginning in 1956 and ending in 1957.
Authority: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805.
Source: Treasury Decision 6322, 23 FR 7841, Oct. 10, 1958; 25 FR
14022, Dec. 31, 1960, unless otherwise noted.
Effective Date Note: By T.D. 8732, 62 FR 53498, Oct. 14, 1997, part
516 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--Withholding of Tax
Sec. 516.1 Introductory.
(a) Pertinent provisions. The income tax convention between the
United States and the Republic of Austria, signed on October 25, 1956,
referred to in this part as the convention, provides in part as follows,
effective on and after January 1, 1957:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America: The federal income
taxes, including surtaxes.
(b) In the case of the Republic of Austria: The Einkommensteuer
(income tax), the Koerperschaftsteuer (corporation tax) and the Beitrag
vom Einkommen zur Foerderung des Wohnbaues und fuer Zwecke des
Familienlastenausgleiches (housing reconstruction and family allowance
contribution).
(2) The present Convention shall also apply to any other income or
profits tax of a substantially similar character which may be imposed by
one of the contracting States after the date of signature of the present
Convention.
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense means the States, the Territories
of Alaska and Hawaii, and the District of Columbia;
(b) The term ``Austria'' means the Republic of Austria;
(c) The term ``enterprise of one of the contracting States'' means,
as the case may be, a United States enterprise or an Austrian
enterprise;
(d) The term ``United States enterprise'' means an industrial or
commercial enterprise or undertaking carried on in the United States by
a natural person (including an individual in his individual capacity or
as a member of a partnership) resident in the United States or by a
United States corporation or other entity; the term ``United States
corporation or other entity'' means a corporation or other entity
created or organized under the law of the United States or of any State
or Territory of the United States;
(e) The term ``Austrian enterprise'' means an industrial or
commercial enterprise or
[[Page 100]]
undertaking carried on in Austria by a natural person (including an
individual in his individual capacity or as a member of a partnership)
resident in Austria or by an Austrian corporation; the term ``Austrian
corporation'' means a corporation or other entity created or organized
under the law of Austria;
(f) The term ``permanent establishment'' means a branch, office,
factory, workshop, a warehouse, a merchandising establishment, a mine,
oil well or other place of exploitation of the ground or soil, a
construction or assembly project or the like, the duration of which
exceeds or will likely exceed twelve months, or other fixed place of
business; but does neither include the casual and temporary use of mere
storage facilities, nor an agent or employee unless the agent or
employee has full power for the negotiation and concluding of contracts
on behalf of an enterprise and also habitually exercises this power in
that other State or has a stock of merchandise belonging to the
enterprise of the other State from which he regularly fills orders on
behalf of the enterprise. An enterprise of one of the contracting States
shall not be deemed to have a permanent establishment in the other State
merely because it carries on business dealings in such other State
through a commission agent, broker, custodian or other independent
agent, acting in the ordinary course of his business as such. The fact
that an enterprise of one of the contracting States maintains in the
other State a fixed place of business exclusively for the purchase of
goods and merchandise shall not of itself constitute such fixed place of
business a permanent establishment of the enterprise. The maintenance
within the territory of one of the contracting States by an enterprise
of the other contracting State of a warehouse for convenience of
delivery and not for purposes of display shall not of itself constitute
a permanent establishment within that territory. The fact that a
corporation of one contracting State has a subsidiary corporation which
is a corporation of the other State or which is engaged in trade or
business in the other State shall not of itself constitute that
subsidiary corporation a permanent establishment of its parent
corporation;
(g) The term ``competent authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury; and in the case of Austria, the Federal
Ministry of Finance.
(2) For the purpose of the present Convention:
(a) Dividends paid by a corporation of one of the contracting States
shall be treated as income from sources within such State.
(b) Interest paid by one of the contracting States, including any
local government thereof, or by an enterprise of one of the contracting
States not having a permanent establishment in the other contracting
State shall be treated as income from sources within the former State.
(c) Income from real property (including gains derived from the sale
or exchange of such property, but not including interest from mortgages
or bonds secured by real property) and royalties in respect of the
operation of mines, oil wells, or other natural resources shall be
treated as income derived from the contracting State in which such real
property, mines, oil wells or other natural resources are situated.
(d) Compensation for labor or personal services (including the
practice of liberal professions) shall be treated as income from sources
within the contracting State where are rendered the services for which
such compensation is paid.
(e) Royalties for using, or for the right to use, in one of the
contracting States, patents, copyrights, designs, trademarks and like
property shall be treated as income from sources within such State.
(3) In the application of the provisions of this Convention by one
of the contracting States any term not otherwise defined shall, unless
the context otherwise requires, have the meaning which the term has
under its own tax laws. For the purposes of this Convention the term
``residence'' in Austria shall include the customary place of abode
therein.
* * * * *
Article VI
The rate of tax imposed by one of the contracting States upon
dividends received from sources within such State by a resident or
corporation or other entity of the other contracting State not having a
permanent establishment in the former State shall not exceed 50 percent
of the statutory rate of tax imposed on such dividends by such former
State but such rate of tax shall not exceed 5 percent if the shareholder
is a corporation controlling, directly or indirectly, at least 95
percent of the entire voting power in the corporation paying the
dividend, and if not more than 25 percent of the gross income of such
paying corporation is derived from interest and dividends, other than
interest and dividends received from its own subsidiary corporations.
Such reduction of the rate to five percent shall not apply if the
relationship of the two corporations has been arranged or is maintained
primarily with the intention of securing such reduced rate.
Article VII
Interest received from sources within one of the contracting States,
on bonds, notes, debentures, securities or on any other form of
indebtedness (exclusive of interest on
[[Page 101]]
debts secured by mortgages) by a resident or corporation or other entity
of the other contracting State shall, in an amount not exceeding fair
and reasonable consideration on indebtedness, be exempt from tax by the
former State if such resident, corporation or other entity has no
permanent establishment in such former State.
Article VIII
(1) Royalties and other amounts received as consideration for the
right to use literary, musical or other copyrights, artistic and
scientific works, patents, designs, plans, secret processes and
formulae, trademarks, and other like property and rights (including
rentals and like payments for the use of industrial, commercial or
scientific equipment but not including motion picture film rentals) by a
resident or a corporation or other entity of one of the contracting
States from sources within the other contracting State shall, in an
amount not exceeding fair and reasonable consideration for such right to
use, be exempt from taxation by such other State if the recipient has no
permanent establishment situated in such other State.
(2) The rate of tax imposed by one of the contracting States upon
motion picture film rentals received from sources within such
contracting State by a resident or corporation or other entity of the
other contracting State not having a permanent establishment in the
former State shall not exceed 50 percent of the statutory rate of tax
imposed on such rentals but in any case shall not exceed 10 percent of
the amount of such rentals.
Article IX
(1) Income from real property (including gains derived from the sale
or exchange of such property and interest on mortgages secured by such
property) and royalties in respect of the operation of mines, oil wells
or other natural resources shall be taxable in the contracting State in
which such property, mines, oil wells or other natural resources are
situated.
(2) Where a resident or corporation or other entity of one of the
contracting States derives any income coming within the scope of
paragraph (1) from property within the other contracting State, the
recipient may, for any taxable year, elect to be subject to the tax of
such other contracting State on a net basis as if such resident,
corporation or other entity were engaged in trade or business within
such other State through a permanent establishment therein.
* * * * *
Article XI
* * * * *
(2) Private pensions and private life annuities which are from
sources within one of the contracting States and are paid to individuals
residing in the other contracting State shall be exempt from taxation by
the former State.
(3) The term ``pensions'', as used in this Article, means periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
(4) The term ``life annuities'', as used in this Article, means a
stated sum payable periodically at stated times during life, or during a
specified number of years, under an obligation to make the payments in
return for adequate and full consideration in money or money's worth.
* * * * *
Article XIV
(1) Dividends and interest paid by an Austrian corporation (other
than a United States corporation) shall be exempt from United States tax
where the recipient is a nonresident alien or a foreign corporation.
* * * * *
Article XVI
(1) The competent authorities of the contracting States shall
exchange such information (being information available under the
respective taxation laws of the contracting States) as is necessary for
carrying out the provisions of the present Convention or for the
prevention of fraud or the like in relation to the taxes which are the
subject of the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any persons other than
those concerned with the assessment and collection of the taxes which
are the subject of the present Convention. No information shall be
exchanged which would disclose any trade, business, industrial or
professional secret or any trade process.
(2) In no case shall the provisions of this Article be construed so
as to impose upon either of the contracting States the obligation to
carry out administrative measures at variance with the regulations and
practice of either contracting State or which would be contrary to its
sovereignty, security or public policy or to supply particulars which
are not procurable under its own legislation or that of the State making
application.
Article XVII
* * * * *
(2) Should any difficulty or doubt arise as to the interpretation or
application of the present Convention or its relationship to Conventions
of the contracting States with
[[Page 102]]
third States the competent authorities of the contracting States may
settle the question by mutual agreement.
Article XVIII
(1) The provisions of this Convention shall not be construed to deny
or affect in any manner the right of diplomatic and consular officers to
other or additional exemptions now enjoyed or which may hereafter be
granted to such officers.
(2) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance now or hereafter granted by the laws of one of the contracting
States in the determination of the tax imposed by such State.
* * * * *
Article XIX
(1) The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
Convention within the respective States.
(2) The competent authorities of the two contracting States may
communicate with each other directly for the purpose of giving effect to
the provisions of this Convention.
Article XX
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Vienna as soon as possible. The
Convention shall have effect on and after the first day of January of
the calendar year in which such exchange takes place.
(2) The present Convention shall remain in force indefinitely, but
may be terminated by either of the contracting States, provided that at
least six months' prior notice of termination has been given through
diplomatic channels. In such event, the present Convention shall cease
to be effective for the taxable years beginning on or after the first
day of January next following the expiration of the six-month period.
(b) Meaning of terms. As used in Secs. 516.1 to 516.12, any term
defined in the convention shall have the meaning so asigned to it; any
term not so defined shall, unless the context otherwise requires, have
the meaning which such term has under the internal revenue laws of the
United States.
Sec. 516.2 Dividends; general rules.
(a) Paid by an Austrian corporation. Dividends paid on or after
January 1, 1957, by an Austrian corporation which is not a United States
corporation are exempt from United States tax under the provisions of
Article XIV (1) of the convention if the recipient is a nonresident
alien or a foreign corporation.
(b) 50 percent of statutory rate--(1) In general. Article VI of the
convention provides that the rate of United States tax imposed upon
dividends received from sources within the United States on or after
January 1, 1957, by a nonresident alien individual who is a resident of
Austria, or by an Austrian corporation or other entity, shall not exceed
50 percent of the statutory rate of tax imposed on such dividends by the
United States if such alien, corporation, or other entity has not had a
permanent establishment in the United States at any time during the
taxable year in which such dividends are received. This subparagraph
does not apply to dividends falling within the scope of paragraph (a) or
(c) of this section.
(2) Personal services. If a nonresident alien individual who is a
resident of Austria performs personal services within the United States
during the taxable year, but has at no time during such year a permanent
establishment within the United States, he is entitled to the reduced
rate of tax on dividends prescribed by subparagraph (1) of this
paragraph, even though under the provisions of section 871(c) of the
Internal Revenue Code of 1954 he has engaged in trade or business within
the United States during such year by reason of his having performed
personal services therein.
(c) Dividends paid by a related corporation--(1) Rate of 5 percent.
Under the provisions of Article VI of the convention, dividends received
from sources within the United States on or after January 1, 1957, by an
Austrian corporation which controls, directly or indirectly, at the time
the dividend is paid, 95 percent or more of the entire voting power in
the corporation paying the dividend are subject to United States tax at
a rate not in excess of 5 percent if (i) not more than 25 percent of the
gross income of the paying corporation for the 3-year period immediately
preceding the taxable year in which the dividend is paid consists of
dividends and interest (other than dividends and interest received by
such
[[Page 103]]
paying corporation from its own subsidiary corporations, if any), (ii)
the relationship between the paying corporation and the Austrian
corporation has not been arranged or maintained primarily with the
intention of securing the reduced rate of 5 percent, and (iii) the
Austrian corporation at no time during the taxable year in which such
dividends are received has had a permanent establishment within the
United States. This subparagraph does not apply to dividends falling
within the scope of paragraph (a) of this section.
(2) Information to be filed with Commissioner. Any corporation
(hereinafter referred to as the claimant) which claims or contemplates
claiming that dividends paid or to be paid by it are subject to a rate
of United States tax not in excess of 5 percent shall file the following
information with the Commissioner of Internal Revenue as soon as
practicable: (i) the date and place of its organization; (ii) the number
of outstanding shares of stock of the claimant having voting power and
the voting power thereof; (iii) the person or persons beneficially
owning such stock of the claimant and their relationship to the Austrian
corporation; (iv) the amounts by years (for the 3-year period
immediately preceding the taxable year in which the dividend is paid) of
the gross income of the claimant, of the interest and dividends included
in such gross income, and of the interest and dividends received by the
claimant from its own subsidiary corporations, if any; and (v) the
relationship between the claimant and the Austrian corporation receiving
the dividend.
(3) Notification by Commissioner. As soon as practicable after such
information is filed, the Commissioner will determine whether the
dividends concerned qualify under Article VI of the convention for a
rate of tax not in excess of 5 percent and will notify the claimant of
his determination. If the dividends do qualify for such reduced rate,
this notification may also authorize the release, pursuant to
Sec. 516.9(a)(3), of excess tax withheld from the dividends concerned.
(d) Withholding of United States tax from dividends--(1) Exempt from
withholding. No withholding of United States tax is required in the case
of dividends paid by an Austrian corporation which, in accordance with
paragraph (a) of this section, are exempt from United States tax.
(2) 50 percent of statutory rate--(i) In general. Withholding of tax
at source on or after January 1, 1958, in the case of dividends (other
than dividends falling within the scope of subparagraph (1) or (3) of
this paragraph) received from sources within the United States by a
nonresident alien or by a foreign corporation or other entity, whose
address is in Austria, shall, to the extent withholding of United States
tax is required, be at the rate of 50 percent of the statutory rate in
every case except that in which, prior to the date of payment of such
dividends, the Commissioner of Internal Revenue has notified the
withholding agent that the reduced rate of withholding shall not apply.
(ii) Effect of address in Austria. For the purposes of this
subparagraph, every nonresident alien whose address is in Austria shall
be deemed by United States withholding agents to be a nonresident alien
individual who is a resident of Austria not having a permanent
establishment within the United States; and every foreign corporation or
other entity whose address is in Austria shall be deemed by such
withholding agents to be an Austrian corporation or other entity not
having a permanent establishment within the United States.
(iii) Reduced rate applicable to owner only. This subparagraph is
based on the assumption that the payee of the dividend is the actual
owner of the capital stock from which the dividend is derived. As to
action by a recipient who is not the owner, see Sec. 516.3.
(iv) Statutory rate. As used in this subparagraph, the term
``statutory rate'' means the rate (30 percent as of the date of approval
of this Treasury decision) prescribed with respect to dividends by
chapter 3 of the Internal Revenue Code of 1954 as though the convention
had not come into effect.
(v) Nonresident alien. The term ``nonresident alien'', as used in
this subparagraph, includes nonresident alien individuals, fiduciaries,
and partnerships.
[[Page 104]]
(3) Rate of 5 percent. If, in accordance with paragraph (c)(3) of
this section, the Commissioner of Internal Revenue has notified the
claimant corporation that the dividends qualify under Article VI of the
convention for a rate of tax not in excess of 5 percent, the reduced
withholding rate of 5 percent, to the extent withholding of United
States tax is required, shall apply on or after January 1, 1958, to any
dividends subsequently paid by such corporation and received by the
Austrian corporation, unless (i) the stock ownership of the claimant
corporation materially changes, (ii) the character of the income of the
claimant corporation materially changes, or (iii) the Commissioner
determines that the relationship between the two corporations concerned
is being maintained primarily with the intention of securing the reduced
rate of United States tax. In such instance, if such change in stock
ownership or character of income occurs, the claimant corporation shall
promptly notify the Commissioner of the then existing facts with respect
thereto. The continued application of the rate not in excess of 5
percent is also dependent upon the continued fulfillment of paragraph
(c)(1)(iii) of this section.
(4) Evidence of tax withheld. The rate at which United States tax
has been withheld from any dividend paid at any time after the
expiration of the thirtieth day after the date on which Secs. 516.1 to
516.12 are published in the Federal Register to any person whose address
is in Austria at the time the dividend is paid shall be shown either in
writing or by appropriate stamp on the check, draft, or other evidence
of payment, or on an accompanying statement.
Sec. 516.3 Dividends received by addressee not actual owner.
(a) Additional tax to be withheld--(1) Nominee or representative. If
the recipient in Austria of any dividend from which tax has been
withheld at a reduced rate pursuant to Sec. 516.2(d)(2) is a nominee or
representative through whom the dividend is received by a person other
than one described in Sec. 516.2(b), such nominee or representative
shall withhold an additional amount of United States tax equivalent to
the United States tax which would have been withheld if the convention
had not been in effect (30 percent as of the date of approval of
Secs. 516.1 to 516.12) minus the amount which has been withheld at the
source.
(2) Fiduciary or partnership. If a fiduciary or a partnership with
an address in Austria receives, otherwise than as a nominee or
representative, a dividend from which United States tax has been
withheld at a reduced rate pursuant to Sec. 516.2(d)(2), such fiduciary
or partnership shall withhold an additional amount of United States tax
from the portion of the dividend included in the gross income from
sources within the United States of any beneficiary or partner, as the
case may be, who is not entitled to the reduced rate of tax in
accordance with Sec. 516.2(b). The amount of the additional tax is to be
calculated in the same manner as under subparagraph (1) of this
paragraph.
(3) Released amounts of tax. If any amount of United States tax is
released pursuant to Sec. 516.9(a)(2) by the withholding agent in the
United States with respect to a dividend paid to such a person (nominee,
representative, fiduciary, or partnership) with an address in Austria,
the latter shall withhold from such released amount any additional
amount of United States tax, otherwise required to be withheld from the
dividend by the provisions of subparagraphs (1) and (2) of this
paragraph, in the same manner as if at the time of payment of the
dividend United States tax at the reduced rate prescribed by
Sec. 516.2(d)(2) had been withheld at source from such dividend.
(b) Returns filed by Austrian withholding agents. The amounts
withheld pursuant to paragraph (a) of this section by any withholding
agent in Austria shall be deposited, without converting the amounts into
United States dollars, with the Austrian Federal Ministry of Finance on
or before the 15th day after the close of the quarter of the calendar
year in which the withholding in Austria occurs. The withholding agent
making the deposit shall render therewith such appropriate Austrian form
as may be prescribed by the Federal Ministry of Finance. The amounts so
deposited should be remitted by the
[[Page 105]]
Federal Ministry of Finance by draft in United States dollars, on or
before the end of the calendar month in which the deposit is made, to
the Director of International Operations, Internal Revenue Service,
Washington, D.C., U.S.A. The remittance should be accompanied by such
Austrian forms as may be required to be rendered by the withholding
agent in Austria in connection with the deposit.
Sec. 516.4 Interest.
(a) Paid by Austrian corporation. Interest paid on or after January
1, 1957, by an Austrian corporation which is not a United States
corporation is exempt from United States tax under the provisions of
Article XIV(1) of the convention if the recipient is a nonresident alien
or a foreign corporation. Such exempt interest is not subject to the
withholding of United States tax at source.
(b) Other interest. Interest on bonds, notes, debentures,
securities, or on any other form of indebtedness, including interest on
obligations of the United States and its instrumentalities but not
including interest on debts secured by mortgages, which is received from
sources within the United States on or after January 1, 1957, by a
nonresident alien individual who is a resident of Austria, or by an
Austrian corporation or other entity, is exempt, in an amount not
exceeding a fair and reasonable consideration on the indebtedness, from
United States tax under the provisions of Article VII of the convention
if such alien, corporation, or other entity at no time during the
taxable year in which such interest is received has a permanent
establishment in the United States. This paragraph does not apply to the
interest which is exempt from United States tax in accordance with
paragraph (a) of this section.
(c) Personal services. If a nonresident alien individual who is a
resident of Austria performs personal services within the United States
during the taxable year, but has at no time during such year a permanent
establishment in the United States, he is entitled to the interest
exemption prescribed by paragraph (b) of this section even though under
the provisions of section 871(c) of the Internal Revenue Code of 1954 he
has engaged in trade or business within the United States during such
year by reason of his having performed personal services therein.
(d) Exemption from withholding of United States tax--(1) Coupon bond
interest--(i) Form to use. To avoid withholding of United States tax at
source on or after January 1, 1958, in the case of coupon bond interest
to which paragraph (b) of this section applies, the nonresident alien
individual who is a resident of Austria, or the Austrian corporation or
other entity, shall, for each issue of bonds, file Form 1001-A in
duplicate when presenting the interest coupons for payment. This form
shall be signed by the owner of the interest, or by his trustee or
agent, and shall show the information required by Sec. 1.1461-1(d) of
this chapter. It shall contain a statement that the owner (a) is a
resident of Austria, or is an Austrian corporation or other entity, and
(b) has no permanent establishment in the United States.
(ii) Exemption applicable only to owner. The exemption from United
States tax contemplated by Article VII of the convention, insofar as it
concerns coupon bond interest, is applicable only to the owner of the
interest. The person presenting the coupon, or on whose behalf it is
presented, shall, for the purpose of the exemption from United States
tax, be deemed to be the owner of the interest only if he is, at the
time the coupon is presented for payment, the owner of the bond from
which the coupon has been detached. If the person presenting the coupon,
or on whose behalf it is presented, is not the owner of the bond, Form
1001, and not Form 1001-A, shall be executed.
(iii) Disposition of form. The original and duplicate of Form 1001-A
shall be forwarded by the withholding agent to the Director of
International Operations, Internal Revenue Service, Washington 25, D.C.,
in accordance with Sec. 1.1461-2(b)(2) of this chapter.
(2) Interest on noncoupon bonds--(i) Notification by letter. To
avoid withholding of United States tax at source on or after January 1,
1958, in the case of interest (other than coupon bond interest) to which
paragraph (b) of this section applies, the nonresident alien individual
who is a resident of Austria,
[[Page 106]]
or the Austrian corporation or other entity, shall notify the
withholding agent by letter in duplicate that the interest is exempt
from United States tax under the provisions of Article VII of the
convention. The letter of notification shall be signed by the owner of
the interest, or by his trustee or agent, and shall show the name and
address of the obligor and the name and address of the owner of the
interest. It shall contain a statement (a) that the owner is neither a
citizen nor a resident of the United States but is a resident of
Austria, or, in the case of a corporation or other entity, that the
owner is an Austrian corporation or other entity, and (b) that the owner
has at no time during the current taxable year had a permanent
establishment in the United States.
(ii) Use of letter for release of excess tax. If the letter is also
to be used as authorization for the release, pursuant to
Sec. 516.9(a)(5), of excess tax withheld from such interest, it shall
also contain a statement (a) that, at the time when the interest was
received from which the excess tax was withheld, the owner was neither a
citizen nor a resident of the United States but was a resident of
Austria, or, in the case of a corporation or other entity, the owner was
an Austrian corporation or other entity, and (b) that the owner at no
time during the taxable year in which such interest was received had a
permanent establishment in the United States.
(iii) Manner of filing letter. The letter of notification, which
shall constitute authorization for the payment of the interest without
withholding of United States tax at source, shall be filed with the
withholding agent for each successive 3-calendar-year period during
which the interest is paid. For this purpose, the first such period
shall commence with the beginning of the calendar year in which the
interest is first paid on or after January 1, 1958. Each letter filed
with any withholding agent shall be filed not later than 20 days
preceding the date of the first payment within each successive period,
or, if that is not possible because of special circumstances, as soon as
possible after such first payment. Once a letter has been filed in
respect of any 3-calendar-year period, no additional letter need be
filed in respect thereto unless the Commissioner of Internal Revenue
notifies the withholding agent that an additional letter shall be filed
by the taxpayer. If, after filing a letter of notification, the taxpayer
ceases to be eligible for the exemption from United States tax granted
by Article VII of the convention, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of the interest as recorded on the books of the payer, the
exemption from withholding of United States tax shall no longer apply
unless the new owner of record is entitled to and does properly file a
letter of notification with the withholding agent.
(iv) Disposition of letter. Each letter of notification, or the
duplicate thereof, shall be immediately forwarded by the withholding
agent to the Director of International Operations, Internal Revenue
Service, Washington 25, D.C.
(3) Reasonableness of consideration. For purposes of this paragraph,
the withholding agent may, unless he has information to the contrary,
presume that the interest represents a fair and reasonable consideration
on the indebtedness involved.
Sec. 516.5 Patent and copyright royalties and film rentals.
(a) Items exempt from tax--(1) In general. Royalties and other
amounts received from sources within the United States on or after
January 1, 1957, by a nonresident alien individual who is a resident of
Austria or by an Austrian corporation or other entity, as consideration
for the right to use literary, musical or other copyrights, artistic and
scientific works, patents, designs, plans, secret processes and
formulae, trademarks, and other like property and rights (including
rentals and like payments for the use of industrial, commercial, or
scientific equipment but not including motion picture film rentals) are,
in an amount not exceeding a fair and reasonable consideration for such
right, exempt from United States tax under the provisions of Article
VIII(1) of the convention if such alien, corporation, or other entity
has not had a permanent establishment in the United States at any time
during
[[Page 107]]
the taxable year in which such items are received.
(2) Exemption from withholding of United States tax--(i)
Notification by letter. To avoid withholding of United States tax at
source on or after January 1, 1958, in the case of the items of income
to which this paragraph applies, the nonresident alien individual who is
a resident of Austria, or the Austrian corporation or other entity,
shall notify the withholding agent by letter in duplicate that the
income is exempt from United States tax under the provisions of Article
VIII(1) of the convention.
(ii) Manner of filing letter. The provisions of Sec. 516.4(d)(2)
relating to the execution, filing, effective period, and disposition of
the letter of notification prescribed therein, including its use for the
release of excess tax withheld, are equally applicable with respect to
the income falling within the scope of this paragraph.
(iii) Reasonableness of consideration. For purposes of this
subparagraph, the withholding agent may, unless he has information to
the contrary, presume that the royalty or other like amount represents a
fair and reasonable consideration for the right involved.
(b) Motion picture film rentals--(1) Reduced rate. Under Article
VIII(2) of the convention, the rate of United States tax imposed upon
motion picture film rentals received from sources within the United
States on or after January 1, 1957, by a nonresident alien individual
who is a resident of Austria, or by an Austrian corporation or other
entity, shall not exceed the lesser of (i) 50 percent of the statutory
rate of tax imposed on such rentals by the United States or (ii) 10
percent of the gross amount of such rentals, if such alien, corporation,
or other entity at no time during the taxable year in which such rentals
are received has a permanent establishment in the United States.
(2) Reduction in rate of withholding of United States tax--(i)
Notification by letter. To secure withholding of United States tax at
source on or after January 1, 1958, at the reduced rate (10 percent, as
of the date of approval of Secs. 516.1 to 516.12, of the gross amount of
the rentals) in the case of the motion picture film rentals to which
this paragraph applies, the nonresident alien individual who is a
resident of Austria, or the Austrian corporation or other entity, shall
notify the withholding agent by letter in duplicate that the rentals are
subject to United States tax at the reduced rate under the provisions of
Article VIII(2) of the convention.
(ii) Manner of filing letter. The provisions of Sec. 516.4(d)(2)
relating to the execution, filing, effective period, and disposition of
the letter of notification prescribed therein, including its use for the
release of excess tax withheld, are equally applicable with respect to
the rentals falling within the scope of this paragraph except that the
release of excess tax withheld from such rentals shall be made in
accordance with Sec. 516.9(a)(6).
Sec. 516.6 Private pensions and private life annuities.
(a) Exemption from tax. Private pensions and private life annuities
which are from sources within the United States and are paid on or after
January 1, 1957, to a nonresident alien individual who is a resident of
Austria are exempt from United States tax under the provisions of
Article XI (2) of the convention.
(b) Exemption from withholding of United States tax--(1)
Notification by letter. To avoid withholding of United States tax at
source on or after January 1, 1958, in the case of the items of income
to which this section applies, the nonresident alien individual who is a
resident of Austria shall notify the withholding agent by letter in
duplicate that the income is exempt from United States tax under the
provisions of Article XI (2) of the convention. The letter of
notification shall be signed by the owner of the income, shall show the
name and address of both the payer and the owner of the income, and
shall contain a statement that the owner, an individual, is neither a
citizen nor a resident of the United States but is a resident of
Austria.
(2) Use of letter for release of tax. If the letter is also to be
used as authorization for the release, pursuant to Sec. 516.9(a)(5), of
excess tax withheld from such items of income, it shall also contain a
statement that the owner was,
[[Page 108]]
at the time when the income was paid from which the excess tax was
withheld, neither a citizen nor a resident of the United States but was
a resident of Austria.
(3) Manner of filing letter. The letter of notification shall
constitute authorization for the payment of such items of income without
withholding of United States tax at source unless the Commissioner of
Internal Revenue subsequently notifies the withholding agent that the
tax shall be withheld with respect to payments of such items of income
made after receipt of such notice. If, after filing a letter of
notification, the owner of the income ceases to be eligible for the
exemption from United States tax granted by the convention in respect to
such income, he shall promptly notify the withholding agent by letter in
duplicate. When any change occurs in the ownership of the income as
recorded on the books of the payer, the exemption from withholding of
United States tax shall no longer apply unless the new owner of record
is entitled to and does properly file a letter of notification with the
withholding agent.
(4) Disposition of letter. Each letter of notification, or the
duplicate thereof, shall be immediately forwarded by the withholding
agent to the Director of International Operations, Internal Revenue
Service, Washington, D.C.
(c) Definitions. As used in this section, the term ``pensions''
means periodic payments made in consideration for services rendered or
by way of compensation for injuries received, and the term ``life
annuities'' means a stated sum payable periodically at stated times
during life, or during a specified number of years, under an obligation
to make the payments in return for adequate and full consideration in
money or money's worth. Neither term includes retired pay or pensions
paid by the United States or by any State or Territory of the United
States.
Sec. 516.7 Sources of income.
For determining the sources of income for purposes of Secs. 516.1 to
516.12 see sections 861 to 864, inclusive, of the Internal Revenue Code
of 1954 and Article II (2) of the convention.
Sec. 516.8 Beneficiaries of an estate or trust.
(a) Entitled to benefit of convention. If he otherwise satisfies the
requirements of the respective articles concerned, a nonresident alien
who is a beneficiary of an estate or trust shall be entitled to the
exemption from, or reduction in the rate of, United States tax granted
by Articles VI, VII, VIII, and XIV of the convention with respect to
dividends, interest, and copyright royalties and other like amounts, to
the extent that (1) any amount paid, credited, or required to be
distributed by such estate or trust to such beneficiary is deemed to
consist of such items, and (2) such items would, without regard to the
convention, be includible in his gross income.
(b) Withholding of United States tax. In order to be entitled in
such instance to the exemption from, or reduction in rate of,
withholding of United States tax, the beneficiary must otherwise satisfy
such requirements and shall, where applicable, execute and submit to the
fiduciary of the estate or trust in the United States the appropriate
letter of notification prescribed in Secs. 516.4(d)(2), 516.5(a)(2) and
(b)(2).
(c) Amounts otherwise includible in gross income of beneficiary. For
the determination of amounts which, without regard to the convention,
are includible in the gross income of the beneficiary, see subchapter J
of chapter 1 of the Internal Revenue Code of 1954, and the regulations
thereunder (Secs. 1.641-1 to 1.692-1 of this chapter).
Sec. 516.9 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Dividends and interest paid by
Austrian corporation. If United States tax at the statutory rate has
been withheld on or after January 1, 1958, from dividends and interest
paid by an Austrian corporation (other than a United States corporation)
to a recipient who is a nonresident alien or a foreign corporation, the
withholding agent shall release and pay over to the person from whom the
tax was withheld an amount which is equal to the tax so withheld.
(2) Dividends subject to 50 percent of statutory rate. If United
States tax at the statutory rate has been withheld
[[Page 109]]
on or after January 1, 1958, from dividends described in Sec. 516.2(b)
and received from sources within the United States by a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) or by a foreign corporation or other entity, whose address
at the time of payment was in Austria, the withholding agent shall
release and pay over to the person from whom the tax was withheld an
amount which is equal to the difference between the tax so withheld and
the tax required to be withheld pursuant to Sec. 516.2(d)(2).
(3) Dividends subject to 5 percent rate. If United States tax at the
statutory rate has been withheld on or after January 1, 1958, from
dividends which qualify under Sec. 516.2(c)(1) for a rate of tax not in
excess of 5 percent, the withholding agent shall, if so authorized in
accordance with Sec. 516.2(c)(3), release and pay over to the
corporation from which the tax was withheld an amount which is equal to
the difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 516.2(d)(3).
(4) Coupon bond interest--(i) Substitute form. In the case of every
taxpayer who furnishes to the withholding agent Form 1001-A clearly
marked ``Substitute'' and executed in accordance with
Sec. 516.4(d)(1)(i), where United States tax has been withheld at the
statutory rate on or after January 1, 1958, from coupon bond interest
exempt under Sec. 516.4(b), the withholding agent shall release and pay
over to the person from whom the tax was withheld an amount which is
equal to the tax so withheld, if the taxpayer also attaches to such form
a letter in duplicate, signed by the owner, or by his trustee or agent,
and containing the following:
(a) The name and the address of the obligor;
(b) The name and the address of the owner of the interest from which
the excess tax was withheld;
(c) A statement that, at the time when the interest was received
from which the excess tax was withheld, the owner was neither a citizen
nor a resident of the United States but was a resident of Austria, or,
in the case of a corporation or other entity, the owner was an Austrian
corporation or other entity; and
(d) A statement that the owner at no time during the taxable year in
which the interest was received had a permanent establishment in the
United States. One such substitute form shall be filed in duplicate with
respect to each issue of bonds and will serve with respect to that issue
to replace all Forms 1001 previously filed by the taxpayer in the
calendar year in which the excess tax was withheld and with respect to
which such excess is released.
(ii) Disposition of form. The original and duplicate of substitute
Form 1001-A (and letter) shall be forwarded by the withholding agent to
the Director of International Operations, Internal Revenue Service,
Washington, D.C., in accordance with Sec. 1.1461-2(b) of this chapter.
(5) Interest on noncoupon bonds, royalties, pensions, and annuities.
If a taxpayer furnishes to the withholding agent the authorization of
release prescribed in Sec. 516.4(d)(2)(ii), Sec. 516.5(a)(2)(ii), or
Sec. 516.6(b)(2) and United States tax has been withheld at the
statutory rate on or after January 1, 1958, from the interest, copyright
royalties or other like amounts, pensions, or annuities in respect to
which such authorization is prescribed, the withholding agent shall
release and pay over to the person from whom the tax was withheld an
amount which is equal to the tax so withheld.
(6) Motion picture film rentals. If a taxpayer furnishes to the
withholding agent the authorization of release prescribed in
Sec. 516.5(b)(2)(ii) and United States tax has been withheld at the
statutory rate on or after January 1, 1958, from the motion picture film
rentals in respect to which such authorization is prescribed, the
withholding agent shall release and pay over to the person from whom the
tax was withheld an amount which is equal to the difference between the
tax so withheld and the tax required to be withheld pursuant to
Sec. 516.5(b)(2)(i).
(b) Amounts not to be released. The provisions of this section do
not apply to excess tax withheld at source which has been paid by the
withholding agent to the Director of International Operations.
[[Page 110]]
(c) Statutory rate. As used in this section, the term ``statutory
rate'' means the rate prescribed by chapter 3 of the Internal Revenue
Code of 1954 as though the convention had not come into effect.
(d) Amounts withheld during 1957. For provisions respecting the
refund of excess tax withheld during the calendar year 1957, see
Sec. 516.10.
Sec. 516.10 Refund of excess tax withheld during 1957.
(a) In general. Where United States tax withheld at the source
during the calendar year 1957 from dividends, interest, copyright
royalties and the like, motion picture film rentals, private pensions or
private life annuities is in excess of the tax imposed under subtitle A
(relating to the income tax) of the Internal Revenue Code of 1954, as
modified by the convention, a claim by the taxpayer for refund of any
overpayment resulting therefrom may be made under section 6402 of such
Code and the regulations thereunder.
(b) Form of claim--(1) Where return previously filed. If the
taxpayer has previously filed an income tax return with the Internal
Revenue Service for the taxable year in which an overpayment has
resulted because of the application of the convention, he should make a
claim for refund of the overpayment by filing Form 843 or an amended
return.
(2) Where no return previously filed. If the taxpayer has not
previously filed an income tax return with the Internal Revenue Service
for the taxable year in which an overpayment has resulted because of the
application of the convention, he should make a claim for refund of the
overpayment by filing Form 1040NB, Form 1040NB-a, Form 1040B, Form 1120,
or Form 1120NB, whichever is applicable, showing the overpayment. Such
return will serve as a claim for refund, and it will not be necessary
for the taxpayer to file Form 843.
(c) Information required. If the taxpayer's total gross income
(including every item of capital gain subject to tax) from sources
within the United States for the taxable year in which such overpayment
resulted has not been disclosed in an income tax return filed with the
Internal Revenue Service prior to the time the claim for refund is made,
the taxpayer shall disclose such total gross income with his claim. In
the event that securities are held in the name of a person other than
the actual or beneficial owner, the name and address of such person
shall be furnished with the claim. In addition to such other information
as may be required to establish the overpayment, there shall also be
included in such claim for refund:
(1) A statement that, at the time when the item or items of income
were received (or ``paid'', in the case of private pensions and private
life annuities) from which the excess tax was withheld, (i) the taxpayer
was neither a citizen nor a resident of the United States but was a
resident of Austria, or, in the case of a corporation or other entity,
(ii) the taxpayer was an Austrian corporation or other entity; and
(2) A statement that the taxpayer at no time during the taxable year
in which the income was received had a permanent establishment within
the United States.
(d) Exceptions--(1) Private pensions and private life annuities. If
the taxpayer is an individual who during the taxable year of overpayment
received income from United States sources consisting exclusively of
private pensions or private life annuities entitled to the benefit of
Article XI (2) of the convention, the statement specified in paragraph
(c)(2) of this section shall not be required.
(2) Dividends paid by a related corporation. As to additional
information required in the case of an Austrian corporation claiming the
benefit of the 5 percent rate on dividends paid by a related
corporation, see Sec. 516.2(c).
Sec. 516.11 Information to be furnished in ordinary course.
For provisions relating to the exchange of information under Article
XVI of the convention, see Sec. 1.1461-2(d) of this chapter.
Sec. 516.12 Taxable years beginning in 1956 and ending in 1957.
If, in the case of a taxable year beginning in 1956 and ending in
1957, a taxpayer has no permanent establishment in the United States at
any time during that part of the taxable year which
[[Page 111]]
follows December 31, 1956, then he shall, for purposes of Secs. 516.1 to
516.12 be deemed not to have had a permanent establishment in the United
States at any time during the taxable year.
PART 517--PAKISTAN--Table of Contents
Subpart--Withholding of Tax
Sec.
517.1 Introductory.
517.2 Dividends paid by, or to, a Pakistan company.
517.3 Patent and copyright royalties.
517.4 Private pensions and annuities.
517.5 Interest derived by the State Bank of Pakistan.
517.6 Beneficiaries of a domestic estate or trust.
517.7 Release of excess tax withheld at source.
517.8 Information to be furnished in ordinary course.
517.9 Application of the convention to fiscal years.
Authority: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805.
Source: Treasury Decision 6431, 24 FR 10100, Dec. 15, 1959; 25 FR
14022, Dec. 31, 1960, unless otherwise noted.
Effective Date Note: By T.D. 8732, 62 FR 53498, Oct. 14, 1997, part
517 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--Withholding of Tax
Sec. 517.1 Introductory.
(a) Pertinent provisions of the convention. The income tax
convention between the United States and Pakistan, signed on July 1,
1957, referred to in Secs. 517.1 to 517.9 as the convention, provides in
part as follows, effective for taxable years beginning on or after
January 1, 1959:
Article I
(1) The taxes which are the subject of the present Convention are:
(a) In the United States of America: The Federal income taxes,
including surtaxes (hereinafter referred to as United States tax)..
(b) In Pakistan: The income tax, supertax and the business profits
tax (hereinafter referred to as Pakistan tax).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character (including excess profits tax) imposed
by either contracting State after the date of signature of the present
Convention, or by the Government of any territory to which the present
Convention is extended under Article XVIII.
Article II
(1) In the present Convention, unless the context otherwise
requires:
(a) The term ``United States'' means the United States of America
and when used in a geographical sense means the States thereof, the
Territories of Alaska and Hawaii and the District of Columbia;
(b) The term ``Pakistan'' means the Provinces of Pakistan and the
Capital of the Federation;
(c) The terms ``one of the contracting States'' and ``the other
contracting State'' mean the United States or Pakistan, as the context
requires;
(d) The term ``tax'' means United States tax, or Pakistan tax, as
the context requires;
(e) The term ``person'' includes any body of persons, corporate or
not corporate;
(f) The term ``company'' means any body corporate or not corporate,
assessed as a company under Pakistan law relating to Pakistan tax;
(g) The term ``United States corporation'' means a corporation,
association or other like entity created or organized in the United
States or under the law of the United States or of any State or
Territory of the United States;
(h) The term ``resident of the United States'' means any individual
or fiduciary who is resident in the United States for the purposes of
the United States tax, and not resident in Pakistan for the purposes of
the Pakistan tax, and any United States corporation or any partnership
created or organized in the United States or under the laws of the
United States, being a corporation or partnership which is not resident
in Pakistan for the purposes of Pakistan tax;
(i) The term ``resident of Pakistan'' means any person (other than a
citizen of the United States or a United States corporation) who is
resident in Pakistan for the purposes of Pakistan tax and not resident
in the United States for the purposes of the United States tax. A
company is to be regarded as a resident of Pakistan if its business is
managed and controlled in Pakistan;
(j) The terms ``resident of one of the contracting States'' and
``resident of the other contracting State'' means a person who is a
resident of the United States or a person who is a resident of Pakistan,
as the context requires;
(k) The terms ``United States enterprise'' and ``Pakistan
enterprise'' mean, respectively an industrial or commercial enterprise
or undertaking carried on in the United States by a resident of the
United States and an industrial or commercial enterprise or
[[Page 112]]
undertaking carried on in Pakistan by a resident of Pakistan; and the
terms ``enterprise of one of the contracting States'' and ``enterprise
of the other contracting State'' mean a United States enterprise or a
Pakistan enterprise, as the context requires;
(l) The term ``industrial or commercial profits'' does not include
rents or royalties in respect of motion picture films or of oil wells,
mines and quarries, or income in the form of dividends, interest, rents
or royalties, or fees or other remuneration derived by an enterprise
from the management, control or supervision of the trade, business, or
other activity of another enterprise or concern, or remuneration for
labor or personal services, or income from the operation of ships;
(m) The term ``permanent establishment'', when used with respect to
an enterprise of one of the contracting States, means a branch,
management, factory or other fixed place of business, but does not
include an agency unless the agent has, and habitually exercises, a
general authority to negotiate and conclude contracts on behalf of such
enterprise or has a stock of merchandise from which he regularly fills
orders on its behalf. In this connection--
(i) An enterprise of one of the contracting States shall not be
deemed to have a permanent establishment in the other contracting State
merely because it carries on business dealings in that other contracting
State through a bona fide broker or general commission agent acting in
the ordinary course of his business as such; and
(ii) The fact that a corporation or company which is a resident of
one of the contracting States has a subsidiary corporation or company
which is a resident of the other contracting State or which is engaged
in trade or business in such other contracting State (whether through a
permanent establishment or otherwise) shall not of itself constitute
that subsidiary corporation or company a permanent establishment of its
parent corporation or company;
(n) The term ``taxation authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury and, in the case of Pakistan, the Central
Board of Revenue or their authorized representatives; and, in the case
of any territory to which the present Convention is extended under
Article XVIII, the competent authority for the administration in such
territory of the taxes to which the present Convention applies.
(2) In the application of the provisions of the present Convention
by one of the contracting States, any term not otherwise defined shall,
unless the contest otherwise requires, have the meaning which it has
under the laws of that contracting State relating to the taxes which are
the subject of the present Convention.
* * * * *
Article VI
(1) The rate of United States tax on dividends paid by a United
States corporation to a Pakistan company--
(i) Not having a permanent establishment in the United States and
(ii) Owning shares carrying more than 50 percent of the voting power
in the corporation paying such dividends shall not exceed fifteen
percent.
* * * * *
Article VII
(1) Dividends paid by a company which is a resident of Pakistan
shall be exempt from United States tax except where the recipient
thereof is a citizen or resident or corporation of the United States.
* * * * *
Article VIII
(1) Any royalty (other than royalties or rentals from motion picture
films) paid as consideration for the use of, or for the privilege of
using, any copyright, patent, design, secret process or formula,
trademark, or other like property, and derived from sources in one of
the contracting States by a resident of the other contracting State not
having a permanent establishment in the former State shall be exempt
from tax by such former State.
(2) Where any royalty exceeds a fair and reasonable consideration in
respect of the rights for which it is paid, the exemption provided by
the present Article shall apply only to so much of the royalty as
represents such fair and reasonable consideration.
Article IX
(1) Remuneration, including pensions and annuities, paid by or on
behalf of the Government of the United States or its political
subdivisions to an individual who is a citizen of the United States, not
ordinarily resident in Pakistan, for services rendered to that
Government in the discharge of governmental functions shall be exempt
from Pakistan tax.
(2) Remuneration, including pensions and annuities, paid by or on
behalf of the Government of Pakistan or the Government of a Province in
Pakistan or any local authority thereof to any individual who is a
citizen of Pakistan not having immigrant status in the United States,
for services rendered in the discharge of functions of that Government
or
[[Page 113]]
of local authority, as the case may be, shall be exempt from United
States tax.
(3) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or business
carried on for purposes of profit.
Article X
(1) A pension or annuity (other than a pension or annuity of the
kind referred to in paragraphs (1) and (2) of Article IX) derived from
sources within one of the contracting States by a resident of the other
contracting State shall be exempted from tax by the former State.
(2) The term ``annuity,'' for the purposes of this Article, means a
stated sum payable periodically at stated times during life or during a
specified or ascertainable period of time, under an obligation to make
the payments in return for adequate and full consideration in money or
money's worth.
(3) This Article shall not apply to a pension or annuity payable
from a superannuation fund approved or recognized under the tax law of
Pakistan nor to a pension or annuity from a fund, under an employees'
pension or annuity plan, contributions to which under the tax law of the
United States are deductible in determining the taxable income of the
employer.
* * * * *
Article XIV
(1) Effective January 1, 1956 the State Bank of Pakistan shall be
exempted from United States tax with respect to interest from sources
within the United States.
* * * * *
Article XVI
(1) The taxation authorities of the contracting States shall
exchange such information (being information which is available under
their respective taxation laws in the normal course of administration)
as is necessary for carrying out the provisions of the present
Convention or for the prevention of fraud or for the administration of
statutory provisions in relation to the taxes which are the subject of
the present Convention. Any information so exchanged shall be treated as
secret and shall not be disclosed to any persons other than those
concerned with the assessment and collection of the taxes which are the
subject of the present Convention. No information shall be exchanged
which would disclose any trade, business, industrial or professional
secret or trade process.
* * * * *
(3) The taxation authorities of both contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of the present Convention and may communicate with each other
directly for the purpose of giving effect to the provisions of the
present Convention.
(4) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance now or hereafter accorded by the laws of either contracting
State in determining the tax of such State.
Article XVII
(1) The citizens or nationals of one of the contracting States shall
not, while resident in the other contracting State, be subjected in such
other State to taxes or any requirement connected therewith which is
other, higher or more burdensome than the taxes and connected
requirements to which the citizens or nationals of such other State
resident therein are or may be subjected.
(2) The term ``citizens'' or ``nationals'', as used in this Article,
includes all legal persons, partnerships and associations deriving their
status from, or created or organized under, the laws in force in the
respective contracting States.
(3) Nothing contained in this Article shall be construed--
(a) as obliging either of the contracting States to grant to persons
not resident in its territory those personal allowances, reliefs and
reductions for tax purposes which are by law available only to persons
who are so resident; or
(b) as affecting any provisions of the law of Pakistan regarding the
imposition of tax on a non-resident or the grant of rebate of tax to
companies fulfilling specified requirements regarding the declaration
and payment of dividends, unless those requirements are fulfilled.
* * * * *
Article XIX
The present Convention shall come into force on the date when the
last of all such things shall have been done in the United States and
Pakistan as are necessary to give the Convention the force of law in the
United States and Pakistan, respectively, and shall thereupon have
effect--
(a) In the United States, for the taxable years beginning on or
after the first day of January of the year in which the instruments of
ratification are exchanged;
(b) In Pakistan, in respect of the ``previous years'' or the
``chargeable accounting periods'' (as defined by the tax laws of
Pakistan) beginning on or after the first day of January of the year in
which the instruments of ratification are exchanged.
[[Page 114]]
Article XX
The present Convention shall continue in effect indefinitely but
either of the contracting States may, on or before the 30th day of June
in any calendar year not earlier than three years from the date of
signature of the present Convention, give to the other contracting State
written notice of termination and, in such event the present Convention
shall cease to be effective--
(a) in the United States, for the taxable years beginning on or
after the first day of January next following such written notice of
termination; and
(b) in Pakistan, in respect of the ``previous years'' or the
``chargeable accounting periods'' (as defined by the tax laws of
Pakistan) beginning on or after the first day of January next following
such written notice of termination.
(b) Meaning of terms. As used in Secs. 517.1 to 517.9, any term
defined in the convention shall have the meaning so assigned to it; any
term not so defined shall, unless the context otherwise requires, have
the meaning which such term has under the internal revenue laws of the
United States.
Sec. 517.2 Dividends paid by, or to, a Pakistan company.
(a) Exemption from, or reduction in rate of, United States tax--(1)
Dividends paid by a foreign company managed and controlled in Pakistan.
Dividends which are paid by a foreign company whose business is managed
and controlled in Pakistan and are received in a taxable year beginning
on or after January 1, 1959, by a recipient who is not a citizen or
resident or corporation of the United States are exempt from United
States tax under the provisions of Article VII(1) of the convention.
(2) Dividends paid to a Pakistan parent company. The rate of United
States tax imposed upon dividends paid by a domestic corporation and
received from sources within the United States in a taxable year
beginning on or after January 1, 1959, by a Pakistan company shall not
exceed 15 percent under the provisions of Article VI(1) of the
convention if (i) the Pakistan company does not have a permanent
establishment in the United States at any time during the taxable year
in which the dividend is received and (ii) the Pakistan company owns, at
the time the dividend is paid, shares of stock carrying more than 50
percent of the voting power of the domestic corporation. For the
purposes of this subparagraph, the term ``Pakistan company'' means a
company, as defined in Article II(1)(f) of the convention.
(b) Withholding of tax from dividends--(1) Exemption from
withholding. No withholding of United States tax is required in the case
of dividends paid by a foreign company whose business is managed and
controlled in Pakistan if, in accordance with paragraph (a)(1) of this
section, the dividends are exempt from United States tax.
(2) Withholding of tax at rate of 15 percent from dividends paid to
a Pakistan parent company--(i) Notification by letter. To secure
withholding of United States tax on or after January 1, 1959, at the
rate of 15 percent in the case of dividends entitled to the reduced rate
in accordance with paragraph (a)(2) of this section, the Pakistan
company shall notify the withholding agent by letter in duplicate that
the dividends are subject to the reduced rate of United States tax under
the provisions of Article VI(1) of the convention. The letter of
notification shall be signed by an officer of the company and shall show
the name and address of the corporation paying the dividends, the name
and address of the Pakistan company receiving the dividends, and the
official title of the officer signing the letter. The letter shall
contain a statement that (a) the owner of the dividends is a Pakistan
company, (b) the owner at no time during the current taxable year had a
permanent establishment in the United States, and (c) the Pakistan
company owns shares of stock carrying more than 50 percent of the voting
power of the domestic corporation paying the dividends. The letter shall
also indicate the dates on which the current taxable year of the
taxpayer begins and ends.
(ii) Use of letter for release of excess tax. If the letter of
notification is also to be used as authorization for the release,
pursuant to Sec. 517.7(a)(2), of excess tax withheld from dividends, it
shall also contain a statement that (a) at the time when the dividends
were paid from which the excess tax was withheld, the owner was a
Pakistan company, (b) the owner at no time during the taxable year in
which the dividends
[[Page 115]]
were received had a permanent establishment in the United States, and
(c) the Pakistan company owned, at the time when the dividends were
paid, shares of stock carrying more than 50 percent of the voting power
of the domestic corporation paying the dividends. The dates of the
beginning and ending of the taxable year of the taxpayer in which the
dividends were received shall also be indicated.
(iii) Manner of filing letter. The letter of notification, which
shall constitute authorization for withholding of tax at the reduced
rate of 15 percent, shall be filed with the withholding agent for each
successive 3-calendar-year period during which the dividends are paid.
For this purpose, the first of such periods shall commence with the
beginning of the calendar year in which the dividends are first paid on
or after January 1, 1959. Each letter filed with any withholding agent
shall be filed not later than 20 days preceding the date of the first
payment within each successive period, or, if that is not possible
because of special circumstances, as soon as possible after such first
payment. Once a letter of notification has been filed in respect of any
3-calendar-year period, no additional letter need be filed in respect
thereto unless the Commissioner of Internal Revenue notifies the
withholding agent that an additional letter shall be filed by the
taxpayer. If, after filing a letter of notification, the Pakistan
company ceases to be eligible for the reduction in rate of United States
tax granted by Article VI(1) of the convention, it shall promptly notify
the withholding agent by letter in duplicate. When any change occurs in
the ownership of the shares of stock as recorded in the books of record,
the reduction in the rate of withholding of United States tax shall no
longer apply unless the new owner of record is entitled to and does
properly file a letter of notification with the withholding agent.
(iv) Disposition of letter. Each letter of notification, or the
duplicate thereof, shall be forwarded immediately by the withholding
agent to the Director of International Operations, Internal Revenue
Service, Washington 25, D.C.
(3) Dividends paid to Pakistan company where degree of stock
ownership is uncertain--(i) Request for determination in respect of
future payments. If a Pakistan company anticipates the receipt of
dividends from a domestic corporation and the relationship existing
between the Pakistan company and the domestic corporation is such as to
render uncertain whether, by reason of the requirement as to stock
ownership, the reduction in rate of United States tax granted by Article
VI(1) of the convention will apply to such dividends, the Pakistan
company shall not undertake to file the letter of notification
prescribed in subparagraph (2)(i) of this paragraph unless it has, prior
to such filing, applied for and received from the Commissioner of
Internal Revenue, Washington 25, D.C., a determination that it owns
shares of stock carrying more than 50 percent of the voting power of the
domestic corporation. The application for the determination shall
contain a full statement of all the facts pertinent to such a
determination.
(ii) Notification of determination. As soon as practicable after the
application has been filed, the Commissioner of Internal Revenue will
determine whether the Pakistan company owns shares of stock carrying
sufficient voting power of the domestic corporation to permit the
Pakistan company to claim the benefit of Article VI(1) of the convention
in the case of such dividends and shall notify the Pakistan company of
his determination. The Pakistan company shall thereafter file with the
withholding agent a copy of the Commissioner's letter of notification.
(iii) Securing reduced rate of withholding. If the determination of
the Commissioner of Internal Revenue is that the Pakistan company does
own shares of stock carrying more than 50 percent of the voting power of
the domestic corporation, the Pakistan company may thereafter, if
otherwise qualified, secure the reduced rate of withholding of United
States tax by filing a letter of notification in accordance with
subparagraph (2) of this paragraph.
(iv) Period during which determination is applicable. A
determination by the Commissioner of Internal Revenue that a Pakistan
company does own shares of stock carrying sufficient voting power
[[Page 116]]
of the domestic corporation to permit the Pakistan company to claim the
benefit of Article VI(1) of the convention will apply until such time as
the stock ownership of the domestic corporation has changed to the
extent that, because of such change, dividends to be received from the
domestic corporation by the Pakistan company no longer qualify for the
reduced rate of United States tax under Article VI(1) of the convention.
If such change in stock ownership occurs, the Pakistan company shall
promptly notify both the Commissioner of Internal Revenue and the
withholding agent of the then existing facts with respect to such stock
ownership.
(v) Request for determination in respect of past payments. If a
Pakistan company has received on or after January 1, 1959, dividends
from a domestic corporation and the relationship existing between the
Pakistan company and the domestic corporation was at the time the
dividends were paid, such as to render uncertain whether, by reason of
the requirement as to stock ownership, the dividends qualified for the
reduction in rate of United States tax granted by Article VI(1) of the
convention, the Pakistan company shall apply to the Commissioner of
Internal Revenue, Washington 25, D.C., for a determination as to whether
the Pakistan company owned, at the time the dividends were paid, shares
of stock carrying sufficient voting power of the domestic corporation.
If the Commissioner's determination is that at such time the stock
ownership was such as to permit the application of the reduced rate of
United States tax granted by Article VI(1) of the convention, his letter
of notification may, subject to the provisions of Sec. 517.7(a)(2),
authorize the release of excess tax withheld from such dividends.
Sec. 517.3 Patent and copyright royalties.
(a) Exemption from United States tax--(1) In general. Any royalty
paid as consideration for the use of, or for the privilege of using, any
copyright, patent, design, secret process or formula, trademark, or
other like property, and received from sources within the United States
in a taxable year beginning on or after January 1, 1959, by a
nonresident alien individual who is resident in Pakistan for the
purposes of Pakistan tax, or by a foreign company whose business is
managed and controlled in Pakistan, is exempt from United States tax
under the provisions of Article VIII of the convention if such alien or
company has not had a permanent establishment in the United States at
any time during the taxable year in which the royalty is received.
Notwithstanding the preceding sentence, no exemption from United States
tax shall be granted under Article VIII of the convention in respect of
royalties or rentals from motion picture films.
(2) Exemption applicable to reasonable consideration only. If any
royalty exceeds a fair and reasonable consideration for the rights in
respect of which it is paid, the exemption under this paragraph shall
apply to only so much of the royalty as represents the fair and
reasonable consideration.
(3) Personal services. If a nonresident alien individual who is
resident in Pakistan for the purposes of Pakistan tax were to perform
personal services within the United States during the taxable year but
not have a permanent establishment in the United States at any time
during the year, he would be entitled to the exemption granted by
Article VIII of the convention even though under the provisions of
section 871(c) of the Internal Revenue Code of 1954 he had engaged in
trade or business within the United States during that year by reason of
his having performed personal services therein.
(b) Exemption from witholding of tax--(1) Notification by letter. To
avoid withholding of United States tax on or after January 1, 1959, from
a royalty which is exempt in accordance with paragraph (a) of this
section, the nonresident alien individual who is resident in Pakistan
for the purposes of Pakistan tax, or the foreign company whose business
is managed and controlled in Pakistan, shall notify the withholding
agent by letter in duplicate that the royalty is exempt from United
States tax under the provisions of Article VIII of the convention. The
letter of notification shall be signed by the owner of the royalty, or
by his trustee or agent, and shall show the name and address of
[[Page 117]]
the obligor and the name and address of the owner of the royalty. The
letter shall contain a statement that (i) the owner is neither a citizen
nor a resident of the United States but is a resident of Pakistan for
the purposes of Pakistan tax, or, in the case of a corporation, the
owner is a foreign company whose business is managed and controlled in
Pakistan, and (ii) the owner has at no time during the current taxable
year had a permanent establishment in the United States. The letter
shall also indicate the dates on which the current taxable year of the
taxpayer begins and ends.
(2) Use of letter for release of excess tax. If the letter is also
to be used as authorization for the release, pursuant to
Sec. 517.7(a)(3), of excess tax withheld from the royalty, it shall also
contain a statement that (i) at the time when the royalty was received
from which the excess tax was withheld, the owner was neither a citizen
nor a resident of the United States but was a resident of Pakistan for
the purposes of Pakistan tax, or, in the case of a corporation, the
owner was a foreign company whose business was managed and controlled in
Pakistan, and (ii) the owner at no time during the taxable year in which
the royalty was received had a permanent establishment in the United
States. The dates of the beginning and ending of the taxable year of the
taxpayer in which the royalty was received shall also be indicated.
(3) Manner of filing letter. The letter of notification, which shall
constitute authorization for the payment of the royalty without
withholding of United States tax at source, shall be filed with the
withholding agent for each successive 3-calendar-year period during
which the royalty is paid. For this purpose, the first of such periods
shall commence with the beginning of the calendar year in which the
royalty is first paid on or after January 1, 1959. Each letter filed
with any withholding agent shall be filed not later than 20 days
preceding the date of the first payment within each successive period,
or, if that is not possible because of special circumstances, as soon as
possible after such first payment. Once a letter has been filed in
respect of any 3-calendar-year period, no additional letter need be
filed in respect thereto unless the Commissioner of Internal Revenue
notifies the withholding agent that an additional letter shall be filed
by the taxpayer. If, after filing a letter of notification, the taxpayer
ceases to be eligible for the exemption from United States tax granted
by Article VIII of the convention, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of the royalty as recorded on the books of the payer, the
exemption from withholding of United States tax shall no longer apply
unless the new owner of record is entitled to and does properly file a
letter of notification with the withholding agent.
(4) Disposition of letter. Each letter of notification, or the
duplicate thereof, shall be forwarded immediately by the withholding
agent to the Director of International Operations, Internal Revenue
Service, Washington 25, D.C.
(5) Reasonableness of consideration. For purposes of this paragraph,
the withholding agent may, unless he has information to the contrary,
presume that the royalty represents a fair and reasonable consideration
for the rights in respect of which it is paid.
Sec. 517.4 Private pensions and annuities.
(a) Exemption from United States tax--(1) Pensions and annuities
which are exempt. Except as provided in subparagraph (2) of this
paragraph, a pension or annuity which is derived from sources within the
United States and received in a taxable year beginning on or after
January 1, 1959, by a nonresident alien individual who is resident in
Pakistan for the purposes of Pakistan tax shall be exempt from United
States tax under the provisions of Article X of the convention.
(2) Pensions and annuities which are not exempt. The following
pensions or annuities are not exempt from United States tax under the
provisions of Article X of the convention or under this section--
(i) A pension or annuity paid by or on behalf of the Government of
the United States or its political subdivisions, for services rendered
to that Government in the discharge of governmental functions; and
[[Page 118]]
(ii) A pension or annuity paid by or on behalf of the Government of
Pakistan or the Government of a Province in Pakistan or any local
authority thereof, for services rendered in the discharge of functions
of that Government or of local authority, as the case may be; and
(iii) A pension or annuity payable from a fund, under an employees'
pension or annuity plan, contributions to which are deductible under the
tax law of the United States in determining taxable income of the
employer.
(b) Definition of annuity. As used in this section, the term
``annuity'' means a stated sum payable periodically at stated times
during life, or during a specified or ascertainable period of time,
under an obligation to make the payments in return for adequate and full
consideration in money or money's worth.
(c) Exemption from withholding of tax--(1) Notification by letter.
To avoid withholding of United States tax on or after January 1, 1959,
from pensions or annuities which are exempt from tax in accordance with
paragraph (a) of this section, the nonresident alien individual who is
resident in Pakistan for the purposes of Pakistan tax shall notify the
withholding agent by letter in duplicate that the pensions or annuities
are exempt from United States tax under the provisions of Article X of
the convention. The letter of notification shall be signed by the owner
of the income, shall show the name and address of both the payer and the
owner of the income, and shall contain a statement that the owner, an
individual, is neither a citizen nor a resident of the United States but
is a resident of Pakistan for the purposes of Pakistan tax. The letter
shall also indicate the dates on which the current taxable year of the
taxpayer begins and ends.
(2) Use of letter for release of tax. If the letter is also to be
used as authorization for the release, pursuant to Sec. 517.7(a)(3), of
excess tax withheld from the pensions or annuities, it shall also
contain a statement that the owner was, at the time when the income was
received from which the excess tax was withheld, neither a citizen nor a
resident of the United States but was a resident of Pakistan for the
purposes of Pakistan tax. The dates of the beginning and ending of the
taxable year of the taxpayer in which the income was received shall also
be indicated.
(3) Manner of filing letter. The letter of notification shall
constitute authorization for the payment of the pensions or annuities
without withholding of United States tax at source unless the
Commissioner of Internal Revenue notifies the withholding agent
thereafter to withhold the tax from such items of income. If, after
filing a letter of notification, the owner of the income ceases to be
eligible under the convention for the exemption from United States tax
in the case of such items of income, he shall promptly notify the
withholding agent by letter in duplicate. When any change occurs in the
ownership of the income as recorded on the books of the payer, the
exemption from withholding of United States tax shall no longer apply
unless the new owner of record is entitled to and does properly file a
letter of notification with the withholding agent.
(4) Disposition of letter. Each letter of notification, or the
duplicate thereof, shall be forwarded immediately by the withholding
agent to the Director of International Operations, Internal Revenue
Service, Washington 25, D.C.
Sec. 517.5 Interest derived by the State Bank of Pakistan.
(a) Exemption from United States tax. Any interest of the State Bank
of Pakistan which is received from sources within the United States on
or after January 1, 1956, is, to the extent not exempt from tax under
section 892 of the Internal Revenue Code of 1954, exempt from United
States tax under the provisions of Article XIV(1) of the convention.
(b) Exemption from withholding of tax. No withholding of United
States tax is required in the case of interest received from sources
within the United States by the State Bank of Pakistan if, in accordance
with paragraph (a) of this section, the interest is exempt from United
States tax.
(c) Refund of excess tax withheld before January 1, 1959. If United
States tax has been withheld before January 1, 1959, and on or after
January 1, 1956, from interest of the State Bank of Pakistan,
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a claim by the bank for the refund of any overpayment resulting
therefrom may be made under section 6402 of the Internal Revenue Code of
1954 and the regulations thereunder. For the release of excess tax
withheld from such interest on or after January 1, 1959, see
Sec. 517.7(a)(4).
Sec. 517.6 Beneficiaries of a domestic estate or trust.
A nonresident alien individual who is resident in Pakistan for the
purposes of Pakistan tax and who is a beneficiary of a domestic estate
or trust shall be entitled to the exemption from United States tax
granted by Article VIII of the convention with respect to patent and
copyright royalties to the extent that (a) any amount paid, credited, or
required to be distributed by the estate or trust to the beneficiary is
deemed to consist of those items and (b) the items so deemed to be
included in such amount would, without regard to the convention, be
includible in his gross income; provided, however, that the beneficiary
otherwise satisfies the requirements for exemption specified in Article
VIII of the convention. To obtain the exemption from withholding of
United States tax in such a case, the beneficiary must execute and
submit to the fiduciary of the estate or trust in the United States the
letter of notification prescribed in Sec. 517.3(b).
Sec. 517.7 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Dividends paid by a foreign company
managed and controlled in Pakistan. If United States tax at the
statutory rate has been withheld on or after January 1, 1959, from
dividends paid by a foreign company whose business is managed and
controlled in Pakistan to a recipient other than a citizen or resident
or corporation of the United States, the withholding agent shall release
and pay over to the person from whom the tax was withheld an amount
which is equal to the tax so withheld.
(2) Dividends paid to a Pakistan parent company. If United States
tax at the statutory rate has been withheld on or after January 1, 1959,
from dividends entitled to the reduced rate of 15 percent in accordance
with Sec. 517.2(a)(2), the withholding agent shall, if furnished the
authorization of release prescribed in Sec. 517.2(b)(2)(ii) or (3)(v),
release and pay over to the company from which the tax was withheld an
amount which is equal to the difference between the tax so withheld from
income received by the taxpayer in a taxable year beginning on or after
January 1, 1959, and the tax required to be withheld from such income
pursuant to Sec. 517.2(b)(2)(i).
(3) Patent and copyright royalties, pensions, and annuities. If a
taxpayer furnishes to the withholding agent the authorization of release
prescribed in Sec. 517.3(b)(2) or Sec. 517.4(c)(2) and United States tax
has been withheld at the statutory rate on or after January 1, 1959,
from the royalties, pensions, or annuities in respect of which such
authorization is prescribed, the withholding agent shall release and pay
over to the person from whom the tax was withheld an amount which is
equal to the tax so withheld from income received by the taxpayer in a
taxable year beginning on or after January 1, 1959.
(4) Interest paid to the State Bank of Pakistan. If United States
tax at the statutory rate has been withheld on or after January 1, 1959,
from interest of the State Bank of Pakistan, the withholding agent shall
release and pay over to that bank an amount which is equal to the tax so
withheld.
(b) Amounts not to be released. The provisions of this section do
not apply to excess tax withheld at source which has been paid by the
withholding agent to the Director of International Operations, Internal
Revenue Service.
(c) Statutory rate. As used in this section, the term ``statutory
rate'' means the rate of tax required to be withheld in accordance with
chapter 3 of the Internal Revenue Code of 1954 as though the convention
had not come into effect.
Sec. 517.8 Information to be furnished in ordinary course.
For provisions relating to the exchange of information under Article
XVI of the convention, see paragraph (d) of Sec. 1.1461-2 of this
chapter (Income Tax Regulations; 26 CFR 1.1461-2(d)).
[[Page 120]]
Sec. 517.9 Application of the convention to fiscal years.
Since the convention is effective for taxable years beginning on or
after January 1, 1959, the fact that the exemption from, or reduction in
the rate of, withholding of United States tax at source authorized by
Secs. 517.1 to 517.9 is made effective beginning January 1, 1959, is not
a determination in itself that the item of income concerned is entitled
to the benefit of the exemption from, or reduced rate of, United States
tax granted by the convention.
PARTS 518--519 [RESERVED]
PART 520--SWEDEN--Table of Contents
Subpart--General Income Tax
Sec.
520.101 Introductory.
520.102 Scope of this subpart.
520.103 Definitions.
520.104 Scope of convention with respect to determination of
``industrial and commercial profits'' of a nonresident alien
individual resident of Sweden or of a Swedish corporation or
other entity carrying on a Swedish enterprise in the United
States.
520.105 Control of a domestic enterprise by a Swedish enterprise.
520.106 Income from operation of ships or aircraft.
520.107 Income from real property.
520.108 Mineral royalties.
520.109 Patent and copyright royalties.
520.110 Dividends and interest.
520.111 Capital gains.
520.112 Wages, salaries and similar compensation, pensions and life
annuities.
520.113 Compensation for labor or personal services.
520.114 Remittances.
520.115 Scope of Article XIV.
520.116 Reciprocal administrative assistance.
520.117 Information to be furnished in the ordinary course.
520.118 Information in specific cases.
520.119 Mutual assistance in the collection of taxes.
Authority: 53 Stat. 32, 467; 26 U.S.C. 62, 3791.
Source: Treasury Decision 4975, 5 FR 2400, June 28, 1940, unless
otherwise noted. Redesignated at 25 FR 14022, Dec. 31, 1960.
Effective Date Note: By T.D. 8732, 62 FR 53498, Oct. 14, 1997, part
520 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed until Jan. 1, 2000.
Subpart--General Income Tax
Sec. 520.101 Introductory.
(a) The tax convention and protocol between the United States and
Sweden, referred to in this subpart as the convention, proclaimed by the
President of the United States on December 12, 1939, and effective
January 1, 1940, provides as follows:
Article I
The taxes referred to in this Convention are:
(a) In the case of the United States of America:
(1) The Federal income taxes, including surtaxes and excess-profits
taxes.
(2) The Federal capital stock tax.
(b) In the case of Sweden:
(1) The National income and property tax, including surtax.
(2) The National special property tax.
(3) The communal income tax.
It is mutually agreed that the present Convention shall also apply
to any other or additional taxes imposed by either contracting State,
subsequent to the date of signature of this Convention, upon
substantially the same bases as the taxes enumerated herein.
The benefits of this Convention shall accrue only to citizens and
residents of the United States of America, to citizens and residents of
Sweden and to United States or Swedish corporations and other entities.
Article II
An enterprise of one of the contracting States is not subject to
taxation by the other contracting State in respect of its industrial and
commercial profits except in respect of such profits allocable to its
permanent establishment in the latter State. The income thus taxed in
the latter State shall be exempt from taxation in the former State.
No account shall be taken, in determining the tax in one of the
contracting States, of the mere purchase of merchandise effected therein
by an enterprise of the other State.
The competent authorities of the two contracting States may lay down
rules by agreement for the apportionment of industrial and commercial
profits.
Article III
When an enterprise of one of the contracting States, by reason of
its participation in the management or capital of an enterprise of the
other contracting State,
[[Page 121]]
makes or imposes on the latter in their commercial or financial
relations conditions different from those which would be made with an
independent enterprise, any profits which should normally have appeared
in the balance sheet of the latter enterprise but which have been in
this manner diverted to the former enterprise may, subject to applicable
measures of appeal, be incorporated in the taxable profits of the latter
enterprise. In such case consequent rectifications may be made in the
accounts of the former enterprise.
Article IV
Income which an enterprise of one of the contracting States derives
from the operation of ships or aircraft registered in that State is
taxable only in the State in which registered. Income derived by such an
enterprise from the operation of ships or aircraft not so registered
shall be subject to the provisions of Article II.
Article V
Income of whatever nature derived from real property, including
gains derived from the sale of such property, but not including interest
from mortgages or bonds secured by real property, shall be taxable only
in the contracting State in which the real property is situated.
Article VI
Royalties from real property or in respect of the operation of
mines, quarries, or other natural resources shall be taxable only in the
contracting State in which such property, mines, quarries, or other
natural resources are situated.
Other royalties and amounts derived from within one of the
contracting States by a resident or by a corporation or other entity of
the other contracting State as consideration for the right to use
copyrights, patents, secret processes and formulas, trademarks and other
analogous rights, shall be exempt from taxation in the former State.
Article VII
1. Dividends shall be taxable only in the contracting State in which
the shareholder is resident or, if the shareholder is a corporation or
other entity, in the contracting State in which such corporation or
other entity is created or organized; provided, however, that each
contracting State reserves the right to collect and retain (subject to
applicable provisions of its revenue laws) the taxes which, under its
revenue laws, are deductible at the source, but not in excess of 10 per
centum of the amount of such dividends. For the purposes of this Article
the National income and property tax imposed by Sweden shall be deemed
to be a tax deducted at the source.
2. Notwithstanding the provisions of Article XXII of this
Convention, the provisions of this Article may be terminated by either
of the contracting States at the end of two years from the date upon
which this Convention enters into force or at any time thereafter,
provided at least six months' prior notice of termination is given, such
termination to become effective on the first day of January following
the expiration of such six-month period. In the event the provisions of
this Article are terminated, the provisions of--
(1) Article XIII (2), in so far as they relate to the special
property tax imposed by Sweden upon shares in a corporation;
(2) Article XIV(b)(2), relating to the allowance of an additional
deduction from taxes on dividends; and
(3) Article XVI, in so far as they relate to exchange of information
with respect to dividends,
will likewise terminate.
Article VIII
Interest on bonds, notes, or loans shall be taxable only in the
contracting State in which the recipient of such interest is a resident
or, in the case of a corporation or other entity, in the State in which
the corporation or other entity is created or organized; Provided,
however, That each contracting State reserves the right to collect and
retain (subject to applicable provisions of its revenue laws) the taxes
which, under its revenue laws, are deductible at the source.
Article IX
Gains derived in one of the contracting States from the sale or
exchange of capital assets by a resident or a corporation or other
entity of the other contracting State shall be exempt from taxation in
the former State, provided such resident or corporation or other entity
has no permanent establishment in the former State.
Article X
Wages, salaries and similar compensation and pensions paid by one of
the contracting States or by the political subdivisions or territories
or possessions thereof to individuals residing in the other State shall
be exempt from taxation in the latter State.
Private pensions and life annuities derived from within one of the
contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
Article XI
(a) Compensation for labor or personal services, including the
practice of the liberal professions, shall be taxable only in the
contracting State in which such services are rendered.
[[Page 122]]
(b) The provisions of paragraph (a) are, however, subject to the
following exceptions:
A resident of Sweden shall be exempt from United States tax upon
compensation for labor or personal services performed within the United
States of America if he fails within either of the following
classifications:
1. He is temporarily present within the United States of America for
a period or periods not exceeding a total of one hundred eighty days
during the taxable year and his compensation is received for labor or
personal services performed as an employee of, or under contract with, a
resident or corporation or other entity of Sweden; or
2. He is temporarily present in the United States of America for a
period or periods not exceeding a total of ninety days during the
taxable year and the compensation received for such services does not
exceed $3,000.00 in the aggregate.
In such cases Sweden reserves the right to the taxation of such income.
(c) The provisions of paragraph (b) of this Article shall apply,
mutatis mutandis, to a resident of the United States of America deriving
compensation for personal services performed within Sweden.
(d) The provisions of paragraphs (b) and (c) of this Article shall
have no application to the professional earnings of such individuals as
actors, artists, musicians and professional athletes.
(e) The provisions of this Article shall have no application to the
income to which Article X relates.
Article XII
Students or business apprentices from one contracting State residing
in the other contracting State exclusively for purposes of study or for
acquiring business experience shall not be taxable by the latter State
in respect of remittances received by them from within the former State
for the purposes of their maintenance or studies.
Article XIII
(1) If the property consists of:
(a) Immovable property and accessories appertaining thereto;
In the case of taxes on property or increment of property the
following provisions shall be applicable:
(b) Commercial or industrial enterprises, including maritime
shipping and air transport undertakings;
the tax may be levied only in that contracting State which is entitled
under the preceding Articles to tax the income from such property.
(2) In the case of all other forms of property, the tax may be
levied only in that contracting State where the taxpayer has his
residence or, in the case of a corporation or other entity, in the
contracting State where the corporation or other entity has been created
or organized.
The same principles shall apply to the United States capital stock
tax with respect to corporations of Sweden having capital or other
property in the United States of America.
Article XIV
It is agreed that double taxation shall be avoided in the following
manner:
(a) Notwithstanding any other provision of this Convention, the
United States of America in determining the income and excess-profits
taxes, including all surtaxes, of its citizens or residents or
corporations may include in the basis upon which such taxes are imposed
all items of income taxable under the revenue laws of the United States
of America as though this Convention had not come into effect. The
United States of America shall, however, deduct the amount of the taxes
specified in Article I (b) (1) and (3) of this Convention or other like
taxes from the income tax thus computed but not in excess of that
portion of the income tax liability which the taxpayer's net income
taxable in Sweden bears to his entire net income.
(b)(1) Notwithstanding any other provision of this Convention,
Sweden, in determining the graduated tax on income and property of its
residents or corporations or other entities, may include in the basis
upon which such tax is imposed all items of income and property subject
to such tax under the taxation laws of Sweden. Sweden shall, however,
deduct from the tax so calculated that portion of such tax liability
which the taxpayer's income and property exempt from taxation in Sweden
under the provisions of this Convention bears to his entire income and
property.
(2) There shall also be allowed by Sweden from its National income
and property tax a deduction offsetting the tax deducted at the source
in the United States of America, amounting to not less than 5 per centum
of the dividends from within the United States of America and subject to
such tax in Sweden. It is agreed that the United States of America shall
allow a similar credit against the United States income tax liability of
citizens of Sweden residing in the United States of America.
Article XV
With a view to the more effective imposition of the taxes to which
the present Convention relates, each of the contracting States
undertakes, subject to reciprocity, to furnish such information in the
matter of taxation, which the authorities of the State concerned have at
their disposal or are in a position to obtain under their own law, as
may be of use to the authorities of the other
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State in the assessment of the taxes in question and to lend assistance
in the service of documents in connection therewith. Such information
and correspondence relating to the subject matter of this Article shall
be exchanged between the competent authorities of the contracting States
in the ordinary course or on demand.
Article XVI
1. In accordance with the preceding Article, the competent
authorities of the United States of America shall forward to the
competent authorities of Sweden as soon as practicable after the close
of each calendar year the following information relating to such
calendar year:
(a) The names and addresses of all addresses within Sweden deriving
from sources within the United States of America dividends, interest,
royalties, pensions, annuities, or other fixed or determinable annual or
periodical income, showing the amount of such income with respect to
each addressee;
(b) Any particulars which the competent United States authorities
may obtain from banks, savings banks or other similar institutions
concerning assets belonging to individuals resident in Sweden or to
Swedish corporations or other entities;
(c) Any particulars which the competent United States authorities
may obtain from inventories in the case of property passing on death
concerning debts contracted with individuals resident in Sweden or
Swedish corporations or other entities.
2. The competent authorities of Sweden shall forward to the
competent authorities of the United States of America as soon as
practicable after the close of each calendar year the following
information relating to such calendar year:
(a) The particulars contained in the forms delivered to the Swedish
authorities in connection with the payment to individuals or
corporations or other entities whose addresses are within the United
States of America of dividends on shares in a corporation or
participation certificates in cooperative societies, and interest on
bonds or other similar securities;
(b) The particulars contained in permits accorded to individuals
resident in the United State of America or to United States corporations
or other entities to enable them to acquire for business purposes
immovable property situated in Sweden;
(c) Any particulars which the central Swedish authorities may obtain
from banks, savings banks or other similar institutions concerning
assets belonging to individuals resident in the United States of America
or to United States corporations or other entities;
(d) Any particulars which the central Swedish authorities may obtain
from inventories in the case of property passing on death, concerning
debts contracted with individuals resident of the United States of
America, or United States corporations or other entities;
(e) A list of the names and addresses of all United States citizens
resident in the United States of America who have made declarations to
the Central Committee in Stockholm in charge of the taxation of
taxpayers not resident in Sweden for purposes of the Swedish tax on
income and property;
(f) Particulars concerning annuities and pensions, public or
private, paid to individuals resident in the United States of America.
Article XVII
Each contracting State undertakes, in the case of citizens or
corporations or other entities of the other contracting State, to lend
assistance and support in the collection of the taxes to which the
present Convention relates, together with interest, costs, and additions
to the taxes and fines not being of a penal character. The contracting
State making such collection shall be responsible to the other
contracting State for the sums thus collected.
In the case of applications for enforcement of taxes, revenue claims
of each of the contracting States which have been finally determined
shall be accepted for enforcement by the other contracting State and
collected in that State in accordance with the laws applicable to the
enforcement and collection of its own taxes. The State to which
application is made shall not be required to enforce executory measures
for which there is no provision in the law of the State making the
application.
The applications shall be accompanied by such documents as are
required by the laws of the State making the application to establish
that the taxes have been finally determined.
If the revenue claim has not been finally determined the State to
which application is made may at the request of the other contracting
State, take such measures of conservancy as are authorized by the
revenue laws of the former State.
Article XVIII
The competent authority of each of the contracting States shall be
entitled to obtain, through diplomatic channels, from the competent
authority of the other contracting State, particulars in concrete cases
relative to the application to citizens or to corporations or other
entities of the former State, of the taxes to which the present
Convention relates. With respect to particulars in other cases, the
competent authority of each of the contracting States will give
consideration to requests from the competent authority of the other
contracting State.
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Article XIX
In no case shall the provisions of Article XVII, relating to mutual
assistance in the collection of taxes, or of Article XVIII, relating to
particulars in concrete cases, be construed so as to impose upon either
of the contracting States the obligation.
(1) to carry out administrative measures at variance with the
regulations and practice of either contracting State, or
(2) to supply particulars which are not procurable under its own
legislation or that of the State making application.
The State to which application is made for information or assistance
shall comply as soon as possible with the request addressed to it.
Nevertheless, such State may refuse to comply with the request for
reasons of public policy or if compliance would involve violation of a
business, industrial or trade secret or practice. In such case it shall
inform, as soon as possible, the State making the application.
Article XX
Where a taxpayer shows proof that the action of the revenue
authorities of the contracting States has resulted in double taxation in
his case in respect of any of the taxes to which the present Convention
relates, he shall be entitled to lodge a claim with the State of which
he is a citizen or, if he is not a citizen of either of the contracting
States, with the State of which he is a resident, or, if the taxpayer is
a corporation or other entity, with the State in which it is created or
organized. Should the claim be upheld, the competent authority of such
State may come to an agreement with the competent authority of the other
State with a view to equitable avoidance of the double taxation in
question.
Article XXI
The competent authorities of the two contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of this Convention. With respect to the provisions of this
Convention relating to exchange of information, service of documents and
mutual assistance in the collection of taxes, such authorities may, by
common agreement, prescribe rules concerning matters of procedure, forms
of application and replies thereto, conversion of currency, disposition
of amounts collected, minimum amounts subject to collection and related
matters.
Article XXII
The present Convention shall be ratified, in the case of the United
States of America, by the President, by and with the advice and consent
of the Senate, and in the case of Sweden, by His Majesty the King, with
the consent of the Riksdag. The ratifications shall be exchanged at
Stockholm.
This Convention shall become effective on the first day of January
following the exchange of the instruments of ratification and shall
apply to income realized and property held on or after that date. The
Convention shall remain in force for a period of five years and
indefinitely thereafter but may be terminated by either contracting
State at the end of the five-year period or at any time thereafter,
provided at least six months' prior notice of termination has been
given, the termination to become effective on the first day of January
following the expiration of the six-month period.
In witness whereof the respective Plenipotentiaries have signed this
Convention and have affixed their seals hereto.
Done in duplicate, in the English and Swedish languages, both
authentic, at Washington, this twenty-third day of March, nineteen
hundred and thirty-nine.
For the President of the United States of America:
Sumner Welles [seal]
For His Majesty the King of Sweden:
W. Bostrom [seal]
Protocol
At the moment of signing the Convention for the avoidance of double
taxation, and the establishment of rules of reciprocal administrative
assistance in the case of income and other taxes, this day concluded
between the United States of America and Sweden, the undersigned
Plenipotentiaries have agreed that the following provisions shall form
an integral part of the Convention:
1. As used in this Convention:
(a) The term ``permanent establishment'' includes branches, mines
and oil wells, plantations, factories, workshops, warehouses, offices,
agencies, installations, and other fixed places of business of an
enterprise but does not include the casual or temporary use of merely
storage facilities. A permanent establishment of a subsidiary
corporation shall not be deemed to be a permanent establishment of the
parent corporation. When an enterprise of one of the contracting States
carries on business in the other State through an employee or agent,
established there, who has general authority to contract for his
employer or principal, it shall be deemed to have a permanent
establishment in the latter State. But the fact that an enterprise of
one of the contracting States has business dealings in the other State
through a bona fide commission agent, broker or custodian shall not be
held to mean that such enterprise has a permanent establishment in the
latter State.
(b) The term ``enterprise'' includes every form of undertaking
whether carried on by an individual, partnership, corporation, or any
other entity.
[[Page 125]]
(c) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``Swedish
enterprise''.
(d) The term ``United States enterprise'' means an enterprise
carried on in the United States of America by a resident of the United
States of America or by a United States corporation or other entity; the
term ``United States corporation or other entity'' means a partnership,
corporation or other entity created or organized in the United States of
America or under the law of the United States of America or of any State
or Territory of the United States of America.
(e) The term ``Swedish enterprise'' is defined in the same manner,
mutatis mutandis, as the term ``United States enterprise''.
2. The term ``corporation'' includes associations, joint-stock
companies, and insurance companies.
3. A citizen of one of the contracting States not residing in either
shall be deemed, for the purpose of this Convention, to be a resident of
the contracting State of which he is a citizen.
When doubt arises with respect to residence or with respect to the
taxable status of corporations or other entities, the competent
authorities of the two contracting States may settle the question by
mutual agreement.
4. The provisions of Swedish law concerning the taxation of the
undivided estates of deceased persons shall not apply where the
beneficiaries are directly liable to taxation in the United States of
America.
5. The term ``life annuities'' referred to in Article X of this
Convention means a stated sum payable periodically at stated times
during life, or during a specified number of years, under an obligation
to make the payments in consideration of a gross sum paid for such
obligation.
6. The Swedish so-called ``fees tax'' (bevillingsavgift for vissa
offentliga forestallningar) based on gross income in so far as it
affects such individuals as actors, artists, musicians and professional
athletes shall be deemed to be an income tax for the purposes of Article
XIV (a).
The credit for taxes provided in Article XIV shall have no
application to taxes deducted at the source from dividends and interest
except to the extent provided in paragraph (b)(2) of that Article.
In the application of the provisions of this Convention the benefits
of section 131 of the United States Revenue Act of 1938, relating to
credits for foreign taxes shall be accorded but the credit provided for
in Article XIV(a) shall not extend to United States excess-profits taxes
nor to the surtax imposed on personal holding companies.
7. Citizens of each of the contracting States residing within the
other contracting State shall not be subjected in the latter State to
other or higher taxes than are imposed upon the citizens of such latter
State.
8. The provisions of this Convention shall not be construed to deny
or affect in any manner the right of diplomatic and consular officers to
other or additional exemptions now enjoyed or which may hereafter be
granted to such officers, nor to deny to either of the contracting
States the right to subject to taxation its own diplomatic and consular
officers.
9. The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance accorded by the laws of one of the contracting States in the
determination of the tax imposed by such State.
10. In the administration of the provisions of this Convention
relating to exchange of information, service of documents, and mutual
assistance in collection of taxes, fees and costs incurred in the
ordinary course shall be borne by the State to which application is made
but extraordinary costs incident to special forms of procedure shall be
borne by the applying State.
11. Documents and other communications or information contained
therein, transmitted under the provisions of this Convention by one of
the contracting States to the other contracting State shall not be
published, revealed or disclosed to any person except to the extent
permitted under the laws of the latter State with respect to similar
documents, communications or information.
12. As used with respect to revenue claims in Article XVII of this
Convention the term ``finally determined'' shall be deemed to mean:
(a) In the case of Sweden, claims which have been finally
established, even though still open to revision by exceptional
procedure;
(b) In the case of the United States of America, claims which are no
longer appealable, or which have been determined by decision of a
competent tribunal, which decision has become final.
13. As used in this Convention the term ``competent authority'' or
``competent authorities'' means, in the case of the United States of
America, the Secretary of the Treasury and in the case of Sweden, the
Finance Ministry.
14. The term ``United States of America'' as used in this Convention
in a geographical sense includes only the States, the Territories of
Alaska and Hawaii, and the District of Columbia.
15. Should any difficulty or doubt arise as to the interpretation or
application of the present Convention, or its relationship to
Conventions between one of the contracting States and any other State,
the competent authorities of the contracting States may settle the
question by mutual agreement.
[[Page 126]]
16. The present Convention and Protocol shall not be deemed to
affect the exchange of notes between the United States of America and
Sweden providing relief from double income taxation on shipping profits,
signed March 31, 1938.
Done at Washington, this twenty-third day of March, nineteen hundred
and thirty-nine.
Sumner Welles [seal]
W. Bostrom [seal]
And where the said convention and the said protocol have been duly
ratified on both parts and the ratifications of the two Governments were
exchanged at Stockholm on the fourteenth day of November, one thousand
nine hundred and thirty-nine;
And whereas, as is provided in Article XXII, the said convention
shall become effective on the first day of January following the
exchange of the instruments of ratification;
Now, therefore, be it known that I, Franklin D. Roosevelt, President
of the United States of America, have caused the said convention and the
said protocol to be made public to the end that the same and every
article, clause and part thereof may be observed and fulfilled with good
faith by the United States of America and the citizens thereof on and
from the first day of January, one thousand nine hundred and forty.
In testimony whereof, I have hereunder set my hand and caused the
Seal of the United States of America to be affixed.
Done at the city of Washington this twelfth day of December, in the
year of our Lord one thousand nine hundred and thirty-nine, and of the
Independence of the United States of America the one hundred and sixty-
fourth.
[seal]
Franklin D Roosevelt
By the President:
Cordell Hull
Secretary of State.
(b) The Internal Revenue Code provides in part as follows:
Sec. 22. Gross Income.
* * * * *
(b) Exclusions from gross income. The following items shall not be
included in gross income and shall be exempt from taxation under this
chapter:
* * * * *
(7) Income exempt under treaty. Income of any kind, to the extent
required by any treaty obligation of the United States:
Sec. 62. Rules and Regulations.
The Commissioner, with the approval of the Secretary, shall
prescribe and publish all needful rules and regulations for the
enforcement of this chapter.
Sec. 520.102 Scope of this subpart.
(a) The primary purposes of the convention, to be accomplished on a
mutually reciprocal basis, are the avoidance of double taxation,
exchange of fiscal information complementary to those provisions of the
convention relating to avoidance of double taxation, and mutual
assistance in the collection of the taxes to which the convention
relates. The regulations in this subject deal primarily with the effect
of the convention upon the determination of taxable income from sources
within the United States of nonresident alien individuals resident in
Sweden and of Swedish corporations and other Swedish entities, and with
the information to be made available to the Finance Minister of Sweden.
(b) The specific classes of income from sources within the United
States exempt by reason of the convention from United States income tax
are:
(1) Industrial and commercial profits of a Swedish enterprise having
no permanent establishment in the United States (Article II);
(2) Income derived by a Swedish enterprise from the operation of
ships or aircraft registered in Sweden (Article IV);
(3) Royalties and amounts derived by a nonresident alien individual
resident in Sweden or by a Swedish corporation or other entity as
consideration for the right to use copyrights, patents, secret processes
and formulas, trade-marks and other analogous rights (Article VI);
(4) Gains derived from the sale or exchange of capital assets by a
nonresident alien individual resident in Sweden, or by a Swedish
corporation or other entity, having no permanent establishment in the
United States (Article IX);
(5) Wages, salaries and similar compensation and pension paid by
Sweden or by a political subdivision thereof to individuals (other than
citizens of the United States) temporarily residing in the United States
(Article X);
(6) Private pensions and life annuities paid to nonresident alien
individuals residing in Sweden (Article X),
(7) Compensation for labor or personal services performed within the
United States by a nonresident alien
[[Page 127]]
individual resident in Sweden, such exemption being, however, subject to
the limitations set forth in Article XI of the convention and in
Sec. 520.113;
(8) Remittances from sources within Sweden (if and to the extent
that they constitute gross income without regard to this convention)
received in the United States by a nonresident alien individual resident
of Sweden who is temporarily resident in the United States for the
purposes of study or for acquiring business experience, such remittances
being for the purposes of their maintenance or studies (Article XII).
(c) The convention does not affect the liability to United States
income tax of Swedish citizens resident in the United States except to
the extent such citizens are entitled to the benefits of Article XIV of
the convention. For the purposes of the convention, an individual
resident in neither Sweden nor the United States and claiming the
benefits of the convention as a citizen of Sweden shall be deemed to be
a resident of Sweden if it is shown to the satisfaction of the
Commissioner that he is such citizen. With respect to dividends and
interest, see Sec. 520.10.
(d) Except as to those items of income expressly exempted by the
convention, the income tax liability of a nonresident alien individual
resident of Sweden and of a Swedish corporation or other entity is
determined in accordance with the provisions of the internal revenue
laws of the United States and the regulations thereunder applicable
generally to the taxation of nonresident alien individuals and foreign
corporations.
(e) Except insofar as concerns dividends, the convention makes no
reference to rates of taxation imposed by the United States.
Sec. 520.103 Definitions.
(a) Any word or term used in this subpart which is defined in the
convention shall be given the definition assigned to such word or term
in such convention. Any word or term used in this subpart which is not
defined in the convention but is defined in the Internal Revenue Code
shall be given the definition contained therein.
(b) As used in this subpart:
(1) The term ``permanent establishment'' includes branches, mines
and oil wells, plantations, factories, workshops, warehouses, offices,
agencies, installations and other fixed places of business of an
enterprise but does not include the casual or temporary use of merely
storage facilities. A Swedish parent corporation having a subsidiary
corporation which latter corporation has a permanent establishment in
the United States will not be deemed, by reason of such fact, to have
itself a permanent establishment in the United States. A Swedish
enterprise as defined in the convention carrying on business in the
United States through an employee or agent, established in the United
States, who has general authority to contract for his employer or
principal, shall be deemed to have a permanent establishment in the
United States. However, business dealings in the United States by a
Swedish enterprise through a bona fide commission agent, broker or
custodian do not constitute a permanent establishment in the United
States.
(2) The term ``enterprise'' means any commercial or industrial
undertaking whether conducted by an individual, partnership, corporation
or any other entity. It includes such activities as manufacturing,
merchandising, mining, banking and insurance. It does not include the
operation of, or the trading in, real property located in the United
States. It does not include the rendition of personal services. Hence, a
nonresident alien individual, a resident of Sweden, rendering personal
services within the United States, is not merely by reason of such
services, engaged in an enterprise within the meaning of the convention
and his liability to Federal income tax is unaffected by Article II of
the convention.
(3) The term ``Swedish enterprise'' means an enterprise carried on
in Sweden by a nonresident alien individual resident in Sweden or by a
Swedish corporation or other entity. The term ``Swedish corporation or
other entity'' means a partnership, corporation or other entity created
or organized in Sweden or under the laws of Sweden. For example, an
enterprise carried on wholly without Sweden by a nonresident alien
individual resident in
[[Page 128]]
Sweden is not a Swedish enterprise within the meaning of the convention.
(4) The term ``industrial and commercial profits'' means the profits
arising from the industrial, mercantile, manufacturing or like
undertakings of a Swedish enterprise as defined in this section. Such
term does not include dividends, interest, compensation for labor or
personal services, or income derived from real property or from any
interest in such property, including rentals and royalties therefrom and
gain from the sale or disposition thereof. Such latter items of income
are not governed by the provisions of Article II but are subject to the
rules elsewhere set forth in the convention and in this subpart with
respect to such specific items of income. As to gains from the sale or
exchange of capital assets, see Sec. 520.111.
Sec. 520.104 Scope of convention with respect to determination of ``industrial and commercial profits'' of a nonresident alien individual resident of Sweden or
of a Swedish corporation or other entity carrying on a Swedish
enterprise in the United States.
(a) General. Article II of the convention adopts the principle that
an enterprise of one of the contracting States shall not be taxable in
the other contracting State in respect of its industrial and commercial
profits unless it has a permanent establishment in the latter State.
Hence, a Swedish enterprise is subject to tax upon its industrial and
commercial profits from sources within the United States only if it has
a permanent establishment within the United States. From the standpoint
of Federal income taxation, the article has application only to a
Swedish enterprise and to the industrial and commercial income thereof
from sources within the United States. It has no application, for
example, to compensation for labor or personal services performed in the
United States nor to income derived from real property located in the
United States nor to any interest in such property, including rentals
and royalties therefrom, nor to gains from the sale or disposition
thereof nor to dividends and interest. Such latter items of income are
treated separately elsewhere in the regulations in this subpart and are
subject to the rules laid down in the sections having specific reference
to the respective items of income: As to what is a ``Swedish
enterprise'', a ``permanent establishment'' and ``industrial and
commercial profits,'' see Sec. 520.103.
(b) No United States permanent establishment. A nonresident alien
individual resident in Sweden or a Swedish corporation or other entity,
carrying on a Swedish enterprise but having no permanent establishment
in the United States is not subject to United States income tax upon
industrial and commercial profits from sources within the United States.
For example, if such Swedish corporation sells stock in trade such as
iron ore or wood pulp through a bona fide commission agent or broker in
the United States, the resulting profit is, under the terms of Article
II of the convention, exempt from United States income tax. Such Swedish
corporation, however, remains subject to tax upon all other items of
income from sources within the United States and not expressly exempted
from such tax under the convention. However, see Secs. 520.109, 520.111,
520.112 and 520.113.
(c) United States permanent establishment. A nonresident alien
individual resident in Sweden or a Swedish corporation or other entity,
carrying on a Swedish enterprise having a permanent establishment in the
United States is subject to tax upon his or its industrial and
commercial profits from sources within the United States. In the
determination of the income of such resident of Sweden or Swedish
corporation or other entity from sources within the United States, all
industrial and commercial profits from sources within the United States
shall be deemed to be allocable to the permanent establishment within
the United States. The net income from sources within the United States,
including the industrial and commercial profits, shall be determined in
accordance with the provisions of section 119, Internal Revenue Code,
and regulations thereunder. In determining such income, no account shall
be taken of the mere purchase of merchandise effected in the United
States by such Swedish enterprise.
[[Page 129]]
Sec. 520.105 Control of a domestic enterprise by a Swedish enterprise.
Article III of the convention provides that if a Swedish enterprise
by reason of its control of a domestic business imposes conditions
different from those which would result from normal bargaining between
independent enterprises, the accounts between the enterprises will be
adjusted so as to ascertain the true net income of the domestic
enterprises. The purpose is to place the controlled domestic enterprise
on a tax parity with an uncontrolled domestic enterprise by determining,
according to the standard of an uncontrolled enterprise, the true net
income from the property and business of the controlled enterprise. The
convention contemplates that if the accounting records do not truly
reflect the net income from the property and business of such domestic
enterprise the Commissioner shall intervene and, by making such
distributions, apportionments or allocations as he may deem necessary of
gross income or deductions or of any item or element affecting net
income as between such domestic enterprise and the Swedish enterprise by
which it is controlled or directed, determine the true net income of the
domestic enterprise. The provisions of Regulations 103 (26 CFR 1938 ed.
Supps. 19.45-1), [Regulations 111 (26 CFR 1949 ed. Supps. 29.45-1) and
Regulations 118 (Sec. 39.45-1, 26 CFR, Rev. 1953, Parts 1-79, and
Supps.)] shall, insofar as applicable, be followed in the determination
of the net income of the domestic business.
Sec. 520.106 Income from operation of ships or aircraft.
The income derived by a Swedish enterprise from the operation of
ships or aircraft registered in Sweden is exempt from United States
income tax. However, the profits derived by such enterprise from the
operation of ships or aircraft not so registered are treated as are
industrial and commercial profits generally. See Article II of the
convention and Sec. 520.104.
Sec. 520.107 Income from real property.
Income of whatever nature derived by a nonresident alien individual
resident in Sweden or by a Swedish corporation or other entity from real
property situated in the United States, including gains derived from the
sale of such property, is not exempt from taxation by the convention.
The treatment of such income for taxation purposes is governed by those
provisions of the Internal Revenue Code applicable generally to the
taxation of nonresident aliens and foreign corporations. Interest
derived from mortgages or bonds secured by real property does not
constitute income from real property within the meaning of the
convention but is subject to the provisions applicable to interest
generally. See Article VIII of the convention and Sec. 520.110.
Sec. 520.108 Mineral royalties.
Royalties derived by a nonresident alien individual resident in
Sweden or by a Swedish corporation or other entity from real property or
in respect of the operation of mines, quarries, timber or other natural
resources situated in the United States are not exempt from taxation
under the convention. Such items of income are subject to taxation under
the provisions of the Internal Revenue Code applicable generally to the
taxation of nonresident aliens and foreign corporations.
Sec. 520.109 Patent and copyright royalties.
(a) Royalties and amounts derived from sources within the United
States by a nonresident alien individual resident in Sweden or by a
Swedish corporation or other entity (if such corporation or entity is
not a resident of the United States) as consideration for the right to
use copyrights, patents, secret processes and formulas, trade-marks and
other analogous rights are exempt from Federal income taxation under the
provisions of Article VI of the convention. Such items are therefore not
subject to the withholding provisions of the Internal Revenue Code. Such
exemption does not, however, apply in the case of a Swedish corporation
engaged in trade or business within the United States or having an
office or place of business therein. Such corporation is a resident
Swedish corporation and hence the provisions of Article XIV (a) are
applicable.
[[Page 130]]
(b) To obviate withholding of the tax at the source, the alien
individual resident in Sweden or Swedish corporation or other entity
should by letter, notify the payor of the income that such income is
exempt from Federal income is exempt from Federal income taxation under
the provisions of the convention. Such letter from such resident of
Sweden shall contain his address and a statement that he is a resident
of Sweden. The letter from such corporation or other entity shall
contain the address of its office or place of business and a statement
that it is a corporation or other entity organized under the laws of
Sweden and shall be signed by an officer of the corporation or other
entity giving his official title. The letter of notification of a copy
thereof should be immediately forwarded by the recipient to the
Commissioner of Internal Revenue, Withholding Returns Section,
Washington 25, D.C., United States of America.
Sec. 520.110 Dividends and interest.
(a) In general dividends derived from sources within the United
States by a nonresident alien individual resident in Sweden or by a
Swedish corporation or other entity remain subject to taxation under the
provisions of the Internal Revenue Code applicable generally to the
taxation of nonresident alien individuals and foreign corporations. See
Article XIV (a) of the convention. However, for a period of at least 2
years beginning on January 1, 1940, the tax in the case of such alien
individual resident in Sweden or such Swedish corporation or other
entity (nonresident as to the United States) shall not exceed 10 percent
of the amount of such dividends. See Article VII of the convention.
Hence, the higher rates applicable generally in the case of nonresident
alien individuals subject to the provisions of section 211 (c), Internal
Revenue Code, are not applicable to dividends received by nonresident
alien individuals who are residents of Sweden.
(b) The taxation of interest derived from sources within the United
States by a nonresident alien individual resident in Sweden or by a
Swedish corporation or other entity is not affected by the convention
except that in the case of such individual such interest is subject only
to the rate of tax imposed by section 211 (a), Internal Revenue Code.
Hence, interest, like dividends, is excluded for the purposes of section
211(c), from the gross amount of fixed or determinable annual or
periodical income of nonresident alien individuals who are residents of
Sweden.
Sec. 520.111 Capital gains.
Under Article IX of the convention, gain derived from the sale or
exchange of capital assets (other than real property) within the United
States by a nonresident alien individual resident in Sweden or by a
Swedish corporation or other entity is exempt from Federal income tax
unless such individual, corporation or other entity has a permanent
establishment in the United States. With respect to real property, see
Sec. 520.107.
Sec. 520.112 Wages, salaries and similar compensation, pensions and life annuities.
(a) Under Article X of the convention, wages, salaries and similar
compensation and pensions paid by Sweden or by a political subdivision
thereof to individuals temporarily residing in the United States are
exempt from Federal income tax. By reason, however, of the application
of Article XIV(a) of the convention, such exemption does not apply to
recipients of such income who are either citizens of the United States
or aliens resident therein. As to who are resident aliens, see
Regulations 103 (26 CFR 1938 ed. Supps. 19.211-2 to 19.211-4),
[Regulations 111 (26 CFR 1949 ed. Supps. 29.211-2 to 29.211-4) and
Regulations 118 (Secs. 39.211-2 to 39.211-4, 26 CFR, Rev. 1953, Parts 1-
79, and Supps.)]. As to the taxation generally of the compensation of
employees of foreign governments, see section 116(h) of the Internal
Revenue Code and Regulations 103 (26 CFR 1938 ed. Supps. 19.116-2),
[Regulations 111 (26 CFR 1949 ed. Supps. 29.116-2) and Regulations 118
(Sec. 39.116-2, 26 CFR Rev. 1953, Parts 1-79, and Supps.)].
(b) Under the provisions of the same article of the convention,
private pensions and life annuities derived from sources within the
United States by nonresident alien individuals residing
[[Page 131]]
in Sweden are exempt from the Federal income tax. Such items of income
are, therefore, not subject to the withholding provisions of the
Internal Revenue Code. See paragraph 5 of the protocol to the convention
as to what constitutes life annuities. See also Sec. 520.109 with
respect to patent and copyright royalties as to requirements necessary
to avoid withholding of the tax at the source, which requirements are
here also applicable.
Sec. 520.113 Compensation for labor or personal services.
(a) Article XI of the convention adopts the principle that
compensation for labor or personal services, including compensation
realized in the practice of the liberal professions, is subject to tax
only in the contracting State in which such services are rendered.
Hence, in general such compensation derived by nonresident alien
individuals residing in Sweden for services rendered in the United
States is subject to Federal income tax. Such general rule is, however,
subject to the following exceptions under the provisions of Article XI:
(1) Such nonresident alien individual is not subject to Federal
income tax upon compensation for labor or personal services performed
within the United States if the following conditions prescribed by
subparagraph (2) (i) and (ii) of this paragraph are met.
(2) He is temporarily present in the United States for a period or
periods:
(i) Not exceeding 180 days during the taxable year and his
compensation is received for labor or personal services performed as an
employee of, or under contract with, a resident of Sweden or a Swedish
corporation or other entity; or
(ii) Not exceeding 90 days during the taxable year and the
compensation received for such services does not exceed $3,000 in the
aggregate for such taxable year even though such compensation is paid by
a United States resident or by a domestic corporation or other domestic
entity.
(b) If, therefore, such nonresident alien individual (1) is
temporarily present in the United States for a period or periods in
excess of 90 days during the taxable year, or (2) receives more than
$3,000 in the aggregate during the taxable year for labor or personal
services performed within the United States he is not exempt under
paragraph (a)(2)(ii) of this section, and his right to exemption under
the convention will depend on his meeting both tests prescribed under
paragraph (a)(2)(i) of this section.
(c) These exceptions, however, do not extend to the professional
earnings of actors, artists, musicians, professional athletes and those
engaged in like activities. The professional earnings of such
individuals resident in Sweden for services rendered within the United
States are subject to the provisions of the Internal Revenue Code
applicable generally to the taxation of nonresident alien individuals.
Sec. 520.114 Remittances.
Under Article XII nonresident alien individuals residents of Sweden
who are temporarily residing in the United States exclusively for the
purposes of study or acquiring business experience and receiving
remittances from Sweden for the purposes of their maintenance and
studies in the United States are exempt from Federal income tax upon
such amounts if and to the extent that such amounts constitute gross
income.
Sec. 520.115 Scope of Article XIV.
(a) General. Article XIV (a) has an important bearing upon other
articles of the convention. While many preceding articles provide in
effect that items of income derived by citizens or residents of the
United States or by domestic corporations from sources in Sweden are
subject to tax only in Sweden, Article XIV(a) nevertheless permits the
imposition of Federal income tax upon such income in the hands of such
taxpayers. For example, Article V provides that income from real
property, including gains derived from the sale or exchange of such
property, shall be taxable only in the contracting State in which such
property is situated. Hence, looking at such article without reference
to Article XIV a United States citizen realizing such income from real
property situated within Sweden would not be subject to Federal income
tax upon such income. Article XIV(a), however, prescribes that,
[[Page 132]]
notwithstanding Article V or any other article of the convention, the
Federal income tax may apply to all items of income without regard to
other provisions of the convention and hence all items of income from
sources within Sweden, regardless of their treatment in the articles
dealing respectively with such items of income, must be included in
gross income of United States citizens, residents and corporations for
the purposes of the Federal income tax.
(b) Credit for Swedish income taxes. (1) Article XIV(a), for the
purposes of avoidance of double taxation, further provides that a
citizen or resident of the United States or a domestic corporation
deriving income from sources within Sweden shall be entitled to a credit
against the Federal income tax liability for the amount of Swedish
national income and property tax, including surtax, and for the Swedish
communal income tax. Such credit is, however, subject to the limitations
prescribed in section 131, Internal Revenue Code (relating to the credit
for foreign taxes) in that it cannot exceed the same proportion of the
tax against which the credit is taken which the taxpayer's net income
from sources within Sweden bears to the entire net income, in the case
of a taxpayer other than a corporation, or to the normal tax net income,
in the case of a corporation, for the same taxable year.
(2) In the application of Article XIV(a), the provisions of section
131, Internal Revenue Code, are in general applicable. See paragraph 6
of the protocol to the convention.
Sec. 520.116 Reciprocal administrative assistance.
(a) By Article XV of the convention, United States and Sweden adopt
the principle of exchange of information and assistance in the service
of documents incident to the collection of taxes. It is agreed that such
fiscal cooperation shall be carried out in accordance with the laws of
the respective countries and hence only such information as is available
to the Commissioner under the revenue laws may be used as a source from
which to secure the information required to be submitted to the Finance
Minister of Sweden.
(b) Pursuant to such principle, withholding agents shall, in the
preparation of withholding returns, Form 1042, report on such returns,
in addition to the items of income upon which tax has been withheld at
the source, those items of income paid to a nonresident alien individual
resident in Sweden or to a Swedish corporation or other entity upon
which tax has not been withheld at the source. (See Sec. 520.109.) Such
return shall show the same information with respect to such items of
income upon which tax has not been withheld at the source as is shown
with respect to items of income upon which the tax has been withheld at
the source.
(c) All information and correspondence relating to exchange of
information and to service of documents may be transmitted by the
Secretary directly to the Finance Minister of Sweden.
Sec. 520.117 Information to be furnished in the ordinary course.
(a) In accordance with the provisions of Article XVI (1) (a) and (b)
of the convention, the Secretary shall forward to the Finance Minister
of Sweden, Stockholm, Sweden, as soon as practicable after the close of
the calendar year 1940 and of each calendar year thereafter during which
the convention is in effect the following information relating to such
preceding calendar year:
(1) The name and address of each person whose address as disclosed
on Forms 1012 and 1042 is in Sweden deriving from sources within the
United States dividends, interest, royalties, pensions, annuities, or
other fixed or determinable annual or periodical income, showing the
amount of such income with respect to such person.
(2) The name and address of each person whose address as disclosed
by Forms 1000, 1087 and 1099 is in Sweden showing the amount of income
set forth on such form with respect to each person.
(b) In accordance with the provisions of Article XVI(1)(c) of the
convention, there shall likewise be forwarded any particulars which the
Commissioner
[[Page 133]]
may obtain incident to the determination of estate tax liability of any
decedent from inventories of assets of estates of decedents concerning
debts contracted with individuals resident in Sweden or with Swedish
corporations or other entities.
Sec. 520.118 Information in specific cases.
Under the provisions of Article XVIII of the convention and upon
request of the Finance Minister of Sweden, made through diplomatic
channels and subject to the provisions of Article XIX of the convention,
the Secretary will furnish to the Finance Minister of Sweden particulars
in case of any specific taxpayer who is a citizen of Sweden or a Swedish
corporation or other entity, relating to the application of Swedish
national income and property tax and the Swedish communal income tax. In
the case of other specific taxpayers, the Secretary will give
consideration to requests of the Finance Minister of Sweden with a view
to furnishing similar information concerning such taxpayer.
Sec. 520.119 Mutual assistance in the collection of taxes.
Under the provisions of Article XXI of the convention, the Secretary
of the Treasury and the Finance Minister of Sweden are authorized to
prescribe rules with respect to those provisions of the convention
relating to the exchange of information, service of documents, and
mutual assistance in the collection of the taxes to which the convention
relates. Such rules concerning matters of procedure, forms of
application and replies thereto, conversion of currency, disposition of
amounts collected and related matters will be made the subject matter of
a common agreement between the competent authorities of the two
contracting States concerned and when consummated will be published.
PART 521--DENMARK--Table of Contents
Subpart--Withholding of Tax
Release of Excess Tax Withheld and Reduction in Rate of Withholding
Sec.
521.1 Introductory.
521.2 Dividends.
521.3 Interest.
521.4 Patent and copyright royalties and film rentals.
521.5 Private pensions and life annuities.
521.6 Release of excess tax withheld at source.
521.7 Addressee not actual owner.
521.8 Beneficiaries of a domestic estate or trust.
Subpart--General Income Tax
Taxation of Nonresident Aliens Who Are Residents of Denmark and of
Danish Corporations
521.101 Introductory.
521.102 Applicable provisions of the Internal Revenue Code.
521.103 Scope of the convention.
521.104 Definitions.
521.105 Scope of convention with respect to determination of
``industrial or commercial profits''.
521.106 Control of a domestic enterprise by a Danish enterprise.
521.107 Income from operation of ships or aircraft.
521.108 Exemption from, or reduction in rate of, United States tax in
the case of dividends, interest and royalties.
521.109 Real property income, natural resource royalties.
521.110 Government wages, salaries, pensions and similar remuneration.
521.111 Pensions and life annuities.
521.112 Compensation for labor or personal services.
521.113 Students and apprentices; remittances.
521.114 Visiting professors or teachers.
521.115 Credit against United States tax liability for Danish tax.
521.116 Reciprocal administrative assistance.
521.117 Claims in cases of double taxation.
Authority: 26 U.S.C. 62, 143, 144, 211, and 231.
Subpart--Withholding of Tax
Source: Treasury Decision 5692, 14 FR 1123, Mar. 12, 1949, unless
otherwise noted. Redesignated at 25 FR 14022, Dec. 31, 1960.
Effective Date Note: By T.D. 8732, 62 FR 53498, Oct. 14, 1997,
Subpart--Withholding of Tax, consisting of Secs. 521.1 through 521.8 was
removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31,
1998, the effective date was delayed until Jan. 1, 2000.
[[Page 134]]
Release of Excess Tax Withheld and Reduction in Rate of Withholding
Sec. 521.1 Introductory.
(a) The income tax convention between the United States and the
Kingdom of Denmark, signed May 6, 1948, proclaimed by the President of
the United States on December 8, 1948, and effective as to taxable years
beginning after December 31, 1947 (referred to in this subpart as the
convention), provides in part as follows:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America: The Federal income
tax, including surtaxes.
(b) In the case of Denmark:
The national income tax, including the war profits tax.
The intercommunal income tax.
The communal income tax.
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed by either contracting State
subsequently to the date of signature of the present Convention.
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense includes only the States, the
Territories of Alaska and Hawaii, and the District of Columbia.
(b) The term ``Denmark'' means the Kingdom of Denmark; the
provisions of the Convention shall not, however, extend to the Faroe
Islands; nor do they apply to Greenland.
(c) The term ``permanent establishment'' means a branch office,
factory, warehouse or other fixed place of business, but does not
include the casual and temporary use of merely storage facilities, nor
does it include an agency unless the agent has and exercises a general
authority to negotiate and conclude contracts on behalf of an enterprise
or has a stock of merchandise from which he regularly fills orders on
its behalf. An enterprise of one of the contracting States shall not be
deemed to have a permanent establishment in the other State merely
because it carries on business dealings in such other State through a
bona fide commission agent, broker or custodian acting in the ordinary
course of his business as such. The fact that an enterprise of one of
the contracting States maintains in the other State a fixed place of
business exclusively for the purchase of goods or merchandise shall not
of itself constitute such fixed place of business a permanent
establishment of such enterprise. The fact that a corporation of one
contracting State has a subsidiary corporation which is a corporation of
the other State or which is engaged in trade or business in the other
State shall not of itself constitute that subsidiary corporation a
permanent establishment of its parent corporation.
(d) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``Danish
enterprise.''
(e) The term ``enterprise'' includes every form of undertaking
whether carried on by an individual, partnership, corporation, or any
other entity.
(f) The term ``United States enterprise'' means an enterprise
carried on in the United States of America by a resident of the United
States of America or by a United States corporation or other entity; the
term ``United States corporation or other entity'' means a partnership,
corporation or other entity created or organized in the United States of
America or under the law of the United States of America or of any State
or Territory of the United States of America.
(g) The term ``Danish enterprise'' means an enterprise carried on in
Denmark by a resident of Denmark or by a Danish corporation or other
entity; the term ``Danish corporation or other entity'' means a
partnership, corporation or other entity created or organized in Denmark
or under Danish laws.
(h) The term ``competent authorities'' means, in the case of the
United States the Commissioner of Internal Revenue or his authorized
representative; and in the case of Denmark, the Chief of the Taxation
Department of the Ministry of Finance (Generaldirektren for
Skattevaesenet) or his authorized representative.
(2) In the application of the provisions of the present Convention
by one of the contracting States any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which such term
has under its own tax laws.
* * * * *
Article VI
(1) Dividends shall be taxable only in the contracting State in
which the shareholder is resident or, if the shareholder is a
corporation or other entity, in the contracting State in which such
corporation or other entity is incorporated or organized.
(2) Each of the contracting States reserves, however, the right to
collect and retain the tax, which, under its revenue laws, is deductible
at the source with respect to such dividends, but the tax shall not
exceed 15 percent of the amount of dividends derived from sources within
such State by a resident, corporation or other entity of the other
State,
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if the recipient has no permanent establishment in the contracting State
from which the dividends are derived.
(3) It is agreed, however, that the rate of dividend tax at the
source shall not exceed five percent if the shareholder is a corporation
controlling, directly or indirectly, at least 95 percent of the entire
voting power in the corporation paying the dividend, and if not more
than 25 percent of the gross income of such paying corporation is
derived from interest and dividends, other than interest and dividends
received from its own subsidiary corporations. Such reduction of the
rate of five percent shall not apply if the relationship of the two
corporations has been arranged or is maintained primarily with the
intention of securing such reduced rate.
Article VII
Interest on bonds, securities, notes, debentures, or on any other
form of indebtedness derived from sources within one of the contracting
States by a resident or corporation or other entity of the other
contracting State not having a permanent establishment in the former
State shall be exempt from tax by such former State.
Article VIII
Royalties and other amounts derived as consideration for the right
to use copyrights, patents, designs, secret processes and formulas,
trade-marks and other like property (including rentals and like payments
in respect of motion picture films) derived from sources within one of
the contracting States by a resident or corporation or other entity of
the other contracting State not having a permanent establishment in the
former State shall be exempt from taxation in such former State.
* * * * *
Article X
* * * * *
(2) Private pensions and life annuities derived from within one of
the contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
(3) The term ``life annuities'' as used herein means a stated sum
payable periodically at stated times during life, or during a specified
number of years, under an obligation to make the payments in
consideration of a gross sum paid for such obligation.
* * * * *
Article XXII
The competent authorities of the two contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of this Convention. With respect to the provisions of this
Convention relating to exchange of information and mutual assistance in
the collection of taxes, such authorities may, by common agreement,
prescribe rules concerning matters of procedure, forms of application
and replies thereto, conversion of currency, disposition of amounts
collected, minimum amounts subject to collection and related matters.
Article XXIII
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Washington as soon as possible.
(2) Upon the exchange of instruments of ratification, the present
Convention shall have effect.
(a) in the case of United States tax, for the taxable years
beginning on or after the first day of January of the year in which such
exchange takes place;
(b) in the case of Danish tax, for the taxable years beginning on or
after the first day of April of the year in which such exchange takes
place.
(3) The present Convention shall continue effective for a period of
five years and indefinitely after that period, but may be terminated by
either of the contracting States at the end of the five-year period or
at any time thereafter, provided that at least six months' prior notice
of termination has been given and, in such event, the present Convention
shall cease to be effective.
(a) As respects United States tax, for the taxable years beginning
on or after the first day of January next following the expiration of
the six-month period;
(b) As respects Danish tax, for the taxable years beginning on or
after the first day of April next following the expiration of the six-
month period.
* * * * *
(b) As used in this subpart, unless the context otherwise requires,
the terms defined in the above articles of the convention shall have the
meanings so assigned to them.
Sec. 521.2 Dividends.
(a) General. The rate of tax imposed by section 211(a) of the
Internal Revenue Code (relating to nonresident alien individuals not
engaged in trade or business within the United States) and by section
231(a) of the Internal
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Revenue Code (relating to foreign corporations not engaged in trade or
business within the United States) is 30 percent. Such rate is reduced
under Article VI of the convention to 15 percent in the case of
dividends received on or after January 1, 1948, from sources within the
United States by a nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) who is a resident of Denmark or
by a Danish corporation if such alien or corporation at no time during
the taxable year had a permanent establishment within the United States.
As to what is a Danish corporation, see Article II(1)(g) of the
convention. Thus, if a nonresident alien who is a resident of Denmark
performs personal services within the United States during the calendar
year 1948, but has at no time during such year a permanent establishment
within the United States, he is entitled to the reduced rate of tax with
respect to dividends derived in that year from United States sources, as
provided in Article VI of the convention, even though by reason of his
having rendered personal services within the United States he is engaged
in trade or business therein in that year within the meaning of section
211(b) of the Internal Revenue Code. As to what constitutes a permanent
establishment, see Article II(1)(c) of the convention.
(b) Dividends paid by a United States subsidiary corporation. (1)
Under the provisions of Article VI (3) of the convention, dividends paid
by a domestic corporation to a Danish corporation controlling, directly
or indirectly, at the time the dividend is paid, 95 percent or more of
the entire voting power in such domestic corporation, are subject to tax
at the rate of only 5 percent, if (i) not more than 25 percent of the
gross income of such paying corporation for the three-year period
immediately preceding the taxable year in which the dividend is paid
consists of dividends and interest (other than dividends and interest
paid to such domestic corporation by its own subsidiary corporations, if
any, and (ii) the relationship between such domestic corporation and
such Danish corporation has not been arranged or maintained primarily
with the intention of securing such reduced rate of 5 percent.
(2) Any domestic corporation which claims or contemplates claiming
that dividends paid or to be paid by it on or after January 1, 1948, are
subject only to the 5 percent rate shall file, as soon as practicable,
with the Commissioner of Internal Revenue, the following information:
(i) the date and place of its organization; (ii) the number of
outstanding shares of stock of the domestic corporation having voting
power and the voting power thereof; (iii) the person or persons
beneficially owning such stock of the domestic corporation and their
relationship to the Danish corporation; (iv) the amount of gross income,
by years, of the paying corporation for the three-year period
immediately preceding the taxable year in which the dividend is paid;
(v) the amount of interest and dividends, by years, included in the
gross income of such domestic corporation and the amount of interest and
dividends, by years, received by such corporation from its subsidiary
corporations, if any; and (vi) the relationship between the domestic
corporation and the Danish corporation to which it pays the dividend.
(3) As soon as practicable after such information is filed, the
Commissioner of Internal Revenue will determine whether the dividends
concerned fall within the provisions of Article VI (3) of the convention
and may authorize the release of excess tax withheld with respect to
dividends which come within such provision. In any case in which the
Commissioner of Internal Revenue has notified such domestic corporation
that the dividends come within such provision, the reduced rate of 5
percent applies to any dividends subsequently paid by such corporation
to the Danish corporation unless the stock ownership of the domestic
corporation, or the character of its income, materially changes, and, if
such change or changes occur, such corporation shall promptly notify the
Commissioner of Internal Revenue of the then existing facts with respect
to such stock ownership or income.
(c) Effect on withholding in case of dividends of address in
Denmark. For the purposes of withholding of the tax in
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the case of dividends, every nonresident alien (including a nonresident
alien individual, fiduciary or partnership) whose address is in Denmark
shall be deemed by United States withholding agents to be a resident of
Denmark not having a permanent establishment in the United States and
every corporation whose address is in Denmark shall be deemed by such
withholding agents to be a Danish corporation not having a permanent
establishment in the United States.
(d) Rate of withholding. (1) On and after January 1, 1949,
withholding in the case of dividends paid to nonresident aliens
(including a nonresident alien individual, fiduciary or partnership) and
to foreign corporations, whose addresses are in Denmark, shall (except
(i) in any case in which prior to the date of payment of such dividend,
the Commissioner of Internal Revenue has notified the paying corporation
that such dividend falls within the provisions of Article VI (3) of the
convention, and (ii) in any case in which the Commissioner notifies the
withholding agent that the reduced rate shall not apply), be at the rate
of 15 percent.
(2) The preceding provisions relative to residents of Denmark and to
Danish corporations are based upon the assumption that the payee of the
dividend is the actual owner of the capital stock from which the
dividend is derived and consequently is the person liable to the tax
upon such dividend. As to action by the recipient who is not the owner
of the dividend, see Sec. 521.7.
Sec. 521.3 Interest.
(a) General. Interest, whether on bonds, securities, notes,
debentures, or any other form of indebtedness (including interest on
obligations of the United States and on obligations of instrumentalities
of the United States), received on or after January 1, 1948, from
sources within the United States by (1) a nonresident alien (including a
nonresident alien individual, fiduciary, and partnership) who is a
resident of Denmark, or (2) a Danish corporation, is exempt from United
States tax under the provisions of Article VII of the convention if such
alien or corporation at no time during the taxable year in which such
interest is so received had a permanent establishment in the United
States. Such interest is, therefore, not subject to the withholding
provisions of the Internal Revenue Code.
(b) Exemption from withholding. (1) To obviate withholding at the
source in the case of coupon bond interest, the nonresident alien
resident in Denmark or the Danish corporation shall submit Form 1001-D,
in duplicate, to the paying agent with each presentation of interest
coupons. Such form shall be signed by the owner of the interest, trustee
or agent, and shall show the name and address of the obligor, and the
name and address of the owner of such interest and the amount of such
interest. Such form shall contain a statement that the owner is a
resident of Denmark or a Danish corporation and that such owner has no
permanent establishment in the United States.
(2) The exemption from United States tax contemplated by Article VII
of the convention, insofar as it concerns coupon bond interest, is an
exemption applicable only to the owner of such interest. The person
presenting such coupon or on whose behalf it is presented shall, for the
purpose of the exemption, be deemed to be the owner of the interest only
if he is, at the time the coupon is presented for payment, the owner of
the bond from which the coupon has been detached. If the person
presenting the coupon is not the owner of the bond, Form 1001, and not
Form 1001-D, shall be executed.
(3) The original and duplicate ownership certificates, Form 1001-D,
must be forwarded to the Commissioner with the quarterly return, Form
1012, as provided in existing regulations with respect to Form 1001. See
Sec. 29.143-7 of Regulations 111 (26 CFR 1949 ed. Supps. 29.143-7) [and
Sec. 39.143-7 of Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and
Supps.)]. Form 1001-D need not be listed on Form 1012.
(4) In the case of interest coupons presented in Denmark by a
nonresident alien who is not a resident of Denmark or by a foreign
corporation other than a Danish corporation, ownership certificates,
Form 1001, shall be filed as provided in existing regulations without
reference to the provisions of the
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convention. See Sec. 29.143-4 of Regulations 111 (26 CFR 1949 ed. Supps.
29.143-4) [and Sec. 39.143-4 of Regulations 118 (26 CFR, Rev. 1953,
Parts 1-79, and Supps.)].
(5) To avoid withholding at the source in the case of interest other
than interest payable by means of coupons, the nonresident alien who is
a resident of Denmark, or the Danish corporation, shall file Form 1001A-
D, in duplicate, with the withholding agent in the United States. Such
form shall be signed by the owner of the income, trustee or agent, and
shall show the name and address of the obligor and the name and address
of the owner of such interest. Such form shall contain a statement that
the owner is a resident of Denmark or is a Danish corporation and that
the owner has no permanent establishment in the United States.
(6) Form 1001A-D must be filed for each three calendar year period
and the first such form filed by the taxpayer with any withholding agent
should be filed not later than 20 days preceding the date of the first
payment of income in such period. If the taxpayer files such form with
the withholding agent in the calendar year 1948 or in any subsequent
calendar year no additional Form 1001A-D need be filed prior to the end
of the two calendar years immediately following the calendar year in
which such form is so filed unless the Commissioner notifies the
withholding agent that an additional Form 1001A-D must be filed by the
taxpayer at any earlier date. The duplicate of Form 1001A-D should be
immediately forwarded by the withholding agent to the Commissioner of
Internal Revenue, Records Division, Washington 25, D.C.
Sec. 521.4 Patent and copyright royalties and film rentals.
(a) Royalties and other like amounts received on or after January 1,
1948, by (1) a nonresident alien (including a nonresident alien
individual, fiduciary, and partnership) who is a resident of Denmark or
(2) a Danish corporation, as consideration for the right to use
copyrights, patents, designs, secret processes and formulae, trademarks,
and other like property, including rentals and like payments in respect
of motion picture films, are exempt from United States tax under the
provisions of Article VIII of the convention if such alien or
corporation had at no time during the taxable year in which such royalty
or other amount was so received a permanent establishment in the United
States. Such items are, therefore, not subject to the withholding
provisions of the Internal Revenue Code. As to what constitutes a
permanent establishment, see Article II(1)(c) of the convention.
(b) To obviate withholding at the source, the nonresident alien who
is a resident of Denmark, or the Danish corporation shall file Form
1001A-D, in duplicate, with the withholding agent in the United States.
Such form shall be signed by the owner of the income, trustee or agent
and shall contain the statements provided on such form with respect to
interest as set forth in Sec. 521.3, the provisions of which with
respect to the effective period of such form are equally applicable with
respect to the income falling within the scope of this section. The
duplicate copy of Form 1001A-D should be immediately forwarded by the
withholding agent to the Commissioner of Internal Revenue, Records
Division, Washington 25, D.C.
Sec. 521.5 Private pensions and life annuities.
(a) Under Article X(2) of the convention private pensions and life
annuities derived on or after January 1, 1948, from sources within the
United States by a nonresident alien individual who is a resident of
Denmark are exempt from United States tax.
(b) The person paying such income should be notified by letter from
the resident of Denmark that the income is exempt from taxation under
the provisions of Article X(2) of the convention. Such letter shall
contain the address of the individual and a statement that such
individual is a resident of Denmark. The letter of notification, or a
copy thereof, should be immediately forwarded by the recipient to the
Commissioner of Internal Revenue, Records Division, Washington 25, D.C.
Such letter shall constitute authorization to the payor of the income to
pay such income without deduction of the tax at
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the source unless the Commissioner subsequently notifies such payor that
the tax should be withheld with respect to payments made after such
notification.
Sec. 521.6 Release of excess tax withheld at source.
(a) General. (1) In order to bring the convention into force and
effect at the earliest practicable date:
(i) The reduced rate of tax of 15 percent to be withheld at the
source on dividends, and
(ii) Exemption from tax otherwise withheld at the source on
interest, patent royalties, copyright royalties, film rentals and the
like,
are hereby made effective beginning January 1, 1948 in any case in which
such dividends, interest, patent royalties, copyright royalties, film
rentals and the like are derived from sources within the United States
by a nonresident alien including a nonresident alien individual,
fiduciary and partnership who is a resident of Denmark, or a Danish
corporation.
(2) Accordingly, in the case of dividends paid to a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) whose address at the time of payment was in Denmark, or to
a Danish corporation whose address at the time of payment was in
Denmark, where tax at the rate of 30 percent has been withheld on or
after January 1, 1948, from dividends, there shall be released by the
withholding agent and paid over to the person from whom it was withheld
an amount equal to 15 percent of such dividends.
(3) In the case of every such taxpayer who furnishes to the
withholding agent Form 1001-D, as prescribed in Sec. 521.3 or 521.4,
where tax at the rate of 30 percent has been withheld on or after
January 1, 1948, there shall be released by the withholding agent and
paid over to the person from whom withheld an amount equal to the amount
so withheld in the case of interest (as to coupon bond interest, see
paragraph (4) of this paragraph), patent royalties, copyright royalties,
film rentals and the like.
(4) In the case of every such taxpayer who furnishes to the
withholding agent Form 1001-D, in duplicate, where tax at the rate of 28
percent or 30 percent, as the case may be, has been withheld on or after
January 1, 1948, from coupon bond interest, there shall be released by
the withholding agent and paid over to the person from whom it was
withheld an amount equal to the tax withheld from such interest. Form
1001-D used for this purpose should be clearly marked ``Substitute'' in
order to replace Forms 1001 previously filed. One Form 1001-D, in
duplicate, may be used to replace two or more Forms 1001. The form
marked ``Substitute'' is to be used solely for the release of excess tax
withheld in 1948. The use of Form 1001-D for the purpose of exemption
upon presentation of interest coupons is set forth in Sec. 521.3 (b).
(b) Private pensions and life annuities paid in 1948 or subsequent
years. (1) In order to bring the convention into force and effect at the
earliest practicable date, the exemption from tax otherwise withheld at
the source on private pensions and life annuities is made effective
beginning January 1, 1948, in any case in which such pensions and life
annuities are derived from sources within the United States by a
nonresident alien individual who is a resident of Denmark.
(2) The person paying such income should be notified by letter from
the resident of Denmark that the income is exempt from taxation under
the provisions of Article X(2) of the convention. See Sec. 521.5. Such
letter will constitute authorization to the payor of the income to
release the tax withheld on or after January 1, 1948, with respect to
such pensions or life annuities.
(c) Subsidiary's dividends. With respect to a dividend paid on or
after January 1, 1948, by a domestic corporation to a Danish corporation
whose address is in Denmark, tax shall be withheld in accordance with
the provisions of Sec. 521.2 unless prior to the date of payment of such
dividend the Commissioner of Internal revenue has notified the paying
corporation that such dividend falls within the scope of Article VI (3)
of the convention. As soon as practicable after information required
under Sec. 521.2 (b) is filed, the Commissioner of Internal Revenue will
determine whether the dividend involved
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falls within the scope of Article VI (3) and may authorize the release
of the excess tax withheld with respect to dividends which come within
the scope of such provision.
Sec. 521.7 Addressee not actual owner.
(a) If the recipient in Denmark of any dividend from sources within
the United States is a nominee or representative through whom the
dividend flows to a person other than a person described in
Sec. 521.2(a) as being entitled to the reduced rate of 15 percent
provided in Article VI of the convention, such recipient in Denmark will
withhold an additional amount of United States tax equivalent to the
difference between the United States tax which would have been withheld
had the convention not been in effect (30 percent as at the date of
approval of this subpart) and the 15 percent withheld at the source with
respect to such dividend pursuant to Sec. 521.2.
(b) In any case in which a fiduciary or a partnership with an
address in Denmark receives, otherwise than as a nominee or
representative, a dividend from a United States corporation, if a
beneficiary of such fiduciary or a partner in such partnership is not
entitled to the reduced rate of tax provided in Article VI of the
convention, the fiduciary or partnership will withhold an additional
amount of United States tax with respect to the portion of such dividend
included in such beneficiary's or partner's net distributive share of
the income of such fiduciary or partnership, as the case may be. The
rate of the additional tax is calculated in the same manner as under
paragraph (a) of this section.
(c) The amounts so withheld by the withholding agent in Denmark
will, on or before the 15th day after the close of the calendar year
quarter in which such withholding has taken place, be deposited with the
Danish National Bank (Danmarks Nationalbank) without converting such
amounts into dollars. Each withholding agent making such deposit will
accompany such deposit with the appropriate Danish form executed as
required by the Danish National Bank. The Danish National Bank has
arranged to remit, on or before the end of the calendar month in which
such deposit is so made, by draft in United States dollars, the amounts
so deposited to the District Director of Internal Revenue, Baltimore,
Maryland, U.S.A., forwarding with such draft the appropriate Danish form
filed by the withholding agents.
Sec. 521.8 Beneficiaries of a domestic estate or trust.
A nonresident alien who is a resident of Denmark and who is a
beneficiary of a domestic estate or trust shall be entitled to the
exemption, or reduction in the rate of tax, as the case may be, provided
in Articles VI, VII and VIII if the convention with respect to
dividends, interest and royalties to the extent such item or items are
included in his distributive share of income of such estate or trust. In
such case such beneficiary must, in order to be entitled to the
exemption or reduction in the rate of tax, in the case of interest or
royalties, execute Form 1001A-D and file such form with the fiduciary of
such estate or trust in the United States.
Subpart--General Income Tax
Source: Treasury Decision 5777, 15 FR 1595, Mar. 22, 1950, unless
otherwise noted. Redesignated at 25 FR 14022, Dec. 31, 1960.
Taxation of Nonresident Aliens Who Are Residents of Denmark and of
Danish Corporations
Sec. 521.101 Introductory.
The income tax convention between the United States and the Kingdom
of Denmark, signed May 6, 1948, proclaimed (with reservations thereto)
by the President of the United States on December 8, 1948, and effective
for taxable years beginning on and after January 1, 1948 (referred to in
this subpart as the convention), provides in part as follows:
Article I
(1) The taxes referred to in this Convention are:
(a) In the case of the United States of America: The Federal income
tax, including surtaxes.
(b) In the case of Denmark:
The national income tax, including the war profits tax.
The intercommunal income tax.
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The communal income tax.
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed by either contracting State
subsequently to the date of signature of the present Convention.
Article II
(1) As used in this Convention:
(a) The term ``United States'' means the United States of America,
and when used in a geographical sense includes only the States, the
Territories of Alaska and Hawaii, and the District of Columbia.
(b) The term ``Denmark'' means the Kingdom of Denmark; the
provisions of the Convention shall not, however, extend to the Faroe
Islands; nor do they apply to Greenland.
(c) The term ``permanent establishment'' means a branch office,
factory, warehouse or other fixed place of business, but does not
include the casual and temporary use of merely storage facilities, nor
does it include an agency unless the agent has and exercises a general
authority to negotiate and conclude contracts on behalf of an enterprise
or has a stock of merchandise from which he regularly fills orders on
its behalf. An enterprise of one of the contracting States shall not be
deemed to have a permanent establishment in the other State merely
because it carries on business dealings in such other State through a
bona fide commission agent, broker or custodian acting in the ordinary
course of his business as such. The fact that an enterprise of one of
the contracting States maintains in the other State a fixed place of
business exclusively for the purchase of goods or merchandise shall not
of itself constitute such fixed place of business a permanent
establishment of such enterprise. The fact that a corporation of one
contracting State has a subsidiary corporation which is a corporation of
the other State or which is engaged in trade or business in the other
State shall not of itself constitute that subsidiary corporation a
permanent establishment of its parent corporation.
(d) The term ``enterprise of one of the contracting States'' means,
as the case may be, ``United States enterprise'' or ``Danish
enterprise''.
(e) The term ``enterprise'' includes every form of undertaking
whether carried on by an individual, partnership, corporation, or any
other entity.
(f) The term ``United States enterprise'' means an enterprise
carried on in the United States of America by a resident of the United
States of America or by a United States corporation or other entity; the
term ``United States corporation or other entity'' means a partnership,
corporation or other entity created or organized in the United States of
America or under the law of the United States of America or of any State
or Territory of the United States of America.
(g) The term ``Danish enterprise'' means an enterprise carried on in
Denmark by a resident of Denmark or by a Danish corporation or other
entity; the term ``Danish corporation or other entity'' means a
partnership, corporation, or other entity created or organized in
Denmark or under Danish laws.
(h) The term ``competent authorities'' means, in the case of the
United States, the Commissioner of Internal Revenue or his authorized
representative; and in the case of Denmark, the Chief of the Taxation
Department of the Ministry of Finance (Generaldirektoren for
Skattevaesenet) or his authorized representative.
(2) In the application of the provisions of the present Convention
by one of the contracting States any term not otherwise defined, shall,
unless the context otherwise requires, have the meaning which such term
has under its own tax laws.
Article III
(1) An enterprise of one of the contracting States shall not be
subject to taxation in the other contracting State in respect of its
industrial and commercial profits unless it is engaged in trade or
business in such other State through a permanent establishment situated
therein. If it is so engaged such other State may impose its tax upon
the entire income of such enterprise from sources within such other
State.
(2) In determining the industrial or commercial profits from sources
within the territory of one of the contracting States of an enterprise
of the other contracting State, no profits shall be deemed to arise from
the mere purchase of goods or merchandise within the territory of the
former contracting State by such enterprise.
(3) Where an enterprise of one of the contracting States is engaged
in trade or business in the territory of the other contracting State
through a permanent establishment situated therein, there shall be
attributed to such permanent establishment the industrial or commercial
profits which it might be expected to derive if it were an independent
enterprise engaged in the same or similar activities under the same or
similar conditions and dealing at arm's length with the enterprise of
which it is a permanent establishment and the profits so attributed
shall, subject to the law of such other contracting State, be deemed to
be income from sources within the territory of such other contracting
State.
Article IV
Where an enterprise of one of the contracting States, by reason of
its participation in the management or the financial
[[Page 142]]
structure of an enterprise of the other contracting State, makes with or
imposes on the latter, in their commercial or financial relations,
conditions different from those which would be made with an independent
enterprise, any profits which would normally have accrued to one of the
enterprises but by reason of those conditions have not so accrued, may
be included in the profits of that enterprise and taxed accordingly.
Article V
(1) Income which an enterprise of one of the contracting States
derives from the operation of ships or aircraft registered in that State
shall be exempt from taxation in the other contracting State.
(2) The present Convention shall not be deemed to affect the
arrangement between the United States and Denmark providing for relief
from double income taxation on shipping profits, effected by exchanges
of notes dated May 22, August 9 and 18, October 24, 25, and 28, and
December 5 and 6, in the year 1922.
Article VI
(1) Dividends shall be taxable only in the contracting State in
which the shareholder is resident or, if the shareholder is a
corporation or other entity, in the contracting State in which such
corporation or other entity is incorporated or organized.
(2) Each of the contracting States reserves, however, the right to
collect and retain the tax which, under its revenue laws, is deductible
at the source with respect to such dividends, but the tax shall not
exceed 15 percent of the amount of dividends derived from sources within
such State by a resident, corporation or other entity of the other
State, if the recipient has no permanent establishment in the
contracting State from which the dividends are derived.
(3) It is agreed, however, that the rate of dividend tax at the
source shall not exceed five percent if the shareholder is a corporation
controlling, directly or indirectly, at least 95 percent of the entire
voting power in the corporation paying the dividend, and if not more
than 25 percent of the gross income of such paying corporation is
derived from interest and dividends, other than interest and dividends
received from its own subsidiary corporations. Such reduction of the
rate to five percent shall not apply if the relationship of the two
corporations has been arranged or is maintained primarily with the
intention of securing such reduced rate.
Article VII
Interest on bonds, securities, notes, debentures, or on any other
form of indebtedness derived from sources within one of the contracting
States by a resident or corporation or other entity of the other
contracting State not having a permanent establishment in the former
State shall be exempt from tax by such former State.
Article VIII
Royalties and other amounts derived as consideration for the right
to use copyrights, patents, designs, secret processes and formulas,
trade-marks and other like property (including rentals and like payments
in respect of motion picture films) derived from sources within one of
the contracting States by a resident or corporation or other entity of
the other contracting State not having a permanent establishment in the
former State shall be exempt from taxation in such former State.
Article IX
(1) Income from real property (not including interest derived from
mortgages and bonds secured by real property) and royalties in respect
of the operation of mines, quarries, or other natural resources, shall
be taxable only in the contracting State in which such property, mines,
quarries, or other natural resources are situated.
(2) A resident or corporation of one of the contracting States
deriving any such income from sources within the other contracting State
may, for any taxable year, elect to be subject to the tax of such other
contracting State, on a net basis, as if such resident or corporation
were engaged in trade or business within such other contracting State
through a permanent establishment therein during such taxable year.
Article X
(1) Wages, salaries, and similar compensation and pensions paid by
one of the contracting States or by any other public authority within
that State to individuals residing in the other State shall be taxable
only in the former State.
(2) Private pensions and life annuities derived from within one of
the contracting States and paid to individuals residing in the other
contracting State shall be exempt from taxation in the former State.
(3) The term ``life annuities'' as used herein means a stated sum
payable periodically at stated times during life, or during a specified
number of years, under an obligation to make the payments in
consideration of a gross sum paid for such obligation.
Article XI
(1) Compensation for labor or personal services, including the
practice of the liberal professions, shall be taxable only in the
contracting State in which such services are rendered.
(2) The provisions of paragraph (1) are, however, subject to the
following exceptions:
[[Page 143]]
(a) A resident of Denmark shall be exempt from United States tax
upon compensation for labor or personal services if he is temporarily
present in the United States for a period or periods not exceeding a
total of ninety days during the taxable year and the compensation
received for such services does not exceed $3,000 in the aggregate. If,
however, his compensation is received for labor or personal services
performed as an employee of, or under contract with, a resident or
corporation or other entity of Denmark, he will be exempt from United
States tax if his stay in the United States does not exceed a total of
180 days during the taxable year.
(b) The provisions of paragraph (2)(a) of this Article shall apply
mutatis mutandis, to a resident of the United States with respect to
compensation for personal services otherwise subject to income tax in
Denmark.
(3) The provisions of this Article shall have no application to the
income to which Article X (1) relates.
Article XII
Gains derived in one of the contracting States from the sale or
exchange of capital assets by a resident or corporation or other entity
of the other contracting State shall be exempt from taxation in the
former State if such resident or corporation or other entity is not
engaged in trade or business in such former State. [This Article deleted
by reservation, see President's Proclamation hereinafter.]
Article XIII
Students or apprentices, citizens of one of the contracting States,
residing in the other contracting State exclusively for purposes of
study or for acquiring business experience, shall not be taxable in the
latter State in respect of remittances (other than their own income)
received by them from abroad for the purposes of their maintenance or
studies.
Article XIV
A professor or teacher, a resident of one of the contracting States,
who temporarily visits the territory of the other contracting State for
the purpose of teaching for a period not exceeding two years at a
university, college, school or other educational institution in the
other contracting State, shall be exempted in such other contracting
State from tax on his remuneration for such teaching for such period.
Article XV
It is agreed that double taxation shall be avoided in the following
manner:
(a) The United States in determining the income taxes, including
surtaxes, of its citizens, residents or corporations may, regardless of
any other provision of this Convention, include in the basis upon which
such taxes are imposed all items of income taxable under the revenue
laws of the United States as if this convention had not come into
effect. The United States shall, however, subject to the provisions of
section 131, Internal Revenue Code, deduct from its taxes the amount of
Danish taxes specified in Article I of this Convention.
(b) Denmark, in determining its taxes specified in Article I of this
Convention, may regardless of any other provision of this Convention,
include in the basis upon which such taxes are imposed all items of
income subject to such taxes under the taxation laws of Denmark. Denmark
shall, however, deduct from the taxes so calculated the United States
tax on income coming within the provisions of Articles III, IX, X (1),
XIII and XIV of this Convention and on earned income earned within the
United States, but in an amount not exceeding that proportion of the
Danish taxes which such income bears to the entire income subject to tax
by Denmark. Denmark will also allow as a deduction from its taxes an
amount equal to 15 percent (five percent in the case of dividends
covered by Article VI (3)) of the gross amount of dividends (reduced by
the United States tax applicable to such dividends) from sources within
the United States.
Article XVI
(1) The citizens of one of the contracting States shall not, while
resident in the other contracting State, be subjected therein to other
or more burdensome taxes than are the citizens of such other contracting
State residing in its territory. As used in this paragraph:
(a) The term ``citizens'' includes all legal persons, partnerships,
and associations created or organized under the laws in the respective
contracting States, and
(b) The term ``taxes'' means taxes of every kind or description
whether national, Federal, state, provincial or municipal.
(2) It is agreed that section 25, paragraph 5, of the Danish law No.
391 of July 12, 1946, prescribing an addition of 50 percent of the
capital increment tax on corporations in cases where more than 50
percent of the entire stock capital is owned by a single shareholder
residing outside Denmark, shall not be applicable when the shareholder
in question is a resident of the United States or a United States
corporation or other entity.
Article XVII
The competent authorities of the contracting States shall exchange
such information (being information available under the respective
taxation laws of the contracting States) as is necessary for carrying
out the provisions of the present Convention or for the prevention of
fraud or the administration of statutory provisions against tax
[[Page 144]]
avoidance in relation to the taxes which are the subject of the present
Convention. Any information so exchanged shall be treated as secret and
shall not be disclosed to any person other than those concerned with the
assessment and collection of the taxes which are the subject of the
present Convention. No information shall be exchanged which would
disclose any trade secret or trade process.
Article XVIII
(1) The contracting States undertake to lend assistance and support
to each other in the collection of the taxes which are the subject of
the present Convention, together with interest, costs, and additions to
the taxes.
(2) In the case of application for enforcement of taxes, revenue
claims of each of the contracting States which have been finally
determined may be accepted for enforcement by the other contracting
State and may be collected in that State in accordance with the laws
applicable to the enforcement and collection of its own taxes.
(3) Any application shall include a certification that under the
laws of the State making the application the taxes have been finally
determined.
(4) The assistance provided for in this Article shall not be
accorded with respect to the citizens, corporations, or other entities
of the State to which application is made, except as is necessary to
insure that the exemption or reduced rate of tax granted under the
present Convention to such citizens, corporations, or other entities
shall not be enjoyed by persons not entitled to such benefits.
Article XIX
The State to which application is made for information or assistance
shall comply as soon as possible with the request addressed to it except
that such State may refuse to comply with the request for reasons of
public policy or if compliance would involve violation of a trade,
business, industrial or professional secret or trade process.
Article XX
Where a taxpayer shows proof that the action of the revenue
authorities of the contracting States has resulted in double taxation in
his case in respect of any of the taxes to which the present Convention
relates, he shall be entitled to lodge a claim with the State of which
he is a citizen or, if he is not a citizen of either of the contracting
States, with the State of which he is a resident, or, if the taxpayer is
a corporation or other entity, with the State in which it is created or
organized. Should the claim be upheld, the competent authority of such
State may come to an agreement with the competent authority of the other
State with a view to equitable avoidance of the double taxation in
question.
Article XXI
(1) The provisions of this Convention shall not be construed to deny
or affect in any manner the right of diplomatic and consular officers to
other or additional exemptions now enjoyed or which may hereafter be
granted to such officers.
(2) The provisions of the present Convention shall not be construed
to restrict in any manner any exemption, deduction, credit or other
allowance accorded by the laws of one of the contracting States in the
determination of the tax imposed by such State.
(3) Should any difficulty or doubt arise as to the interpretation or
application of the present Convention, or its relationship to
Conventions between one of the contracting States and any other State,
the competent authorities of the contracting States may settle the
question by mutual agreement.
Article XXII
The competent authorities of the two contracting States may
prescribe regulations necessary to interpret and carry out the
provisions of this Convention. With respect to the provisions of this
Convention relating to exchange of information and mutual assistance in
the collection of taxes, such authorities may, by common agreement,
prescribe rules concerning matters of procedure, forms of application
and replies thereto, conversion of currency, disposition of amounts
collected, minimum amounts subject to collection and related matters.
Article xxiii
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Washington as soon as possible.
(2) Upon the exchange of instruments of ratification, the present
Convention shall have effect.
(a) In the case of United States tax, for the taxable years
beginning on or after the first day of January of the year in which such
exchange takes place;
(b) In the case of Danish tax, for the taxable years beginning on or
after the first day of April of the year in which such exchange takes
place.
(3) The present Convention shall continue effective for a period of
five years and indefinitely after that period, but may be terminated by
either of the contracting States at the end of the five-year period or
at any time thereafter, provided that at least six months' prior notice
of termination has been given and, in such event, the present Convention
shall cease to be effective.
(a) As respects United States tax, for the taxable years beginning
on or after the first
[[Page 145]]
day of January next following the expiration of the six-month period;
(b) As respects Danish tax, for the taxable years beginning on or
after the first day of April next following the expiration of the six-
month period.
Done at Washington, in duplicate, in the English and Danish
languages, the two texts having equal authenticity, this 6th day of May
1948.
For the President of the United States of America:
[seal]
G. C. Marshall.
For his Majesty the King of Denmark:
[seal]
Henrik Kauffman.
Proclamation of the President of the United States Dated December 8,
1948
* * * * *
And whereas the Senate of the United States of America, by their
resolution of June 17, 1948, two-thirds of the Senators present
concurring therein, did advise and consent to the ratification of the
aforesaid convention subject to a reservation, as follows:
The Government of the United States of America does not accept
Article XII of the convention relating to gains from the sale or
exchange of capital assets.
And whereas the text of the aforesaid reservation was communicated
by the Government of the United States of America to the Government of
Denmark and thereafter the Government of Denmark gave notice of its
acceptance of the aforesaid reservation;
And whereas the aforesaid convention was duly ratified by the
President of the United States of America on November 24, 1948, in
pursuance of the aforesaid advice and consent of the Senate and subject
to the aforesaid reservation, and the said convention, with the
exception of Article XII thereof, was duly ratified on the part of
Denmark;
And whereas the respective instruments of ratification of the
aforesaid convention were duly exchanged at Washington on December 1,
1948, and a protocol of exchange of instruments of ratification, in the
English and Danish languages, was signed on that date by the respective
Plenipotentiaries of the United States of America and Denmark, the
English text of which protocol reads in part: ``it is the understanding
of both Governments that Article XII of the convention aforesaid shall
be deemed to be deleted and of no effect.'';
* * * * *
Sec. 521.102 Applicable provisions of the Internal Revenue Code.
(a) The Internal Revenue Code provides in part as follows:
Chapter I--Income Tax
* * * * *
Sec. 22. Gross income.
* * * * *
(b) Exclusions from gross income. The following items shall not be
included in gross income and shall be exempt from taxation under this
chapter:
* * * * *
(7) Income exempt under treaty. Income of any kind, to the extent
required by any treaty obligation of the United States;
* * * * *
Sec. 62. Rules and regulations. The Commissioner, with the approval
of the Secretary, shall prescribe and publish all needful rules and
regulations for the enforcement of this chapter.
(b) Pursuant to section 62 of the Internal Revenue Code, other
provisions of the internal revenue laws, and to Article XXII of the
convention, the following regulations, which are designated as
Secs. 521.101 to 521.117 are hereby prescribed and all regulations
inconsistent herewith are modified accordingly.
Sec. 521.103 Scope of the convention.
(a) The primary purposes of the convention, to be accomplished on a
reciprocal basis, are to avoid double taxation upon major items of
income derived from sources in one country by persons resident in, or by
corporations of, the other country, and to provide for administrative
cooperation between the competent tax authorities of the two countries
looking to the avoidance of double taxation and fiscal evasion.
(b) The specific classes of income from sources within the United
States exempt under the convention from United States tax for taxable
years beginning on and after January 1, 1948, are:
[[Page 146]]
(1) Industrial and commercial profits of a Danish enterprise having
no permanent establishment in the United States (Article III);
(2) Income derived by a nonresident alien who is a resident of
Denmark, or by a Danish corporation, from the operation of ships or
aircraft registered in Denmark (Article V);
(3) Interest and royalties (including motion picture film rentals)
derived by a nonresident alien who is a resident of Denmark or by a
Danish corporation if such alien or corporation has no permanent
establishment in the United States (Articles VII and VIII);
(4) Compensation and pensions paid by Denmark to aliens for services
rendered to Denmark (Article X(1));
(5) Private pensions and life annuities derived by nonresident alien
individuals residing in Denmark (Article X(2));
(6) Compensation, subject to certain limitations, for personal
services derived by a nonresident alien who is a resident of Denmark
(Article XI);
(7) Remittances from sources outside the United States received in
the United States by a Danish citizen who is temporarily present in the
United States for the purposes of study or for acquiring business
experience, such remittances being for the purpose of his maintenance or
studies (Article XIII);
(8) Remuneration derived from teaching in the United States for a
period of not more than two years by a professor or teacher who is a
resident of Denmark but who is temporarily present in the United States
(Article XIV).
(c) The convention also reduces to 15 percent the rate of tax
otherwise imposed upon dividends derived by a nonresident alien who is a
resident of Denmark, or by a Danish corporation, if such alien or
corporation has no permanent establishment in the United States (Article
VI).
(d) As to exemption from withholding of the tax at the source in the
case of interest, royalties, pensions and life annuities, and reduction
in the rate of tax from 30 percent to 15 percent in the case of
dividends, see Treasury Decision 5692, approved March 8, 1949
(Secs. 521.1 to 521.8).
(e) The convention does not affect the liability to United States
income taxation of citizens of Denmark who are residents of the United
States except that such individuals are entitled to the benefits of
Article XV (relating to credit for Danish income tax), and of Article
XVI (relating to equality of taxation). Except as provided in Article
XV, relating to the credit for income tax, the convention does not
affect taxation by the United States of a citizen of the United States
or of a domestic corporation, even though such citizen is resident in
Denmark and such corporation is engaged in trade or business in Denmark.
Effective Date Note: By T.D. 8732, 62 FR 53498, Oct. 14, 1997,
Sec. 521.103 was amended by removing and reserving paragraph (d),
effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the
effective date was delayed until Jan. 1, 2000.
Sec. 521.104 Definitions.
(a) As used in Secs. 521.101 to 521.117, unless the context
otherwise requires, the terms defined in the convention shall have the
meanings so assigned to them. Any term used in Secs. 521.101 to 521.117,
which is not defined in the convention but which is defined in the
Internal Revenue Code shall be given the definition contained therein
unless the context otherwise requires.
(b) As used in Secs. 521.101 to 521.117.
(1) The term ``permanent establishment'' means a branch office,
factory, warehouse or other fixed place of business, but does not
include the casual and temporary use of merely storage facilities. The
fact that a Danish corporation has a domestic subsidiary corporation or
a foreign subsidiary corporation having a branch in the United States,
does not of itself constitute either subsidiary corporation a permanent
establishment of the parent Danish enterprise. The fact that a Danish
enterprise has business dealings in the United States through a bona
fide commission agent, broker, or custodian, acting in the ordinary
course of his business as such, or maintains in the United States an
office or other fixed place of business used exclusively for the
purchase of goods or merchandise, does not mean that such Danish
enterprise has a permanent establishment in the United States. If,
however, a Danish enterprise carries on business in
[[Page 147]]
the United States through an agent who has, and habitually exercises, a
general authority to negotiate and conclude contracts on behalf of such
enterprise or if it has an agent who maintains within the United States
a stock of merchandise from which he regularly fills orders on behalf of
his principal, then such enterprise shall be deemed to have a permanent
establishment in the United States. However, an agent having power to
contract on behalf of his principal but only at fixed prices and under
conditions determined by the principal does not necessarily constitute a
permanent establishment of such principal. The mere fact that an agent
(assuming he has no general authority to contract on behalf of his
employer or principal) maintains samples or occasionally fills orders
from incidental stocks of goods maintained in the United States will not
constitute a permanent establishment within the United States. The mere
fact that salesmen, employees of a Danish enterprise, promote the sale
of their employer's products in the United States or that such
enterprise transacts business in the United States by means of mail
order activities, does not mean such enterprise has a permanent
establishment therein. The term ``permanent establishment'' as used in
the convention implies the active conduct therein of a business
enterprise. The mere ownership, for example, of timberlands or a
warehouse in the United States by a Danish enterprise does not mean that
such enterprise has a permanent establishment therein. As to the effect
of the maintenance of a permanent establishment within the United States
upon exemption from United States tax in the case of interest and
royalties and reduction in the rate of United States tax in the case of
dividends, see Sec. 521.108.
(2) The term ``enterprise'' means any commercial or industrial
undertaking whether conducted by an individual, partnership,
corporation, or other entity. It includes such activities as
manufacturing, merchandising, mining, processing, and banking. It does
not include the rendition of personal services. Hence, a non resident
alien who is a resident of Denmark and who renders personal services is
not, merely by reason of such services, engaged in an enterprise within
the meaning of the convention and his liability to United States tax is
not affected by Article III of the convention.
(3) The term ``Danish enterprise'' means an enterprise carried on in
Denmark by a resident of Denmark or by a Danish corporation or other
entity. The term ``Danish corporation or other entity'' means a
partnership, corporation or other entity created or organized in Denmark
or under the laws of Denmark.
(4) The term ``industrial or commercial profits'' means profits
arising from industrial, commercial, mercantile, manufacturing, and like
activities of a Danish enterprise as defined in this section. Such term
does not include rentals, royalties, interest, dividends, fees,
compensation for personal services, nor gains derived from the sale or
exchange of capital assets. Such enumerated items of income are not
governed by the provisions of Article III of the convention.
Sec. 521.105 Scope of convention with respect to determination of ``industrial or commercial profits''.
(a) General. Article III of the convention adopts the principle that
an enterprise of one of the contracting States shall not be taxable by
the other contracting State upon its industrial or commercial profits
unless it has a permanent establishment in the latter State. Hence, a
Danish enterprise is subject to United States tax upon its industrial
and commercial profits to the extent of such profits from sources within
the United States only if it has a permanent establishment within the
United States. From the standpoint of Federal income taxation, the
article has application only to a Danish enterprise and to the
industrial and commercial income thereof from sources within the United
States. It has no application for example, to compensation for labor or
personal services performed in the United States nor to income derived
from real property located in the United States, including rentals and
royalties therefrom, nor to gains from the sale or disposition of
[[Page 148]]
such property, nor to interest, dividends, royalties, other fixed or
determinable annual or periodical income and gains derived from the sale
or exchange of capital assets.
(b) No United States permanent establishment. A nonresident alien
(including a nonresident alien individual, fiduciary and partnership)
who is a resident of Denmark or a Danish corporation, carrying on an
enterprise in Denmark and having no permanent establishment in the
United States, is not for taxable years beginning on or after January 1,
1948, subject to United States income tax upon industrial or commercial
profits from sources within the United States. For example, if the
Danish enterprise carried on by such alien or corporation sells, in
1948, merchandise, such as silverware, dairy products, or liquors,
through a bona fide commission agent or broker in the United States
acting in the ordinary course of his business as such agent or broker,
the resulting profits are, under the terms of Article III of the
convention, exempt from United States income tax. Likewise no permanent
establishment exists and no United States income tax attaches to such
profits if such enterprise, through its sales agents in the United
States, secures orders for its products, the sales being made in
Denmark.
(c) United States permanent establishment. A nonresident alien
(including a nonresident alien individual, fiduciary and partnership),
who is a resident of Denmark, or a Danish corporation, whether or not
carrying on a Danish enterprise, having a permanent establishment in the
United States, is subject to tax upon industrial or commercial profits
from sources within the United States to the same extent as are
nonresident aliens and foreign corporations engaged in trade or business
therein. In the determination of the income taxable to such alien or
foreign corporation all industrial and commercial profits from sources
within the United States shall be deemed to be allocable to the
permanent establishment in the United States. Hence, for example, if a
Danish enterprise having a permanent establishment in the United States
sells in the United States, through a commission agent therein goods
produced in Denmark, the resulting profits derived from United States
sources from such transactions are allocable to such permanent
establishment even though such transactions were carried on
independently of such establishment. In determining industrial and
commercial profits no account shall be taken of the mere purchase of
merchandise within the United States by the Danish enterprise. The
industrial or commercial profits of the permanent establishment shall be
determined as if the establishment were an independent enterprise
engaged in the same or similar activities and dealing at arm's length
with the enterprise of which it is a permanent establishment.
Sec. 521.106 Control of a domestic enterprise by a Danish enterprise.
Article IV of the convention provides, in effect, that if a Danish
corporation by reason of its control of a domestic enterprise imposes on
such later enterprise conditions different from those which would result
from normal business relations between independent enterprises, the
accounts between the enterprises may be adjusted so as to ascertain the
true net income of each enterprise. The purpose is to place the
controlled domestic enterprise on a tax parity with an uncontrolled
domestic enterprise by determining, according to the standard of an
uncontrolled enterprise, the true net income from the property and
business of the controlled enterprise. The basic objective of the
article is that if the accounting records do not truly reflect the net
income from the property and business of such domestic enterprise the
Commissioner of Internal Revenue may intervene and, by making such
distributions, apportionments, or allocations as he may deem necessary
of gross income or deductions of any item or element affecting net
income as between such domestic enterprise and the Danish enterprise by
which it is controlled or directed, determine the true net income of the
domestic enterprise. The provisions of Sec. 29.45-1 of Regulations 111
(26 CFR 1949 ed. Supps. 29.45-1) [and Sec. 39.45-1 of Regulations 118
(26 CFR, Rev. 1953, Parts 1-79, and Supps.)] shall, insofar as
applicable, be followed
[[Page 149]]
in the determination of the net income of the domestic business.
Sec. 521.107 Income from operation of ships or aircraft.
The income derived from the operation of ships or aircraft
registered in Denmark by a nonresident alien who is a resident of
Denmark, or by a Danish corporation, and carrying on an enterprise in
Denmark, is, for taxable years beginning on or after January 1, 1948,
exempt from United States income tax under the provisions of Article V
of the convention.
Sec. 521.108 Exemption from, or reduction in rate of, United States tax in the case of dividends, interest and royalties.
(a) Dividends--(1) General. The tax imposed by the Internal Revenue
Code in the case of dividends received from sources within the United
States by (i) a nonresident alien (including a nonresident alien
individual, fiduciary and partnership) who is a resident of Denmark, or
(ii) a Danish corporation is, for taxable years beginning on and after
January 1, 1948, limited to 15 percent under the provisions of Article
VI (relating to dividends) if such alien or corporation, at no time
during the taxable year in which such dividends were so derived, had a
permanent establishment within the United States. Thus, if a nonresident
alien who is a resident of Denmark, performs personal services within
the United States during the calendar year 1948 but has at no time
during such year a permanent establishment within the United States, he
is entitled to the reduced rate of tax with respect to such dividends
derived in that year from United States sources, as provided in Article
VI of the convention, even though by reason of his having rendered
personal services within the United States he is engaged in trade or
business therein in that year within the meaning of section 211(b) of
the Internal Revenue Code. If, for example, A, a nonresident alien who
is a resident of Denmark, derives in 1948, $5,000 compensation for such
personal services and his only other income from sources within the
United States consists of dividends, the dividends are subject to tax at
a rate not to exceed 15 percent and his earned income is subject to
normal tax and surtax without taking the dividends into account in
determining the tax on such earned income.
(2) Dividends paid by a United States subsidiary corporation. Under
the provisions of Article VI(3) of the convention, dividends paid by a
domestic corporation to a Danish corporation are subject to tax at the
rate of only 5 percent if (i) such Danish corporation controls, directly
or indirectly, at the time the dividend is paid 95 percent or more of
the voting power in such domestic corporation, (ii) not more than 25
percent of the gross income of the domestic corporation for the three-
year period immediately preceding the taxable year in which the dividend
is paid consists of dividends and interest (other than dividends and
interest paid to such domestic corporation by its own subsidiary
corporations, if any), and (iii) the relationship between such domestic
corporation and such Danish corporation has not been arranged or
maintained primarily with the intention of securing such reduced rate of
5 percent.
(b) Interest and royalties. (1) Interest, whether on bonds,
securities, notes, debentures, or any other form of indebtedness
(including interest on obligations of the United States and on
obligations of instrumentalities of the United States), and royalties
for the right to use copyrights, patents, designs, secret processes and
formulae, trade-marks, and other analogous property and royalties
(including rentals and like payments in respect of motion picture films)
received from sources within the United States by (i) a nonresident
alien (including a nonresident alien individual, fiduciary, and
partnership) who is a resident of Denmark, or (ii) a Danish corporation,
are, for taxable years beginning on and after January 1, 1948, exempt
from United States tax under the provisions of Articles VII and VIII of
the convention if such alien or corporation at no time during the
taxable year in which such interest or royalty was so derived had a
permanent establishment situated within the United States.
[[Page 150]]
(2) Such interest and royalties are, therefore, not subject to the
withholding provisions of the Internal Revenue Code.
(c) Beneficiaries of an estate or trust. (1) A nonresident alien who
is a resident of Denmark and who is a beneficiary of a domestic estate
or trust shall be entitled to the exemption, or reduction in the rate of
tax, as the case may be, provided in Articles VI, VII and VIII of the
convention with respect to dividends, interest and royalties to the
extent that such item or items are included in his distributive share of
income of such estate or trust if he at no time during the taxable year
had a permanent establishment in the United States. In such case such
beneficiary must, in order to be entitled to the exemption or reduction
in the rate of tax execute Form 101-D or Form 1001A-D (modified to show
dividends where applicable) and file such form with the fiduciary of
such estate or trust in the United States.
(2) In any case in which dividends, interest or royalties are
derived from United States sources by a Danish estate or trust, any
beneficiary of such estate or trust who is not a resident of Denmark, or
who has a permanent establishment in the United States, is not entitled
to any exemption under the convention with respect to such income
included in his distributive share of the income of the estate or trust.
Sec. 521.109 Real property income, natural resource royalties.
Under Article IX of the convention, a nonresident alien (including a
nonresident alien individual, fiduciary, and partnership) who is a
resident of Denmark, or a Danish corporation, who derives from sources
within the United States in any taxable year beginning on or after
January 1, 1948, income from real property (not including interest
derived from mortgages or bonds secured by real property) or royalties
from the operation of mines, quarries, oil wells or other natural
resources may, for such taxable year, elect to be subject to Federal
income tax as if such alien or corporation were engaged in trade or
business within the United States by reason of having a permanent
establishment therein during such taxable year. Such election shall be
made by so signifying on the return for such year. The election so
signified shall be irrevocable for the taxable year for which such
election is made. In such case a return may be filed by the nonresident
alien or foreign corporation even though the sole income of such alien
or corporation from sources within the United States is fixed or
determinable annual or periodical income upon which the tax has been
fully satisfied at the source and there exists no necessity for the
filing of the return except for the purposes of securing the benefits of
Article IX of the convention. See Sec. 29.217-2 of Regulations 111 (26
CFR 1949 ed. Supps. 29.217-2) [and Sec. 39.217-2 of Regulations 118 (26
CFR, Rev. 1953, Parts 1-79, and Supps.)]
Sec. 521.110 Government wages, salaries, pensions and similar remuneration.
Under Article X (1) of the convention any wage, salary, similar
compensation or pension paid by the Government of Denmark or by any
other public authority within Denmark to an individual in the United
States is exempt from Federal income tax for taxable years beginning on
and after January 1, 1948. By reason, however, of the application of
Article XV (a) of the convention, such exemption does not apply to
recipients of such income who are either citizens of the United States
or alien residents therein. As to the taxation generally of compensation
of alien employees of foreign governments, see section 116(h) of the
Internal Revenue Code and Sec. 29.116-2 of Regulations 111 (26 CFR 1949
ed. Supps. 29.116-2) [and Sec. 39.116-2 of Regulations 118 (26 CFR, Rev.
1953, Parts 1-79, and Supps.)].
Sec. 521.111 Pensions and life annuities.
Under the provisions of Article X(2) of the convention, private
pensions and life annuities derived from sources within the United
States by nonresident alien individuals who are residents of Denmark are
exempt from Federal income tax for taxable years beginning on and after
January 1, 1948. The term ``life annuities'' is defined in Article X(3).
The term ``private pensions'' does not include pensions or retired pay
paid by the United States or
[[Page 151]]
by any State or Territory of the United States; it does include periodic
payments made in consideration for services rendered or by way of
compensation for injuries received.
Sec. 521.112 Compensation for labor or personal services.
Article XI of the convention adopts the principle that compensation
for labor or personal services, including the practice of the liberal
professions, is subject to tax only in the contracting State in which
such services are rendered. Hence, in general, such compensation derived
by a nonresident alien individual residing in Denmark for services
rendered in the United States is subject to Federal income tax. Under
Article XI of the convention this general rule is subject to the
following exceptions:
(a) Where such individual is temporarily present in the United
States for a period or periods not exceeding a total of 90 days during
the taxable year, compensation received for labor or personal services
within the United States during such year is exempt from Federal income
tax provided such compensation does not exceed $3,000 in the aggregate.
(b) Where such individual is temporarily present in the United
States for a period or periods not exceeding a total of 180 days during
the taxable year, compensation for labor or personal services within the
United States during such year is exempt from Federal income tax
provided such compensation is received for services performed as a
worker or employee of, or under contract with, a resident or corporation
of Denmark (even though such resident or corporation is engaged in trade
or business in the United States) which resident or corporation actually
bears the expense of such compensation and is not reimbursed therefor by
another person.
As to the source of compensation for labor or personal services, see
section 119(a)(3) of the Internal Revenue Code.
Sec. 521.113 Students and apprentices; remittances.
Under Article XIII of the convention, citizens of Denmark who are
temporarily present in the United States as students or apprentices
exclusively for the purposes of study or for acquiring business
experience, are exempt for taxable years beginning on or after January
1, 1948, from Federal income tax upon amounts representing remittances
from sources outside the United States for the purposes of their
maintenance or studies.
Sec. 521.114 Visiting professors or teachers.
Under Article XIV of the convention, an alien who is a resident of
Denmark but who is temporarily present within the United States for the
purpose of teaching, lecturing, or instructing at any university,
college, school, or other educational institution, situated within the
United States, is, for a period not exceeding two years from the date of
his arrival in the United States, exempt for taxable years beginning on
or after January 1, 1948, from Federal income tax on remuneration
received for such services. It shall be deemed that such alien coming to
the United States for the purposes indicated has, for a period of not
more than two years immediately succeeding the date of his arrival
within the United States for such purposes, the tax status of a
nonresident alien in the absence of proof of his intention to remain
indefinitely in the United States.
Sec. 521.115 Credit against United States tax liability for Danish tax.
For the purpose of avoidance of double taxation, Article XV provides
that, on the part of the United States, there shall be allowed against
the United States income tax a credit for the amount of Danish taxes
described in Article I of the convention imposed on income derived from
sources within Denmark for taxable years beginning on and after January
1, 1948. Such credit, however, is subject to the limitations provided in
section 131 of the Internal Revenue Code (relating to the credit for
foreign taxes). See Secs. 29.131-1 to 29.131-10 of Regulations 111 (26
CFR 1949 ed. Supps. 29.131-1 to 29.131-10) [and Secs. 39.131(a) 1 to
39.131(j)-1 of Regulations 118 (26 CFR, Rev. 1953, Parts 1-79, and
Supps.)].
[[Page 152]]
Sec. 521.116 Reciprocal administrative assistance.
(a) General. (1) By Article XVII of the convention, the United
States and Denmark adopt the principle of exchange of such information
as is necessary for carrying out the provisions of the convention or for
the prevention of fraud or for the detection of practices which are
aimed at reduction of the revenues of either country, but not including
information which would disclose a trade, business, industrial or
professional secret or trade process.
(2) The information and correspondence relative to exchange of
information may be transmitted directly by the Commissioner of Internal
Revenue to the Chief of the Taxation Department of the Ministry of
Finance (Generaldirektoren for Skattevaesenet) of Denmark.
(b) Information to be furnished in due course. (1) Pursuant to such
principle, withholding agents shall, in the preparation of withholding
returns, Form 1042, report on such returns, for the calendar year 1949
and each subsequent calendar year, in addition to the items of income
upon which tax has been withheld at the source, those items of income
paid to a nonresident alien individual resident in Denmark, or to a
Danish corporation, upon which tax has not been withheld at the source.
Such return shall show the same information with respect to such items
of income upon which tax has not been withheld at the source as is shown
with respect to items of income upon which the tax has been withheld at
the source.
(2) In accordance with the provisions of Article XVII of the
convention, the Commissioner of Internal Revenue will transmit to the
Chief of the Taxation Department of the Ministry of Finance of Denmark,
as soon as practicable after the close of the calendar year 1949, and of
each calendar year thereafter during which the convention is in effect,
the following information relating to such calendar year: The names and
addresses of all persons whose addresses are in Denmark as disclosed on
such withholding return, Form 1042, deriving from sources within the
United States dividends interest (other than coupon bond interest),
rents, royalties, salaries, wages, pensions, annuities and other fixed
or determinable annual or periodical profits or income, and the amount
of such income with respect to such persons as disclosed on such return,
together with ownership certificate, Form 1001-D, filed in connection
with coupon bond interest. Such transmission shall constitute compliance
with Article XVII of the convention and of Secs. 521.101 to 521.117.
(c) Information in specific cases. Under the provisions and
limitations of Article XVII of the convention, and subject to the
provisions of Article XIX and Article XXII of the convention, and upon
the request of the Chief of the Taxation Department of the Ministry of
Finance of Denmark, the Commissioner of Internal Revenue shall furnish
to the Chief of the Taxation Department information available to or
obtainable by the Commissioner of Internal Revenue relative to the tax
liability of any person under the revenue laws of Denmark in any case in
which such information is necessary to the administration of the
provisions of the convention or for the prevention of fraud or the
administration of statutory provisions against tax avoidance.
Sec. 521.117 Claims in cases of double taxation.
Under Article XX of the convention, where the action of the revenue
authorities of the contracting States has resulted in double taxation in
respect of any of the taxes to which the convention relates, the
taxpayer is entitled to lodge a claim with the country of which he is a
citizen or, if he is not a citizen of either country, with the country
of which he is a resident, or if the taxpayer is a corporation or other
entity, with the country in which it is created or organized. Article XX
further provides that should the claim be upheld, the competent
authority of the country with which the claim is lodged may come to an
agreement with the competent authority of the other country with a view
to equitable avoidance of the double taxation. Such a claim on behalf of
a United States citizen or corporation or other entity, or on behalf of
a resident of the United States who is not a Danish citizen, shall be
filed with the Commissioner of Internal
[[Page 153]]
Revenue, Washington, D.C. The claim should be set up in the form of a
letter and should show fully all facts on the basis of which the
claimant alleges that such double taxation has resulted. If the
Commissioner of Internal Revenue determines that there is an appropriate
basis for the claim under the convention, he will take the matter up
with the Chief of the Taxation Department of the Ministry of Finance of
Denmark with a view to arranging an agreement of the character
contemplated by Article XX.
[[Page 155]]
FINDING AIDS
--------------------------------------------------------------------
A list of CFR titles, subtitles, chapters, subchapters and parts and
an alphabetical list of agencies publishing in the CFR are included in
the CFR Index and Finding Aids volume to the Code of Federal Regulations
which is published separately and revised annually.
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
Table of OMB Control Numbers
List of CFR Sections Affected
[[Page 157]]
Table of CFR Titles and Chapters
(Revised as of March 31, 1999)
Title 1--General Provisions
I Administrative Committee of the Federal Register
(Parts 1--49)
II Office of the Federal Register (Parts 50--299)
IV Miscellaneous Agencies (Parts 400--500)
Title 2--[Reserved]
Title 3--The President
I Executive Office of the President (Parts 100--199)
Title 4--Accounts
I General Accounting Office (Parts 1--99)
II Federal Claims Collection Standards (General
Accounting Office--Department of Justice) (Parts
100--299)
Title 5--Administrative Personnel
I Office of Personnel Management (Parts 1--1199)
II Merit Systems Protection Board (Parts 1200--1299)
III Office of Management and Budget (Parts 1300--1399)
IV Advisory Committee on Federal Pay (Parts 1400--1499)
V The International Organizations Employees Loyalty
Board (Parts 1500--1599)
VI Federal Retirement Thrift Investment Board (Parts
1600--1699)
VII Advisory Commission on Intergovernmental Relations
(Parts 1700--1799)
VIII Office of Special Counsel (Parts 1800--1899)
IX Appalachian Regional Commission (Parts 1900--1999)
XI Armed Forces Retirement Home (Part 2100)
XIV Federal Labor Relations Authority, General Counsel of
the Federal Labor Relations Authority and Federal
Service Impasses Panel (Parts 2400--2499)
XV Office of Administration, Executive Office of the
President (Parts 2500--2599)
XVI Office of Government Ethics (Parts 2600--2699)
XXI Department of the Treasury (Parts 3100--3199)
[[Page 158]]
XXII Federal Deposit Insurance Corporation (Part 3201)
XXIII Department of Energy (Part 3301)
XXIV Federal Energy Regulatory Commission (Part 3401)
XXV Department of the Interior (Part 3501)
XXVI Department of Defense (Part 3601)
XXVIII Department of Justice (Part 3801)
XXIX Federal Communications Commission (Parts 3900--3999)
XXX Farm Credit System Insurance Corporation (Parts 4000--
4099)
XXXI Farm Credit Administration (Parts 4100--4199)
XXXIII Overseas Private Investment Corporation (Part 4301)
XXXV Office of Personnel Management (Part 4501)
XL Interstate Commerce Commission (Part 5001)
XLI Commodity Futures Trading Commission (Part 5101)
XLII Department of Labor (Part 5201)
XLIII National Science Foundation (Part 5301)
XLV Department of Health and Human Services (Part 5501)
XLVI Postal Rate Commission (Part 5601)
XLVII Federal Trade Commission (Part 5701)
XLVIII Nuclear Regulatory Commission (Part 5801)
L Department of Transportation (Part 6001)
LII Export-Import Bank of the United States (Part 6201)
LIII Department of Education (Parts 6300--6399)
LIV Environmental Protection Agency (Part 6401)
LVII General Services Administration (Part 6701)
LVIII Board of Governors of the Federal Reserve System (Part
6801)
LIX National Aeronautics and Space Administration (Part
6901)
LX United States Postal Service (Part 7001)
LXI National Labor Relations Board (Part 7101)
LXII Equal Employment Opportunity Commission (Part 7201)
LXIII Inter-American Foundation (Part 7301)
LXV Department of Housing and Urban Development (Part
7501)
LXVI National Archives and Records Administration (Part
7601)
LXIX Tennessee Valley Authority (Part 7901)
LXXI Consumer Product Safety Commission (Part 8101)
LXXIV Federal Mine Safety and Health Review Commission (Part
8401)
LXXVI Federal Retirement Thrift Investment Board (Part 8601)
LXXVII Office of Management and Budget (Part 8701)
Title 6--[Reserved]
Title 7--Agriculture
Subtitle A--Office of the Secretary of Agriculture
(Parts 0--26)
Subtitle B--Regulations of the Department of
Agriculture
[[Page 159]]
I Agricultural Marketing Service (Standards,
Inspections, Marketing Practices), Department of
Agriculture (Parts 27--209)
II Food and Nutrition Service, Department of Agriculture
(Parts 210--299)
III Animal and Plant Health Inspection Service, Department
of Agriculture (Parts 300--399)
IV Federal Crop Insurance Corporation, Department of
Agriculture (Parts 400--499)
V Agricultural Research Service, Department of
Agriculture (Parts 500--599)
VI Natural Resources Conservation Service, Department of
Agriculture (Parts 600--699)
VII Farm Service Agency, Department of Agriculture (Parts
700--799)
VIII Grain Inspection, Packers and Stockyards
Administration (Federal Grain Inspection Service),
Department of Agriculture (Parts 800--899)
IX Agricultural Marketing Service (Marketing Agreements
and Orders; Fruits, Vegetables, Nuts), Department
of Agriculture (Parts 900--999)
X Agricultural Marketing Service (Marketing Agreements
and Orders; Milk), Department of Agriculture
(Parts 1000--1199)
XI Agricultural Marketing Service (Marketing Agreements
and Orders; Miscellaneous Commodities), Department
of Agriculture (Parts 1200--1299)
XIII Northeast Dairy Compact Commission (Parts 1300--1399)
XIV Commodity Credit Corporation, Department of
Agriculture (Parts 1400--1499)
XV Foreign Agricultural Service, Department of
Agriculture (Parts 1500--1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts
1600--1699)
XVII Rural Utilities Service, Department of Agriculture
(Parts 1700--1799)
XVIII Rural Housing Service, Rural Business-Cooperative
Service, Rural Utilities Service, and Farm Service
Agency, Department of Agriculture (Parts 1800--
2099)
XXVI Office of Inspector General, Department of Agriculture
(Parts 2600--2699)
XXVII Office of Information Resources Management, Department
of Agriculture (Parts 2700--2799)
XXVIII Office of Operations, Department of Agriculture (Parts
2800--2899)
XXIX Office of Energy, Department of Agriculture (Parts
2900--2999)
XXX Office of the Chief Financial Officer, Department of
Agriculture (Parts 3000--3099)
XXXI Office of Environmental Quality, Department of
Agriculture (Parts 3100--3199)
XXXII Office of Procurement and Property Management,
Department of Agriculture (Parts 3200--3299)
[[Page 160]]
XXXIII Office of Transportation, Department of Agriculture
(Parts 3300--3399)
XXXIV Cooperative State Research, Education, and Extension
Service, Department of Agriculture (Parts 3400--
3499)
XXXV Rural Housing Service, Department of Agriculture
(Parts 3500--3599)
XXXVI National Agricultural Statistics Service, Department
of Agriculture (Parts 3600--3699)
XXXVII Economic Research Service, Department of Agriculture
(Parts 3700--3799)
XXXVIII World Agricultural Outlook Board, Department of
Agriculture (Parts 3800--3899)
XLI [Reserved]
XLII Rural Business-Cooperative Service and Rural Utilities
Service, Department of Agriculture (Parts 4200--
4299)
Title 8--Aliens and Nationality
I Immigration and Naturalization Service, Department of
Justice (Parts 1--499)
Title 9--Animals and Animal Products
I Animal and Plant Health Inspection Service, Department
of Agriculture (Parts 1--199)
II Grain Inspection, Packers and Stockyards
Administration (Packers and Stockyards Programs),
Department of Agriculture (Parts 200--299)
III Food Safety and Inspection Service, Department of
Agriculture (Parts 300--599)
Title 10--Energy
I Nuclear Regulatory Commission (Parts 0--199)
II Department of Energy (Parts 200--699)
III Department of Energy (Parts 700--999)
X Department of Energy (General Provisions) (Parts
1000--1099)
XVII Defense Nuclear Facilities Safety Board (Parts 1700--
1799)
Title 11--Federal Elections
I Federal Election Commission (Parts 1--9099)
Title 12--Banks and Banking
I Comptroller of the Currency, Department of the
Treasury (Parts 1--199)
II Federal Reserve System (Parts 200--299)
III Federal Deposit Insurance Corporation (Parts 300--399)
[[Page 161]]
IV Export-Import Bank of the United States (Parts 400--
499)
V Office of Thrift Supervision, Department of the
Treasury (Parts 500--599)
VI Farm Credit Administration (Parts 600--699)
VII National Credit Union Administration (Parts 700--799)
VIII Federal Financing Bank (Parts 800--899)
IX Federal Housing Finance Board (Parts 900--999)
XI Federal Financial Institutions Examination Council
(Parts 1100--1199)
XIV Farm Credit System Insurance Corporation (Parts 1400--
1499)
XV Department of the Treasury (Parts 1500--1599)
XVII Office of Federal Housing Enterprise Oversight,
Department of Housing and Urban Development (Parts
1700--1799)
XVIII Community Development Financial Institutions Fund,
Department of the Treasury (Parts 1800--1899)
Title 13--Business Credit and Assistance
I Small Business Administration (Parts 1--199)
III Department of Commerce, Economic Development
Administration, (Parts 300--399)
Title 14--Aeronautics and Space
I Federal Aviation Administration, Department of
Transportation (Parts 1--199)
II Office of the Secretary, Department of Transportation
(Aviation Proceedings) (Parts 200--399)
III Commercial Space Transportation, Federal Aviation
Administration, Department of Transportation
(Parts 400--499)
V National Aeronautics and Space Administration (Parts
1200--1299)
Title 15--Commerce and Foreign Trade
Subtitle A--Office of the Secretary of Commerce (Parts
0--29)
Subtitle B--Regulations Relating to Commerce and
Foreign Trade
I Bureau of the Census, Department of Commerce (Parts
30--199)
II National Institute of Standards and Technology,
Department of Commerce (Parts 200--299)
III International Trade Administration, Department of
Commerce (Parts 300--399)
IV Foreign-Trade Zones Board, Department of Commerce
(Parts 400--499)
VII Bureau of Export Administration, Department of
Commerce (Parts 700--799)
[[Page 162]]
VIII Bureau of Economic Analysis, Department of Commerce
(Parts 800--899)
IX National Oceanic and Atmospheric Administration,
Department of Commerce (Parts 900--999)
XI Technology Administration, Department of Commerce
(Parts 1100--1199)
XIII East-West Foreign Trade Board (Parts 1300--1399)
XIV Minority Business Development Agency (Parts 1400--
1499)
Subtitle C--Regulations Relating to Foreign Trade
Agreements
XX Office of the United States Trade Representative
(Parts 2000--2099)
Subtitle D--Regulations Relating to Telecommunications
and Information
XXIII National Telecommunications and Information
Administration, Department of Commerce (Parts
2300--2399)
Title 16--Commercial Practices
I Federal Trade Commission (Parts 0--999)
II Consumer Product Safety Commission (Parts 1000--1799)
Title 17--Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1--199)
II Securities and Exchange Commission (Parts 200--399)
IV Department of the Treasury (Parts 400--499)
Title 18--Conservation of Power and Water Resources
I Federal Energy Regulatory Commission, Department of
Energy (Parts 1--399)
III Delaware River Basin Commission (Parts 400--499)
VI Water Resources Council (Parts 700--799)
VIII Susquehanna River Basin Commission (Parts 800--899)
XIII Tennessee Valley Authority (Parts 1300--1399)
Title 19--Customs Duties
I United States Customs Service, Department of the
Treasury (Parts 1--199)
II United States International Trade Commission (Parts
200--299)
III International Trade Administration, Department of
Commerce (Parts 300--399)
[[Page 163]]
Title 20--Employees' Benefits
I Office of Workers' Compensation Programs, Department
of Labor (Parts 1--199)
II Railroad Retirement Board (Parts 200--399)
III Social Security Administration (Parts 400--499)
IV Employees' Compensation Appeals Board, Department of
Labor (Parts 500--599)
V Employment and Training Administration, Department of
Labor (Parts 600--699)
VI Employment Standards Administration, Department of
Labor (Parts 700--799)
VII Benefits Review Board, Department of Labor (Parts
800--899)
VIII Joint Board for the Enrollment of Actuaries (Parts
900--999)
IX Office of the Assistant Secretary for Veterans'
Employment and Training, Department of Labor
(Parts 1000--1099)
Title 21--Food and Drugs
I Food and Drug Administration, Department of Health and
Human Services (Parts 1--1299)
II Drug Enforcement Administration, Department of Justice
(Parts 1300--1399)
III Office of National Drug Control Policy (Parts 1400--
1499)
Title 22--Foreign Relations
I Department of State (Parts 1--199)
II Agency for International Development (Parts 200--299)
III Peace Corps (Parts 300--399)
IV International Joint Commission, United States and
Canada (Parts 400--499)
V United States Information Agency (Parts 500--599)
VII Overseas Private Investment Corporation, International
Development Cooperation Agency (Parts 700--799)
IX Foreign Service Grievance Board Regulations (Parts
900--999)
X Inter-American Foundation (Parts 1000--1099)
XI International Boundary and Water Commission, United
States and Mexico, United States Section (Parts
1100--1199)
XII United States International Development Cooperation
Agency (Parts 1200--1299)
XIII Board for International Broadcasting (Parts 1300--
1399)
XIV Foreign Service Labor Relations Board; Federal Labor
Relations Authority; General Counsel of the
Federal Labor Relations Authority; and the Foreign
Service Impasse Disputes Panel (Parts 1400--1499)
XV African Development Foundation (Parts 1500--1599)
XVI Japan-United States Friendship Commission (Parts
1600--1699)
XVII United States Institute of Peace (Parts 1700--1799)
[[Page 164]]
Title 23--Highways
I Federal Highway Administration, Department of
Transportation (Parts 1--999)
II National Highway Traffic Safety Administration and
Federal Highway Administration, Department of
Transportation (Parts 1200--1299)
III National Highway Traffic Safety Administration,
Department of Transportation (Parts 1300--1399)
Title 24--Housing and Urban Development
Subtitle A--Office of the Secretary, Department of
Housing and Urban Development (Parts 0--99)
Subtitle B--Regulations Relating to Housing and Urban
Development
I Office of Assistant Secretary for Equal Opportunity,
Department of Housing and Urban Development (Parts
100--199)
II Office of Assistant Secretary for Housing-Federal
Housing Commissioner, Department of Housing and
Urban Development (Parts 200--299)
III Government National Mortgage Association, Department
of Housing and Urban Development (Parts 300--399)
IV Office of Multifamily Housing Assistance
Restructuring, Department of Housing and Urban
Development (Parts 400--499)
V Office of Assistant Secretary for Community Planning
and Development, Department of Housing and Urban
Development (Parts 500--599)
VI Office of Assistant Secretary for Community Planning
and Development, Department of Housing and Urban
Development (Parts 600--699) [Reserved]
VII Office of the Secretary, Department of Housing and
Urban Development (Housing Assistance Programs and
Public and Indian Housing Programs) (Parts 700--
799)
VIII Office of the Assistant Secretary for Housing--Federal
Housing Commissioner, Department of Housing and
Urban Development (Section 8 Housing Assistance
Programs, Section 202 Direct Loan Program, Section
202 Supportive Housing for the Elderly Program and
Section 811 Supportive Housing for Persons With
Disabilities Program) (Parts 800--899)
IX Office of Assistant Secretary for Public and Indian
Housing, Department of Housing and Urban
Development (Parts 900--999)
X Office of Assistant Secretary for Housing--Federal
Housing Commissioner, Department of Housing and
Urban Development (Interstate Land Sales
Registration Program) (Parts 1700--1799)
XII Office of Inspector General, Department of Housing and
Urban Development (Parts 2000--2099)
XX Office of Assistant Secretary for Housing--Federal
Housing Commissioner, Department of Housing and
Urban Development (Parts 3200--3899)
XXV Neighborhood Reinvestment Corporation (Parts 4100--
4199)
[[Page 165]]
Title 25--Indians
I Bureau of Indian Affairs, Department of the Interior
(Parts 1--299)
II Indian Arts and Crafts Board, Department of the
Interior (Parts 300--399)
III National Indian Gaming Commission, Department of the
Interior (Parts 500--599)
IV Office of Navajo and Hopi Indian Relocation (Parts
700--799)
V Bureau of Indian Affairs, Department of the Interior,
and Indian Health Service, Department of Health
and Human Services (Part 900)
VI Office of the Assistant Secretary-Indian Affairs,
Department of the Interior (Part 1001)
VII Office of the Special Trustee for American Indians,
Department of the Interior (Part 1200)
Title 26--Internal Revenue
I Internal Revenue Service, Department of the Treasury
(Parts 1--799)
Title 27--Alcohol, Tobacco Products and Firearms
I Bureau of Alcohol, Tobacco and Firearms, Department of
the Treasury (Parts 1--299)
Title 28--Judicial Administration
I Department of Justice (Parts 0--199)
III Federal Prison Industries, Inc., Department of Justice
(Parts 300--399)
V Bureau of Prisons, Department of Justice (Parts 500--
599)
VI Offices of Independent Counsel, Department of Justice
(Parts 600--699)
VII Office of Independent Counsel (Parts 700--799)
Title 29--Labor
Subtitle A--Office of the Secretary of Labor (Parts
0--99)
Subtitle B--Regulations Relating to Labor
I National Labor Relations Board (Parts 100--199)
II Office of Labor-Management Standards, Department of
Labor (Parts 200--299)
III National Railroad Adjustment Board (Parts 300--399)
IV Office of Labor-Management Standards, Department of
Labor (Parts 400--499)
V Wage and Hour Division, Department of Labor (Parts
500--899)
IX Construction Industry Collective Bargaining Commission
(Parts 900--999)
X National Mediation Board (Parts 1200--1299)
[[Page 166]]
XII Federal Mediation and Conciliation Service (Parts
1400--1499)
XIV Equal Employment Opportunity Commission (Parts 1600--
1699)
XVII Occupational Safety and Health Administration,
Department of Labor (Parts 1900--1999)
XX Occupational Safety and Health Review Commission
(Parts 2200--2499)
XXV Pension and Welfare Benefits Administration,
Department of Labor (Parts 2500--2599)
XXVII Federal Mine Safety and Health Review Commission
(Parts 2700--2799)
XL Pension Benefit Guaranty Corporation (Parts 4000--
4999)
Title 30--Mineral Resources
I Mine Safety and Health Administration, Department of
Labor (Parts 1--199)
II Minerals Management Service, Department of the
Interior (Parts 200--299)
III Board of Surface Mining and Reclamation Appeals,
Department of the Interior (Parts 300--399)
IV Geological Survey, Department of the Interior (Parts
400--499)
VI Bureau of Mines, Department of the Interior (Parts
600--699)
VII Office of Surface Mining Reclamation and Enforcement,
Department of the Interior (Parts 700--999)
Title 31--Money and Finance: Treasury
Subtitle A--Office of the Secretary of the Treasury
(Parts 0--50)
Subtitle B--Regulations Relating to Money and Finance
I Monetary Offices, Department of the Treasury (Parts
51--199)
II Fiscal Service, Department of the Treasury (Parts
200--399)
IV Secret Service, Department of the Treasury (Parts
400--499)
V Office of Foreign Assets Control, Department of the
Treasury (Parts 500--599)
VI Bureau of Engraving and Printing, Department of the
Treasury (Parts 600--699)
VII Federal Law Enforcement Training Center, Department of
the Treasury (Parts 700--799)
VIII Office of International Investment, Department of the
Treasury (Parts 800--899)
Title 32--National Defense
Subtitle A--Department of Defense
I Office of the Secretary of Defense (Parts 1--399)
V Department of the Army (Parts 400--699)
VI Department of the Navy (Parts 700--799)
[[Page 167]]
VII Department of the Air Force (Parts 800--1099)
Subtitle B--Other Regulations Relating to National
Defense
XII Defense Logistics Agency (Parts 1200--1299)
XVI Selective Service System (Parts 1600--1699)
XIX Central Intelligence Agency (Parts 1900--1999)
XX Information Security Oversight Office, National
Archives and Records Administration (Parts 2000--
2099)
XXI National Security Council (Parts 2100--2199)
XXIV Office of Science and Technology Policy (Parts 2400--
2499)
XXVII Office for Micronesian Status Negotiations (Parts
2700--2799)
XXVIII Office of the Vice President of the United States
(Parts 2800--2899)
XXIX Presidential Commission on the Assignment of Women in
the Armed Forces (Part 2900)
Title 33--Navigation and Navigable Waters
I Coast Guard, Department of Transportation (Parts 1--
199)
II Corps of Engineers, Department of the Army (Parts
200--399)
IV Saint Lawrence Seaway Development Corporation,
Department of Transportation (Parts 400--499)
Title 34--Education
Subtitle A--Office of the Secretary, Department of
Education (Parts 1--99)
Subtitle B--Regulations of the Offices of the
Department of Education
I Office for Civil Rights, Department of Education
(Parts 100--199)
II Office of Elementary and Secondary Education,
Department of Education (Parts 200--299)
III Office of Special Education and Rehabilitative
Services, Department of Education (Parts 300--399)
IV Office of Vocational and Adult Education, Department
of Education (Parts 400--499)
V Office of Bilingual Education and Minority Languages
Affairs, Department of Education (Parts 500--599)
VI Office of Postsecondary Education, Department of
Education (Parts 600--699)
VII Office of Educational Research and Improvement,
Department of Education (Parts 700--799)
XI National Institute for Literacy (Parts 1100--1199)
Subtitle C--Regulations Relating to Education
XII National Council on Disability (Parts 1200--1299)
[[Page 168]]
Title 35--Panama Canal
I Panama Canal Regulations (Parts 1--299)
Title 36--Parks, Forests, and Public Property
I National Park Service, Department of the Interior
(Parts 1--199)
II Forest Service, Department of Agriculture (Parts 200--
299)
III Corps of Engineers, Department of the Army (Parts
300--399)
IV American Battle Monuments Commission (Parts 400--499)
V Smithsonian Institution (Parts 500--599)
VII Library of Congress (Parts 700--799)
VIII Advisory Council on Historic Preservation (Parts 800--
899)
IX Pennsylvania Avenue Development Corporation (Parts
900--999)
X Presidio Trust (Parts 1000--1099)
XI Architectural and Transportation Barriers Compliance
Board (Parts 1100--1199)
XII National Archives and Records Administration (Parts
1200--1299)
XIV Assassination Records Review Board (Parts 1400--1499)
Title 37--Patents, Trademarks, and Copyrights
I Patent and Trademark Office, Department of Commerce
(Parts 1--199)
II Copyright Office, Library of Congress (Parts 200--299)
IV Assistant Secretary for Technology Policy, Department
of Commerce (Parts 400--499)
V Under Secretary for Technology, Department of Commerce
(Parts 500--599)
Title 38--Pensions, Bonuses, and Veterans' Relief
I Department of Veterans Affairs (Parts 0--99)
Title 39--Postal Service
I United States Postal Service (Parts 1--999)
III Postal Rate Commission (Parts 3000--3099)
Title 40--Protection of Environment
I Environmental Protection Agency (Parts 1--799)
V Council on Environmental Quality (Parts 1500--1599)
Title 41--Public Contracts and Property Management
Subtitle B--Other Provisions Relating to Public
Contracts
50 Public Contracts, Department of Labor (Parts 50-1--50-
999)
[[Page 169]]
51 Committee for Purchase From People Who Are Blind or
Severely Disabled (Parts 51-1--51-99)
60 Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor (Parts
60-1--60-999)
61 Office of the Assistant Secretary for Veterans
Employment and Training, Department of Labor
(Parts 61-1--61-999)
Subtitle C--Federal Property Management Regulations
System
101 Federal Property Management Regulations (Parts 101-1--
101-99)
105 General Services Administration (Parts 105-1--105-999)
109 Department of Energy Property Management Regulations
(Parts 109-1--109-99)
114 Department of the Interior (Parts 114-1--114-99)
115 Environmental Protection Agency (Parts 115-1--115-99)
128 Department of Justice (Parts 128-1--128-99)
Subtitle D--Other Provisions Relating to Property
Management [Reserved]
Subtitle E--Federal Information Resources Management
Regulations System
201 Federal Information Resources Management Regulation
(Parts 201-1--201-99) [Reserved]
Subtitle F--Federal Travel Regulation System
300 General (Parts 300-1--300.99)
301 Temporary Duty (TDY) Travel Allowances (Parts 301-1--
301-99)
302 Relocation Allowances (Parts 302-1--302-99)
303 Payment of Expenses Connected with the Death of
Certain Employees (Parts 303-1--303-2)
304 Payment from a Non-Federal Source for Travel Expenses
(Parts 304-1--304-99)
Title 42--Public Health
I Public Health Service, Department of Health and Human
Services (Parts 1--199)
IV Health Care Financing Administration, Department of
Health and Human Services (Parts 400--499)
V Office of Inspector General-Health Care, Department of
Health and Human Services (Parts 1000--1999)
Title 43--Public Lands: Interior
Subtitle A--Office of the Secretary of the Interior
(Parts 1--199)
Subtitle B--Regulations Relating to Public Lands
I Bureau of Reclamation, Department of the Interior
(Parts 200--499)
II Bureau of Land Management, Department of the Interior
(Parts 1000--9999)
[[Page 170]]
III Utah Reclamation Mitigation and Conservation
Commission (Parts 10000--10005)
Title 44--Emergency Management and Assistance
I Federal Emergency Management Agency (Parts 0--399)
IV Department of Commerce and Department of
Transportation (Parts 400--499)
Title 45--Public Welfare
Subtitle A--Department of Health and Human Services
(Parts 1--199)
Subtitle B--Regulations Relating to Public Welfare
II Office of Family Assistance (Assistance Programs),
Administration for Children and Families,
Department of Health and Human Services (Parts
200--299)
III Office of Child Support Enforcement (Child Support
Enforcement Program), Administration for Children
and Families, Department of Health and Human
Services (Parts 300--399)
IV Office of Refugee Resettlement, Administration for
Children and Families Department of Health and
Human Services (Parts 400--499)
V Foreign Claims Settlement Commission of the United
States, Department of Justice (Parts 500--599)
VI National Science Foundation (Parts 600--699)
VII Commission on Civil Rights (Parts 700--799)
VIII Office of Personnel Management (Parts 800--899)
X Office of Community Services, Administration for
Children and Families, Department of Health and
Human Services (Parts 1000--1099)
XI National Foundation on the Arts and the Humanities
(Parts 1100--1199)
XII Corporation for National and Community Service (Parts
1200--1299)
XIII Office of Human Development Services, Department of
Health and Human Services (Parts 1300--1399)
XVI Legal Services Corporation (Parts 1600--1699)
XVII National Commission on Libraries and Information
Science (Parts 1700--1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800--
1899)
XXI Commission on Fine Arts (Parts 2100--2199)
XXII Christopher Columbus Quincentenary Jubilee Commission
(Parts 2200--2299)
XXIII Arctic Research Commission (Part 2301)
XXIV James Madison Memorial Fellowship Foundation (Parts
2400--2499)
XXV Corporation for National and Community Service (Parts
2500--2599)
[[Page 171]]
Title 46--Shipping
I Coast Guard, Department of Transportation (Parts 1--
199)
II Maritime Administration, Department of Transportation
(Parts 200--399)
III Coast Guard (Great Lakes Pilotage), Department of
Transportation (Parts 400--499)
IV Federal Maritime Commission (Parts 500--599)
Title 47--Telecommunication
I Federal Communications Commission (Parts 0--199)
II Office of Science and Technology Policy and National
Security Council (Parts 200--299)
III National Telecommunications and Information
Administration, Department of Commerce (Parts
300--399)
Title 48--Federal Acquisition Regulations System
1 Federal Acquisition Regulation (Parts 1--99)
2 Department of Defense (Parts 200--299)
3 Department of Health and Human Services (Parts 300--
399)
4 Department of Agriculture (Parts 400--499)
5 General Services Administration (Parts 500--599)
6 Department of State (Parts 600--699)
7 United States Agency for International Development
(Parts 700--799)
8 Department of Veterans Affairs (Parts 800--899)
9 Department of Energy (Parts 900--999)
10 Department of the Treasury (Parts 1000--1099)
12 Department of Transportation (Parts 1200--1299)
13 Department of Commerce (Parts 1300--1399)
14 Department of the Interior (Parts 1400--1499)
15 Environmental Protection Agency (Parts 1500--1599)
16 Office of Personnel Management Federal Employees
Health Benefits Acquisition Regulation (Parts
1600--1699)
17 Office of Personnel Management (Parts 1700--1799)
18 National Aeronautics and Space Administration (Parts
1800--1899)
19 United States Information Agency (Parts 1900--1999)
20 Nuclear Regulatory Commission (Parts 2000--2099)
21 Office of Personnel Management, Federal Employees
Group Life Insurance Federal Acquisition
Regulation (Parts 2100--2199)
23 Social Security Administration (Parts 2300--2399)
24 Department of Housing and Urban Development (Parts
2400--2499)
25 National Science Foundation (Parts 2500--2599)
28 Department of Justice (Parts 2800--2899)
29 Department of Labor (Parts 2900--2999)
[[Page 172]]
34 Department of Education Acquisition Regulation (Parts
3400--3499)
35 Panama Canal Commission (Parts 3500--3599)
44 Federal Emergency Management Agency (Parts 4400--4499)
51 Department of the Army Acquisition Regulations (Parts
5100--5199)
52 Department of the Navy Acquisition Regulations (Parts
5200--5299)
53 Department of the Air Force Federal Acquisition
Regulation Supplement (Parts 5300--5399)
54 Defense Logistics Agency, Department of Defense (Part
5452)
57 African Development Foundation (Parts 5700--5799)
61 General Services Administration Board of Contract
Appeals (Parts 6100--6199)
63 Department of Transportation Board of Contract Appeals
(Parts 6300--6399)
99 Cost Accounting Standards Board, Office of Federal
Procurement Policy, Office of Management and
Budget (Parts 9900--9999)
Title 49--Transportation
Subtitle A--Office of the Secretary of Transportation
(Parts 1--99)
Subtitle B--Other Regulations Relating to
Transportation
I Research and Special Programs Administration,
Department of Transportation (Parts 100--199)
II Federal Railroad Administration, Department of
Transportation (Parts 200--299)
III Federal Highway Administration, Department of
Transportation (Parts 300--399)
IV Coast Guard, Department of Transportation (Parts 400--
499)
V National Highway Traffic Safety Administration,
Department of Transportation (Parts 500--599)
VI Federal Transit Administration, Department of
Transportation (Parts 600--699)
VII National Railroad Passenger Corporation (AMTRAK)
(Parts 700--799)
VIII National Transportation Safety Board (Parts 800--999)
X Surface Transportation Board, Department of
Transportation (Parts 1000--1399)
XI Bureau of Transportation Statistics, Department of
Transportation (Parts 1400--1499)
Title 50--Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of
the Interior (Parts 1--199)
[[Page 173]]
II National Marine Fisheries Service, National Oceanic
and Atmospheric Administration, Department of
Commerce (Parts 200--299)
III International Fishing and Related Activities (Parts
300--399)
IV Joint Regulations (United States Fish and Wildlife
Service, Department of the Interior and National
Marine Fisheries Service, National Oceanic and
Atmospheric Administration, Department of
Commerce); Endangered Species Committee
Regulations (Parts 400--499)
V Marine Mammal Commission (Parts 500--599)
VI Fishery Conservation and Management, National Oceanic
and Atmospheric Administration, Department of
Commerce (Parts 600--699)
CFR Index and Finding Aids
Subject/Agency Index
List of Agency Prepared Indexes
Parallel Tables of Statutory Authorities and Rules
List of CFR Titles, Chapters, Subchapters, and Parts
Alphabetical List of Agencies Appearing in the CFR
[[Page 175]]
Alphabetical List of Agencies Appearing in the CFR
(Revised as of March 31, 1999)
CFR Title, Subtitle or
Agency Chapter
Administrative Committee of the Federal Register 1, I
Advanced Research Projects Agency 32, I
Advisory Commission on Intergovernmental 5, VII
Relations
Advisory Committee on Federal Pay 5, IV
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV
Federal Acquisition Regulation 48, 57
Agency for International Development 22, II
Federal Acquisition Regulation 48, 7
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agriculture Department
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Animal and Plant Health Inspection Service 7, III; 9, I
Chief Financial Officer, Office of 7, XXX
Commodity Credit Corporation 7, XIV
Cooperative State Research, Education, and 7, XXXIV
Extension Service
Economic Research Service 7, XXXVII
Energy, Office of 7, XXIX
Environmental Quality, Office of 7, XXXI
Farm Service Agency 7, VII, XVIII
Federal Acquisition Regulation 48, 4
Federal Crop Insurance Corporation 7, IV
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Forest Service 36, II
Grain Inspection, Packers and Stockyards 7, VIII; 9, II
Administration
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
Natural Resources Conservation Service 7, VI
Operations, Office of 7, XXVIII
Procurement and Property Management, Office of 7, XXXII
Rural Business-Cooperative Service 7, XVIII, XLII
Rural Development Administration 7, XLII
Rural Housing Service 7, XVIII, XXXV
Rural Telephone Bank 7, XVI
Rural Utilities Service 7, XVII, XVIII, XLII
Secretary of Agriculture, Office of 7, Subtitle A
Transportation, Office of 7, XXXIII
World Agricultural Outlook Board 7, XXXVIII
Air Force Department 32, VII
Federal Acquisition Regulation Supplement 48, 53
Alcohol, Tobacco and Firearms, Bureau of 27, I
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
American Indians, Office of the Special Trustee 25, VII
Animal and Plant Health Inspection Service 7, III; 9, I
Appalachian Regional Commission 5, IX
[[Page 176]]
Architectural and Transportation Barriers 36, XI
Compliance Board
Arctic Research Commission 45, XXIII
Armed Forces Retirement Home 5, XI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 51
Assassination Records Review Board 36, XIV
Benefits Review Board 20, VII
Bilingual Education and Minority Languages 34, V
Affairs, Office of
Blind or Severely Disabled, Committee for 41, 51
Purchase From People Who Are
Board for International Broadcasting 22, XIII
Census Bureau 15, I
Central Intelligence Agency 32, XIX
Chief Financial Officer, Office of 7, XXX
Child Support Enforcement, Office of 45, III
Children and Families, Administration for 45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee 45, XXII
Commission
Civil Rights, Commission on 45, VII
Civil Rights, Office for 34, I
Coast Guard 33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage) 46, III
Commerce Department 44, IV
Census Bureau 15, I`
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Emergency Management and Assistance 44, IV
Export Administration, Bureau of 15, VII
Federal Acquisition Regulation 48, 13
Fishery Conservation and Management 50, VI
Foreign-Trade Zones Board 15, IV
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV, VI
National Oceanic and Atmospheric 15, IX; 50, II, III, IV,
Administration VI
National Telecommunications and Information 15, XXIII; 47, III
Administration
National Weather Service 15, IX
Patent and Trademark Office 37, I
Productivity, Technology and Innovation, 37, IV
Assistant Secretary for
Secretary of Commerce, Office of 15, Subtitle A
Technology, Under Secretary for 37, V
Technology Administration 15, XI
Technology Policy, Assistant Secretary for 37, IV
Commercial Space Transportation 14, III
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 5, XLI; 17, I
Community Planning and Development, Office of 24, V, VI
Assistant Secretary for
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining 29, IX
Commission
Consumer Product Safety Commission 5, LXXI; 16, II
Cooperative State Research, Education, and 7, XXXIV
Extension Service
Copyright Office 37, II
Corporation for National and Community Service 45, XII, XXV
Cost Accounting Standards Board 48, 99
Council on Environmental Quality 40, V
Customs Service, United States 19, I
Defense Contract Audit Agency 32, I
Defense Department 5, XXVI; 32, Subtitle A
Advanced Research Projects Agency 32, I
Air Force Department 32, VII
[[Page 177]]
Army Department 32, V; 33, II; 36, III,
48, 51
Defense Intelligence Agency 32, I
Defense Logistics Agency 32, I, XII; 48, 54
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 2
National Imagery and Mapping Agency 32, I
Navy Department 32, VI; 48, 52
Secretary of Defense, Office of 32, I
Defense Contract Audit Agency 32, I
Defense Intelligence Agency 32, I
Defense Logistics Agency 32, XII; 48, 54
Defense Nuclear Facilities Safety Board 10, XVII
Delaware River Basin Commission 18, III
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Economic Research Service 7, XXXVII
Education, Department of 5, LIII
Bilingual Education and Minority Languages 34, V
Affairs, Office of
Civil Rights, Office for 34, I
Educational Research and Improvement, Office 34, VII
of
Elementary and Secondary Education, Office of 34, II
Federal Acquisition Regulation 48, 34
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, 34, III
Office of
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Employees' Compensation Appeals Board 20, IV
Employees Loyalty Board 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 5, XXIII; 10, II, III, X
Federal Acquisition Regulation 48, 9
Federal Energy Regulatory Commission 5, XXIV; 18, I
Property Management Regulations 41, 109
Energy, Office of 7, XXIX
Engineers, Corps of 33, II; 36, III
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 5, LIV; 40, I
Federal Acquisition Regulation 48, 15
Property Management Regulations 41, 115
Environmental Quality, Office of 7, XXXI
Equal Employment Opportunity Commission 5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary 24, I
for
Executive Office of the President 3, I
Administration, Office of 5, XV
Environmental Quality, Council on 40, V
Management and Budget, Office of 25, III, LXXVII; 48, 99
National Drug Control Policy, Office of 21, III
National Security Council 32, XXI; 47, 2
Presidential Documents 3
Science and Technology Policy, Office of 32, XXIV; 47, II
Trade Representative, Office of the United 15, XX
States
Export Administration, Bureau of 15, VII
Export-Import Bank of the United States 5, LII; 12, IV
Family Assistance, Office of 45, II
Farm Credit Administration 5, XXXI; 12, VI
Farm Credit System Insurance Corporation 5, XXX; 12, XIV
Farm Service Agency 7, VII, XVIII
Federal Acquisition Regulation 48, 1
[[Page 178]]
Federal Aviation Administration 14, I
Commercial Space Transportation 14, III
Federal Claims Collection Standards 4, II
Federal Communications Commission 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 5, XXII; 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I
Federal Acquisition Regulation 48, 44
Federal Employees Group Life Insurance Federal 48, 21
Acquisition Regulation
Federal Employees Health Benefits Acquisition 48, 16
Regulation
Federal Energy Regulatory Commission 5, XXIV; 18, I
Federal Financial Institutions Examination 12, XI
Council
Federal Financing Bank 12, VIII
Federal Highway Administration 23, I, II; 49, III
Federal Home Loan Mortgage Corporation 1, IV
Federal Housing Enterprise Oversight Office 12, XVII
Federal Housing Finance Board 12, IX
Federal Labor Relations Authority, and General 5, XIV; 22, XIV
Counsel of the Federal Labor Relations
Authority
Federal Law Enforcement Training Center 31, VII
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on 5, IV
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Property Management Regulations System 41, Subtitle C
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Board of Governors 5, LVIII
Federal Retirement Thrift Investment Board 5, VI, LXXVI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 5, XLVII; 16, I
Federal Transit Administration 49, VI
Federal Travel Regulation System 41, Subtitle F
Fine Arts, Commission on 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of the 45, V
United States
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Accounting Office 4, I, II
General Services Administration 5, LVII
Contract Appeals, Board of 48, 61
Federal Acquisition Regulation 48, 5
Federal Property Management Regulations System 41, 101, 105
Federal Travel Regulation System 41, Subtitle F
General 41, 300
Payment From a Non-Federal Source for Travel 41, 304
Expenses
Payment of Expenses Connected With the Death 41, 303
of Certain Employees
Relocation Allowances 41, 302
[[Page 179]]
Temporary Duty (TDY) Travel Allowances 41, 301
Geological Survey 30, IV
Government Ethics, Office of 5, XVI
Government National Mortgage Association 24, III
Grain Inspection, Packers and Stockyards 7, VIII; 9, II
Administration
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 5, XLV; 45, Subtitle A
Child Support Enforcement, Office of 45, III
Children and Families, Administration for 45, II, III, IV, X
Community Services, Office of 45, X
Family Assistance, Office of 45, II
Federal Acquisition Regulation 48, 3
Food and Drug Administration 21, I
Health Care Financing Administration 42, IV
Human Development Services, Office of 45, XIII
Indian Health Service 25, V
Inspector General (Health Care), Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Health Care Financing Administration 42, IV
Housing and Urban Development, Department of 5, LXV; 24, Subtitle B
Community Planning and Development, Office of 24, V, VI
Assistant Secretary for
Equal Opportunity, Office of Assistant 24, I
Secretary for
Federal Acquisition Regulation 48, 24
Federal Housing Enterprise Oversight, Office 12, XVII
of
Government National Mortgage Association 24, III
Housing--Federal Housing Commissioner, Office 24, II, VIII, X, XX
of Assistant Secretary for
Inspector General, Office of 24, XII
Multifamily Housing Assistance Restructuring, 24, IV
Office of
Public and Indian Housing, Office of Assistant 24, IX
Secretary for
Secretary, Office of 24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of 24, II, VIII, X, XX
Assistant Secretary for
Human Development Services, Office of 45, XIII
Immigration and Naturalization Service 8, I
Independent Counsel, Office of 28, VII
Indian Affairs, Bureau of 25, I, V
Indian Affairs, Office of the Assistant 25, VI
Secretary
Indian Arts and Crafts Board 25, II
Indian Health Service 25, V
Information Agency, United States 22, V
Federal Acquisition Regulation 48, 19
Information Resources Management, Office of 7, XXVII
Information Security Oversight Office, National 32, XX
Archives and Records Administration
Inspector General
Agriculture Department 7, XXVI
Health and Human Services Department 42, V
Housing and Urban Development Department 24, XII
Institute of Peace, United States 22, XVII
Inter-American Foundation 5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission 5, VII
on
Interior Department
American Indians, Office of the Special 25, VII
Trustee
Endangered Species Committee 50, IV
Federal Acquisition Regulation 48, 14
Federal Property Management Regulations System 41, 114
Fish and Wildlife Service, United States 50, I, IV
Geological Survey 30, IV
Indian Affairs, Bureau of 25, I, V
Indian Affairs, Office of the Assistant 25, VI
Secretary
Indian Arts and Crafts Board 25, II
Land Management, Bureau of 43, II
Minerals Management Service 30, II
Mines, Bureau of 30, VI
[[Page 180]]
National Indian Gaming Commission 25, III
National Park Service 36, I
Reclamation, Bureau of 43, I
Secretary of the Interior, Office of 43, Subtitle A
Surface Mining and Reclamation Appeals, Board 30, III
of
Surface Mining Reclamation and Enforcement, 30, VII
Office of
Internal Revenue Service 26, I
International Boundary and Water Commission, 22, XI
United States and Mexico, United States
Section
International Development, Agency for 22, II
Federal Acquisition Regulation 48, 7
International Development Cooperation Agency, 22, XII
United States
International Development, Agency for 22, II; 48, 7
Overseas Private Investment Corporation 5, XXXIII; 22, VII
International Fishing and Related Activities 50, III
International Investment, Office of 31, VIII
International Joint Commission, United States 22, IV
and Canada
International Organizations Employees Loyalty 5, V
Board
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 5, XL
James Madison Memorial Fellowship Foundation 45, XXIV
Japan-United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 5, XXVIII; 28, I
Drug Enforcement Administration 21, II
Federal Acquisition Regulation 48, 28
Federal Claims Collection Standards 4, II
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the 45, V
United States
Immigration and Naturalization Service 8, I
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Property Management Regulations 41, 128
Labor Department 5, XLII
Benefits Review Board 20, VII
Employees' Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Acquisition Regulation 48, 29
Federal Contract Compliance Programs, Office 41, 60
of
Federal Procurement Regulations System 41, 50
Labor-Management Standards, Office of 29, II, IV
Mine Safety and Health Administration 30, I
Occupational Safety and Health Administration 29, XVII
Pension and Welfare Benefits Administration 29, XXV
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans' Employment and Training, Office of 41, 61; 20, IX
the Assistant Secretary for
Wage and Hour Division 29, V
Workers' Compensation Programs, Office of 20, I
Labor-Management Standards, Office of 29, II, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Management and Budget, Office of 5, III, LXXVII; 48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II
Micronesian Status Negotiations, Office for 32, XXVII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Mines, Bureau of 30, VI
[[Page 181]]
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Multifamily Housing Assistance Restructuring, 24, IV
Office of
National Aeronautics and Space Administration 5, LIX; 14, V
Federal Acquisition Regulation 48, 18
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National Archives and Records Administration 5, LXVI; 36, XII
Information Security Oversight Office 32, XX
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information 45, XVII
Science
National and Community Service, Corporation for 45, XII, XXV
National Council on Disability 34, XII
National Credit Union Administration 12, VII
National Drug Control Policy, Office of 21, III
National Foundation on the Arts and the 45, XI
Humanities
National Highway Traffic Safety Administration 23, II, III; 49, V
National Imagery and Mapping Agency 32, I
National Indian Gaming Commission 25, III
National Institute for Literacy 34, XI
National Institute of Standards and Technology 15, II
National Labor Relations Board 5, LXI; 29, I
National Marine Fisheries Service 50, II, IV, VI
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV,
VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 5, XLIII; 45, VI
Federal Acquisition Regulation 48, 25
National Security Council 32, XXI
National Security Council and Office of Science 47, II
and Technology Policy
National Telecommunications and Information 15, XXIII; 47, III
Administration
National Transportation Safety Board 49, VIII
National Weather Service 15, IX
Natural Resources Conservation Service 7, VI
Navajo and Hopi Indian Relocation, Office of 25, IV
Navy Department 32, VI
Federal Acquisition Regulation 48, 52
Neighborhood Reinvestment Corporation 24, XXV
Northeast Dairy Compact Commission 7, XIII
Nuclear Regulatory Commission 5, XLVIII; 10, I
Federal Acquisition Regulation 48, 20
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Offices of Independent Counsel 28, VI
Operations Office 7, XXVIII
Overseas Private Investment Corporation 5, XXXIII; 22, VII
Panama Canal Commission 48, 35
Panama Canal Regulations 35, I
Patent and Trademark Office 37, I
Payment From a Non-Federal Source for Travel 41, 304
Expenses
Payment of Expenses Connected With the Death of 41, 303
Certain Employees
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension and Welfare Benefits Administration 29, XXV
Pension Benefit Guaranty Corporation 29, XL
Personnel Management, Office of 5, I, XXXV; 45, VIII
Federal Acquisition Regulation 48, 17
Federal Employees Group Life Insurance Federal 48, 21
Acquisition Regulation
[[Page 182]]
Federal Employees Health Benefits Acquisition 48, 16
Regulation
Postal Rate Commission 5, XLVI; 39, III
Postal Service, United States 5, LX; 39, I
Postsecondary Education, Office of 34, VI
President's Commission on White House 1, IV
Fellowships
Presidential Commission on the Assignment of 32, XXIX
Women in the Armed Forces
Presidential Documents 3
Presidio Trust 36, X
Prisons, Bureau of 28, V
Procurement and Property Management, Office of 7, XXXII
Productivity, Technology and Innovation, 37, IV
Assistant Secretary
Public Contracts, Department of Labor 41, 50
Public and Indian Housing, Office of Assistant 24, IX
Secretary for
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation, Bureau of 43, I
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Special Programs Administration 49, I
Rural Business-Cooperative Service 7, XVIII, XLII
Rural Development Administration 7, XLII
Rural Housing Service 7, XVIII, XXXV
Rural Telephone Bank 7, XVI
Rural Utilities Service 7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and 47, II
National Security Council
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 13, I
Smithsonian Institution 36, V
Social Security Administration 20, III; 48, 23
Soldiers' and Airmen's Home, United States 5, XI
Special Counsel, Office of 5, VIII
Special Education and Rehabilitative Services, 34, III
Office of
State Department 22, I
Federal Acquisition Regulation 48, 6
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, 30, VII
Office of
Surface Transportation Board 49, X
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Technology Policy, Assistant Secretary for 37, IV
Technology, Under Secretary for 37, V
Tennessee Valley Authority 5, LXIX; 18, XIII
Thrift Supervision Office, Department of the 12, V
Treasury
Trade Representative, United States, Office of 15, XX
Transportation, Department of 5, L
Coast Guard 33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage) 46, III
Commercial Space Transportation 14, III
Contract Appeals, Board of 48, 63
Emergency Management and Assistance 44, IV
Federal Acquisition Regulation 48, 12
Federal Aviation Administration 14, I
Federal Highway Administration 23, I, II; 49, III
Federal Railroad Administration 49, II
Federal Transit Administration 49, VI
Maritime Administration 46, II
National Highway Traffic Safety Administration 23, II, III; 49, V
Research and Special Programs Administration 49, I
Saint Lawrence Seaway Development Corporation 33, IV
[[Page 183]]
Secretary of Transportation, Office of 14, II; 49, Subtitle A
Surface Transportation Board 49, X
Transportation Statistics Bureau 49, XI
Transportation, Office of 7, XXXIII
Transportation Statistics Brureau 49, XI
Travel Allowances, Temporary Duty (TDY) 41, 301
Treasury Department 5, XXI; 12, XV; 17, IV
Alcohol, Tobacco and Firearms, Bureau of 27, I
Community Development Financial Institutions 12, XVIII
Fund
Comptroller of the Currency 12, I
Customs Service, United States 19, I
Engraving and Printing, Bureau of 31, VI
Federal Acquisition Regulation 48, 10
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
International Investment, Office of 31, VIII
Monetary Offices 31, I
Secret Service 31, IV
Secretary of the Treasury, Office of 31, Subtitle A
Thrift Supervision, Office of 12, V
Truman, Harry S. Scholarship Foundation 45, XVIII
United States and Canada, International Joint 22, IV
Commission
United States and Mexico, International Boundary 22, XI
and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation 43, III
Commission
Veterans Affairs Department 38, I
Federal Acquisition Regulation 48, 8
Veterans' Employment and Training, Office of the 41, 61; 20, IX
Assistant Secretary for
Vice President of the United States, Office of 32, XXVIII
Vocational and Adult Education, Office of 34, IV
Wage and Hour Division 29, V
Water Resources Council 18, VI
Workers' Compensation Programs, Office of 20, I
World Agricultural Outlook Board 7, XXXVIII
[[Page 185]]
Table of OMB Control NumbersSecs.
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Sec. 602.101 OMB Control numbers.
(a) Purpose. This part collects and displays the control numbers
assigned to collections of information in Internal Revenue Service
regulations by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1980. The Internal Revenue Service intends
that this part comply with the requirements of Secs. 1320.7(f), 1320.12,
1320.13, and 1320.14 of 5 CFR part 1320 (OMB regulations implementing
the Paperwork Reduction Act), for the display of control numbers
assigned by OMB to collections of information in Internal Revenue
Service regulations. This part does not display control numbers assigned
by the Office of Management and Budget to collections of information of
the Bureau of Alcohol, Tobacco, and Firearms.
(b) Display.
------------------------------------------------------------------------
Current OMB
CFR part or section where identified and described control No.
------------------------------------------------------------------------
1.23-5..................................................... 1545-0074
1.25-1T.................................................... 1545-0922
1545-0930
1.25-2T.................................................... 1545-0922
1545-0930
1.25-3T.................................................... 1545-0922
1545-0930
1.25-4T.................................................... 1545-0922
1.25-5T.................................................... 1545-0922
1.25-6T.................................................... 1545-0922
1.25-7T.................................................... 1545-0922
1.25-8T.................................................... 1545-0922
1.28-1..................................................... 1545-0619
1.31-2..................................................... 1545-0074
1.32-2..................................................... 1545-0074
1.32-3T.................................................... 1545-1575
1.37-1..................................................... 1545-0074
1.37-3..................................................... 1545-0074
1.41-2..................................................... 1545-0619
1.41-3..................................................... 1545-0619
1.41-4A.................................................... 1545-0074
1.41-4 (b) and (c)......................................... 1545-0074
1.41-8(d).................................................. 1545-0732
1.41-9..................................................... 1545-0619
1.42-1T.................................................... 1545-0984
1545-0988
1.42-2..................................................... 1545-1005
1.42-5..................................................... 1545-1291
1.42-6..................................................... 1545-1102
1.42-8..................................................... 1545-1102
1.42-10.................................................... 1545-1102
1.42-13.................................................... 1545-1357
1.42-14.................................................... 1545-1423
1.43-3(a)(3)............................................... 1545-1292
1.43-3(b)(3)............................................... 1545-1292
1.44A-1.................................................... 1545-0068
1.44A-3.................................................... 1545-0074
1.44B-1.................................................... 1545-0219
1.458-1.................................................... 1545-0879
1.458-2.................................................... 1545-0152
1.46-1..................................................... 1545-0123
1545-0155
1.46-3..................................................... 1545-0155
1.46-4..................................................... 1545-0155
1.46-5..................................................... 1545-0155
1.46-6..................................................... 1545-0155
1.46-8..................................................... 1545-0155
1.46-9..................................................... 1545-0155
1.46-10.................................................... 1545-0118
1.46-11.................................................... 1545-0155
1.47-1..................................................... 1545-0166
1545-0155
1.47-3..................................................... 1545-0166
1545-0155
1.47-4..................................................... 1545-0123
1.47-5..................................................... 1545-0092
1.47-6..................................................... 1545-0099
1.48-3..................................................... 1545-0155
1.48-4..................................................... 1545-0808
1545-0155
1.48-5..................................................... 1545-0155
1.48-6..................................................... 1545-0155
1.48-12.................................................... 1545-0155
1.50A-1.................................................... 1545-0895
1.50A-2.................................................... 1545-0895
1.50A-3.................................................... 1545-0895
1.50A-4.................................................... 1545-0895
1.50A-5.................................................... 1545-0895
1.50A-6.................................................... 1545-0895
1.50A-7.................................................... 1545-0895
1.50B-1.................................................... 1545-0895
1.50B-2.................................................... 1545-0895
1.50B-3.................................................... 1545-0895
1.50B-4.................................................... 1545-0895
1.50B-5.................................................... 1545-0895
1.51-1..................................................... 1545-0219
1545-0241
1545-0244
[[Page 186]]
1545-0797
1.52-2..................................................... 1545-0219
1.52-3..................................................... 1545-0219
1.56-1..................................................... 1545-0123
1.56(g)-1.................................................. 1545-1233
1.56A-1.................................................... 1545-0227
1.56A-2.................................................... 1545-0227
1.56A-3.................................................... 1545-0227
1.56A-4.................................................... 1545-0227
1.56A-5.................................................... 1545-0227
1.57-5..................................................... 1545-0227
1.58-1..................................................... 1545-0175
1.58-9(c)(5)(iii)(B)....................................... 1545-1093
1.58-9(e)(3)............................................... 1545-1093
1.61-2..................................................... 1545-0771
1.61-2T.................................................... 1545-0771
1.61-4..................................................... 1545-0187
1.61-15.................................................... 1545-0074
1.62-2..................................................... 1545-1148
1.63-1..................................................... 1545-0074
1.67-2T.................................................... 1545-0110
1.67-3T.................................................... 1545-0118
1.67-3..................................................... 1545-1018
1.71-1T.................................................... 1545-0074
1.72-4..................................................... 1545-0074
1.72-6..................................................... 1545-0074
1.72-9..................................................... 1545-0074
1.72-17.................................................... 1545-0074
1.72-17A................................................... 1545-0074
1.72-18.................................................... 1545-0074
1.74-1..................................................... 1545-1100
1.79-2..................................................... 1545-0074
1.79-3..................................................... 1545-0074
1.83-2..................................................... 1545-0074
1.83-5..................................................... 1545-0074
1.83-6..................................................... 1545-1448
1.103-10................................................... 1545-0123
1545-0940
1.103-15AT................................................. 1545-0720
1.103-18................................................... 1545-1226
1.103(n)-2T................................................ 1545-0874
1.103(n)-4T................................................ 1545-0874
1.103A-2................................................... 1545-0720
1.105-4.................................................... 1545-0074
1.105-5.................................................... 1545-0074
1.105-6.................................................... 1545-0074
1.108-4.................................................... 1545-1539
1.108-5.................................................... 1545-1421
1.117-5.................................................... 1545-0869
1.119-1.................................................... 1545-0067
1.120-3.................................................... 1545-0057
1.121-1.................................................... 1545-0072
1.121-2.................................................... 1545-0072
1.121-3.................................................... 1545-0072
1.121-4.................................................... 1545-0072
1545-0091
1.121-5.................................................... 1545-0072
1.127-2.................................................... 1545-0768
1.132-1T................................................... 1545-0771
1.132-2.................................................... 1545-0771
1.132-2T................................................... 1545-0771
1.132-5.................................................... 1545-0771
1.132-5T................................................... 1545-0771
1545-1098
1.141-1.................................................... 1545-1451
1.141-12................................................... 1545-1451
1.142-2.................................................... 1545-1451
1.148-0.................................................... 1545-1098
1.148-1.................................................... 1545-1098
1.148-2.................................................... 1545-1098
1545-1347
1.148-3.................................................... 1545-1098
1545-1347
1.148-4.................................................... 1545-1098
1545-1347
1.148-5.................................................... 1545-1098
1545-1490
1.148-6.................................................... 1545-1098
1545-1451
1.148-7.................................................... 1545-1098
1.148-7.................................................... 1545-1347
1.148-8.................................................... 1545-1098
1.148-11................................................... 1545-1098
1.148-11................................................... 1545-1347
1.149(e)-1................................................. 1545-0720
1.150-1.................................................... 1545-1347
1.151-1.................................................... 1545-0074
1.152-3.................................................... 1545-0071
1.152-4.................................................... 1545-0074
1.152-4T................................................... 1545-0074
1.162-1.................................................... 1545-0139
1.162-2.................................................... 1545-0139
1.162-3.................................................... 1545-0139
1.162-4.................................................... 1545-0139
1.162-5.................................................... 1545-0139
1.162-6.................................................... 1545-0139
1.162-7.................................................... 1545-0139
1.162-8.................................................... 1545-0139
1.162-9.................................................... 1545-0139
1.162-10................................................... 1545-0139
1.162-11................................................... 1545-0139
1.162-12................................................... 1545-0139
1.162-13................................................... 1545-0139
1.162-14................................................... 1545-0139
1.162-15................................................... 1545-0139
1.162-16................................................... 1545-0139
1.162-17................................................... 1545-0139
1.162-18................................................... 1545-0139
1.162-19................................................... 1545-0139
1.162-20................................................... 1545-0139
1.162-27................................................... 1545-1466
1.163-5.................................................... 1545-0786
1545-1132
1.163-8T................................................... 1545-0995
1.163-10T.................................................. 1545-0074
1.163-13................................................... 1545-1491
1.163(d)-1................................................. 1545-1421
1.165-1.................................................... 1545-0177
1.165-2.................................................... 1545-0177
1.165-3.................................................... 1545-0177
1.165-4.................................................... 1545-0177
1.165-5.................................................... 1545-0177
1.165-6.................................................... 1545-0177
1.165-7.................................................... 1545-0177
1.165-8.................................................... 1545-0177
1.165-9.................................................... 1545-0177
1.165-10................................................... 1545-0177
1.165-11................................................... 1545-0074
1545-0177
1545-0786
1.165-12................................................... 1545-0786
1.166-1.................................................... 1545-0123
1.166-2.................................................... 1545-1254
1.166-4.................................................... 1545-0123
1.166-10................................................... 1545-0123
1.167(a)-5T................................................ 1545-1021
1.167(a)-7................................................. 1545-0172
1.167(a)-11................................................ 1545-0152
1545-0172
1.167(a)-12................................................ 1545-0172
1.167(d)-1................................................. 1545-0172
1.167(e)-1................................................. 1545-0172
1.167(f)-11................................................ 1545-0172
1.167(l)-1................................................. 1545-0172
[[Page 187]]
1.168(d)-1................................................. 1545-1146
1.168(f)(8)-1T............................................. 1545-0923
1.168(i)-1................................................. 1545-1331
1.168-5.................................................... 1545-0172
1.169-4.................................................... 1545-0172
1.170-1.................................................... 1545-0074
1.170-2.................................................... 1545-0074
1.170-3.................................................... 1545-0123
1.170A-1................................................... 1545-0074
1.170A-2................................................... 1545-0074
1.170A-4(A)(b)............................................. 1545-0123
1.170A-8................................................... 1545-0074
1.170A-9................................................... 1545-0052
1545-0074
1.170A-11.................................................. 1545-0123
1545-0074
1.170A-12.................................................. 1545-0020
1545-0074
1.170A-13.................................................. 1545-0074
1545-0754
1545-0908
1545-1431
1.170A-13(f)............................................... 1545-1464
1.170A-14.................................................. 1545-0763
1.171-4.................................................... 1545-1491
1.171-5.................................................... 1545-1491
1.172-1.................................................... 1545-0172
1.172-13................................................... 1545-0863
1.173-1.................................................... 1545-0172
1.174-3.................................................... 1545-0152
1.174-4.................................................... 1545-0152
1.175-3.................................................... 1545-0187
1.175-6.................................................... 1545-0152
1.177-1.................................................... 1545-0172
1.179-2.................................................... 1545-1201
1.179-3.................................................... 1545-1201
1.179-5.................................................... 1545-0172
1.180-2.................................................... 1545-0074
1.182-6.................................................... 1545-0074
1.183-1.................................................... 1545-0195
1.183-2.................................................... 1545-0195
1.183-3.................................................... 1545-0195
1.183-4.................................................... 1545-0195
1.190-3.................................................... 1545-0074
1.194-2.................................................... 1545-0735
1.194-4.................................................... 1545-0735
1.195-1.................................................... 1545-1582.
1.197-1T................................................... 1545-1425
1.213-1.................................................... 1545-0074
1.215-1T................................................... 1545-0074
1.217-2.................................................... 1545-0182
1.243-3.................................................... 1545-0123
1.243-4.................................................... 1545-0123
1.243-5.................................................... 1545-0123
1.248-1.................................................... 1545-0172
1.261-1.................................................... 1545-1041
1.263(e)-1................................................. 1545-0123
1.263A-1................................................... 1545-0987
1.263A-1T.................................................. 1545-0187
1.263A-2................................................... 1545-0987
1.263A-3................................................... 1545-0987
1545-0987
1.263A-8(b)(2)(iii)........................................ 1545-1265
1.263A-9(d)(1)............................................. 1545-1265
1.263A-9(f)(1)(ii)......................................... 1545-1265
1.263A-9(f)(2)(iv)......................................... 1545-1265
1.263A-9(g)(2)(iv)(C)...................................... 1545-1265
1.263A-9(g)(3)(iv)......................................... 1545-1265
1.265-1.................................................... 1545-0074
1.265-2.................................................... 1545-0123
1.266-1.................................................... 1545-0123
1.267(f)-1................................................. 1545-0885
1.268-1.................................................... 1545-0184
1.274-1.................................................... 1545-0139
1.274-2.................................................... 1545-0139
1.274-3.................................................... 1545-0139
1.274-4.................................................... 1545-0139
1.274-5A................................................... 1545-0139
1545-0771
1.274-5T................................................... 1545-0074
1545-0172
1545-0771
1.274-6.................................................... 1545-0139
1545-0771
1.274-6T................................................... 1545-0074
1545-0771
1.274-7.................................................... 1545-0139
1.274-8.................................................... 1545-0139
1.279-6.................................................... 1545-0123
1.280C-4................................................... 1545-1155
1.280F-3T.................................................. 1545-0074
1.281-4.................................................... 1545-0123
1.302-4.................................................... 1545-0074
1.305-3.................................................... 1545-0123
1.305-5.................................................... 1545-1438
1.307-2.................................................... 1545-0074
1.312-15................................................... 1545-0172
1.316-1.................................................... 1545-0123
1.331-1.................................................... 1545-0074
1.332-4.................................................... 1545-0123
1.332-6.................................................... 1545-0123
1.337(d)-1................................................. 1545-1160
1.337(d)-2................................................. 1545-1160
1.337(d)-4................................................. 1545-1633
1.338-1.................................................... 1545-1295
1.338(b)-1................................................. 1545-1295
1.338(h)(10)-1............................................. 1545-1295
1.341-7.................................................... 1545-0123
1.351-3.................................................... 1545-0074
1.355-5.................................................... 1545-0123
1.362-2.................................................... 1545-0123
1.367(a)-1T................................................ 1545-0026
1.367(a)-2T................................................ 1545-0026
1.367(a)-3................................................. 1545-0026
1545-1478
1.367(a)-6T................................................ 1545-0026
1.367(a)-8................................................. 1545-1271
1.367(d)-1T................................................ 1545-0026
1.367(e)-1T................................................ 1545-1487
1.367(e)-2T................................................ 1545-1124
1.368-3.................................................... 1545-0123
1.371-1.................................................... 1545-0123
1.371-2.................................................... 1545-0123
1.374-3.................................................... 1545-0123
1.381(b)-1................................................. 1545-0123
1.381(c)(4)-1.............................................. 1545-0123
1545-0152
1545-0879
1.381(c)(5)-1.............................................. 1545-0123
1545-0152
1.381(c)(6)-1.............................................. 1545-0123
1545-0152
1.381(c)(8)-1.............................................. 1545-0123
1.381(c)(10)-1............................................. 1545-0123
1.381(c)(11)-1(k).......................................... 1545-0123
1.381(c)(13)-1............................................. 1545-0123
1.381(c)(17)-1............................................. 1545-0045
1.381(c)(25)-1............................................. 1545-0045
1.382-1T................................................... 1545-0123
1.382-2.................................................... 1545-0123
1.382-2T................................................... 1545-0123
1.382-3.................................................... 1545-1281
1545-1345
1.382-4.................................................... 1545-1120
[[Page 188]]
1.382-6.................................................... 1545-1381
1.382-8T................................................... 1545-1434
1.382-9.................................................... 1545-1260
1545-1120
1545-1275
1545-1324
1.382-91................................................... 1545-1260
1545-1324
1.383-1.................................................... 1545-0074
1545-1120
1.401(a)-11................................................ 1545-0710
1.401(a)-20................................................ 1545-0928
1.401(a)-31................................................ 1545-1341
1.401(a)-50................................................ 1545-0710
1.401(a)(31)-1............................................. 1545-1341
1.401(b)-1................................................. 1545-0197
1.401(f)-1................................................. 1545-0710
1.401(k)-1................................................. 1545-1039
1545-1069
1.401-1.................................................... 1545-0020
1545-0197
1545-0200
1545-0534
1545-0710
1.401-12(n)................................................ 1545-0806
1.401-14................................................... 1545-0710
1.402(c)-2................................................. 1545-1341
1.402(f)-1................................................. 1545-1341
1.403(b)-1................................................. 1545-0710
1.403(b)-2................................................. 1545-1341
1.404(a)-4................................................. 1545-0710
1.404(a)-12................................................ 1545-0710
1.404A-2................................................... 1545-0123
1.404A-6................................................... 1545-0123
1.408-2.................................................... 1545-0390
1.408-5.................................................... 1545-0747
1.408-6.................................................... 1545-0203
1545-0390
1.408-7.................................................... 1545-0119
1.408A-2................................................... 1545-1616
1.408A-4................................................... 1545-1616
1.408A-5................................................... 1545-1616
1.408A-7................................................... 1545-1616
1.410(a)-2................................................. 1545-0710
1.410(d)-1................................................. 1545-0710
1.411(a)-11................................................ 1545-1471
1.411(d)-4................................................. 1545-1545
1.411(d)-6................................................. 1545-1477
1.412(b)-5................................................. 1545-0710
1.412(c)(1)-2.............................................. 1545-0710
1.412(c)(2)-1.............................................. 1545-0710
1.412(c)(3)-2.............................................. 1545-0710
1.414(c)-5................................................. 1545-0797
1.414(r)-1................................................. 1545-1221
1.415-2.................................................... 1545-0710
1.415-6.................................................... 1545-0710
1.417(e)-1................................................. 1545-1471
1.417(e)-1T................................................ 1545-1471
1.441-3T................................................... 1545-0134
1.442-1.................................................... 1545-0074
1545-0123
1545-0134
1545-0152
1.442-2T................................................... 1545-0134
1.442-3T................................................... 1545-0134
1.443-1.................................................... 1545-0123
1.444-3T................................................... 1545-1036
1.446-1.................................................... 1545-0074
1545-0152
1.446-4(d)................................................. 1545-1412
1.448-1(g)................................................. 1545-0152
1.448-1(h)................................................. 1545-0152
1.448-1(i)................................................. 1545-0152
1.448-2T................................................... 1545-0152
1.451-1.................................................... 1545-0091
1.451-3.................................................... 1545-0152
1545-0736
1.451-4.................................................... 1545-0123
1.451-5.................................................... 1545-0074
1.451-6.................................................... 1545-0074
1.451-7.................................................... 1545-0074
1.453-1.................................................... 1545-0152
1.453-2.................................................... 1545-0152
1.453-8.................................................... 1545-0152
1545-0228
1.453-10................................................... 1545-0152
1.453A-1................................................... 1545-0152
1545-1134
1.453A-2................................................... 1545-0152
1545-1134
1.453A-3................................................... 1545-0963
1.454-1.................................................... 1545-0074
1.455-2.................................................... 1545-0152
1.455-6.................................................... 1545-0123
1.456-2.................................................... 1545-0123
1.456-6.................................................... 1545-0123
1.456-7.................................................... 1545-0123
1.458-1.................................................... 1545-0879
1.458-2.................................................... 1545-0152
1.460-6.................................................... 1545-1031
1545-1572
1.461-1.................................................... 1545-0074
1.461-2.................................................... 1545-0096
1.461-4.................................................... 1545-0917
1.461-5.................................................... 1545-0917
1.463-1T................................................... 1545-0916
1.465-1T................................................... 1545-0712
1.466-1T................................................... 1545-0152
1.466-4.................................................... 1545-0152
1.468A-3................................................... 1545-1269
1545-1378
1545-1511
1.468A-4................................................... 1545-0954
1.468A-7................................................... 1545-0954
1.468A-8................................................... 1545-1269
1.468B-1(j)................................................ 1545-1299
1.468B-2(k)................................................ 1545-1299
1.468B-2(l)................................................ 1545-1299
1.468B-3(b)................................................ 1545-1299
1.468B-3(e)................................................ 1545-1299
1.468B-5(b)................................................ 1545-1299
1.469-1.................................................... 1545-1008
1.469-2T................................................... 1545-0712
1545-1091
1.469-4T................................................... 1545-0985
1545-1037
1.471-2.................................................... 1545-0123
1.471-5.................................................... 1545-0123
1.471-6.................................................... 1545-0123
1.471-8.................................................... 1545-0123
1.471-11................................................... 1545-0123
1545-0152
1.472-1.................................................... 1545-0042
1545-0152
1.472-2.................................................... 1545-0152
1.472-3.................................................... 1545-0042
1.472-5.................................................... 1545-0152
1.472-8.................................................... 1545-0028
1545-0042
1.475(b)-4................................................. 1545-1496
1.481-4.................................................... 1545-0152
1.481-5.................................................... 1545-0152
1.482-1.................................................... 1545-1364
1.482-4.................................................... 1545-1364
[[Page 189]]
1.482-7.................................................... 1545-1364
1.501(a)-1................................................. 1545-0056
1545-0057
1.501(c)(3)-1.............................................. 1545-0056
1.501(c)(9)-5.............................................. 1545-0047
1.501(c)(17)-3............................................. 1545-0047
1.501(e)-1................................................. 1545-0814
1.503(c)-1................................................. 1545-0047
1545-0052
1.505(c)-1T................................................ 1545-0916
1.507-1.................................................... 1545-0052
1.507-2.................................................... 1545-0052
1.508-1.................................................... 1545-0052
1545-0056
1.509(a)-3................................................. 1545-0047
1.509(a)-5................................................. 1545-0047
1.509(c)-1................................................. 1545-0052
1.512(a)-1................................................. 1545-0687
1.512(a)-4................................................. 1545-0047
1545-0687
1.521-1.................................................... 1545-0051
1545-0058
1.527-2.................................................... 1545-0129
1.527-5.................................................... 1545-0129
1.527-6.................................................... 1545-0129
1.527-9.................................................... 1545-0129
1.528-8.................................................... 1545-0127
1.533-2.................................................... 1545-0123
1.534-2.................................................... 1545-0123
1.542-3.................................................... 1545-0123
1.545-2.................................................... 1545-0123
1.545-3.................................................... 1545-0123
1.547-2.................................................... 1545-0045
1545-0123
1.547-3.................................................... 1545-0123
1.551-4.................................................... 1545-0074
1.552-3.................................................... 1545-0099
1.552-4.................................................... 1545-0099
1.552-5.................................................... 1545-0099
1.556-2.................................................... 1545-0704
1.561-1.................................................... 1545-0044
1.561-2.................................................... 1545-0123
1.562-3.................................................... 1545-0123
1.563-2.................................................... 1545-0123
1.564-1.................................................... 1545-0123
1.565-1.................................................... 1545-0043
1545-0123
1.565-2.................................................... 1545-0043
1.565-3.................................................... 1545-0043
1.565-5.................................................... 1545-0043
1.565-6.................................................... 1545-0043
1.585-1.................................................... 1545-0123
1.585-3.................................................... 1545-0123
1.585-8.................................................... 1545-1290
1.586-2.................................................... 1545-0123
1.593-1.................................................... 1545-0123
1.593-6.................................................... 1545-0123
1.593-6A................................................... 1545-0123
1.593-7.................................................... 1545-0123
1.595-1.................................................... 1545-0123
1.597-2.................................................... 1545-1300
1.597-4.................................................... 1545-1300
1.597-6.................................................... 1545-1300
1.597-7.................................................... 1545-1300
1.611-2.................................................... 1545-0099
1.611-3.................................................... 1545-0007
1545-0099
1.612-4.................................................... 1545-0074
1.612-5.................................................... 1545-0099
1.613-3.................................................... 1545-0099
1.613-4.................................................... 1545-0099
1.613-6.................................................... 1545-0099
1.613-7.................................................... 1545-0099
1.613A-3................................................... 1545-0919
1.613A-3(e)................................................ 1545-1251
1.613A-3(l)................................................ 1545-0919
1.613A-5................................................... 1545-0099
1.613A-6................................................... 1545-0099
1.614-2.................................................... 1545-0099
1.614-3.................................................... 1545-0099
1.614-5.................................................... 1545-0099
1.614-6.................................................... 1545-0099
1.614-8.................................................... 1545-0099
1.617-1.................................................... 1545-0099
1.617-3.................................................... 1545-0099
1.617-4.................................................... 1545-0099
1.631-1.................................................... 1545-0007
1.631-2.................................................... 1545-0007
1.641(b)-2................................................. 1545-0092
1.642(c)-1................................................. 1545-0092
1.642(c)-2................................................. 1545-0092
1.642(c)-5................................................. 1545-0074
1.642(c)-6................................................. 1545-0020
1545-0074
1545-0092
1.642(g)-1................................................. 1545-0092
1.642(i)-1................................................. 1545-0092
1.663(b)-2................................................. 1545-0092
1.664-1.................................................... 1545-0196
1.664-1(a)(7).............................................. 1545-1536
1.664-2.................................................... 1545-0196
1.664-3.................................................... 1545-0196
1.664-4.................................................... 1545-0020
1545-0196
1.665(a)-0A through
1.665(g)-2A................................................ 1545-0192
1.666(d)-1A................................................ 1545-0092
1.671-4.................................................... 1545-1442
1.701-1.................................................... 1545-0099
1.702-1.................................................... 1545-0074
1.703-1.................................................... 1545-0099
1.704-2.................................................... 1545-1090
1.706-1.................................................... 1545-0099
1545-0074
1545-0134
1.706-1T................................................... 1545-0099
1.707-3(c)(2).............................................. 1545-1243
1.707-5(a)(7)(ii).......................................... 1545-1243
1.707-6(c)................................................. 1545-1243
1.707-8.................................................... 1545-1243
1.708-1.................................................... 1545-0099
1.732-1.................................................... 1545-0099
1.736-1.................................................... 1545-0074
1.743-1.................................................... 1545-0074
1.751-1.................................................... 1545-0074
1545-0099
1545-0941
1.752-5.................................................... 1545-1090
1.754-1.................................................... 1545-0099
1.755-1.................................................... 1545-0099
1.755-2T................................................... 1545-1021
1.761-2.................................................... 1545-1338
1.801-1.................................................... 1545-0123
1545-0128
1.801-3.................................................... 1545-0123
1.801-5.................................................... 1545-0128
1.801-8.................................................... 1545-0128
1.804-4.................................................... 1545-0128
1.811-2.................................................... 1545-0128
1.812-2.................................................... 1545-0128
1.815-6.................................................... 1545-0128
1.818-4.................................................... 1545-0128
1.818-5.................................................... 1545-0128
1.818-8.................................................... 1545-0128
[[Page 190]]
1.819-2.................................................... 1545-0128
1.821-1.................................................... 1545-1027
1.821-3.................................................... 1545-1027
1.821-4.................................................... 1545-1027
1.822-5.................................................... 1545-1027
1.822-6.................................................... 1545-1027
1.822-8.................................................... 1545-1027
1.822-9.................................................... 1545-1027
1.823-2.................................................... 1545-1027
1.823-5.................................................... 1545-1027
1.823-6.................................................... 1545-1027
1.825-1.................................................... 1545-1027
1.826-1.................................................... 1545-1027
1.826-2.................................................... 1545-1027
1.826-3.................................................... 1545-1027
1.826-4.................................................... 1545-1027
1.826-6.................................................... 1545-1027
1.831-3.................................................... 1545-0123
1.831-4.................................................... 1545-0123
1.832-4.................................................... 1545-1227
1.832-5.................................................... 1545-0123
1.848-2(g)(8).............................................. 1545-1287
1.848-2(h)(3).............................................. 1545-1287
1.848-2(i)(4).............................................. 1545-1287
1.851-2.................................................... 1545-1010
1.851-4.................................................... 1545-0123
1.852-1.................................................... 1545-0123
1.852-4.................................................... 1545-0123
1545-0145
1.852-6.................................................... 1545-0123
1545-0144
1.852-7.................................................... 1545-0074
1.852-9.................................................... 1545-0074
1545-0123
1545-0144
1545-0145
1.852-11................................................... 1545-1094
1.853-3.................................................... 1545-0123
1.853-4.................................................... 1545-0123
1.854-2.................................................... 1545-0123
1.855-1.................................................... 1545-0123
1.856-2.................................................... 1545-0123
1545-1004
1.856-6.................................................... 1545-0123
1.856-7.................................................... 1545-0123
1.856-8.................................................... 1545-0123
1.857-8.................................................... 1545-0123
1.857-9.................................................... 1545-0074
1.858-1.................................................... 1545-0123
1.860-2.................................................... 1545-0045
1.860-4.................................................... 1545-0045
1545-1054
1545-1057
1.860E-2(a)(5)............................................. 1545-1276
1.860E-2(a)(7)............................................. 1545-1276
1.860E-2(b)(2)............................................. 1545-1276
1.861-2.................................................... 1545-0089
1.861-3.................................................... 1545-0089
1.861-8.................................................... 1545-0126
1.861-8(e)(6) and (g)...................................... 1545-1224
1.861-9T................................................... 1545-0121
1545-1072
1.861-18................................................... 1545-1594
1.863-1.................................................... 1545-1476
1.863-3.................................................... 1545-1476
1545-1556
1.863-3A................................................... 1545-0126
1.863-4.................................................... 1545-0126
1.863-7.................................................... 1545-0132
1.864-4.................................................... 1545-0126
1.871-1.................................................... 1545-0096
1.871-6.................................................... 1545-0795
1.871-7.................................................... 1545-0089
1.871-10................................................... 1545-0089
1545-0165
1.874-1.................................................... 1545-0089
1.881-4.................................................... 1545-1440
1.882-4.................................................... 1545-0126
1.884-0.................................................... 1545-1070
1.884-1.................................................... 1545-1070
1.884-2.................................................... 1545-1070
1.884-2T................................................... 1545-0126
1545-1070
1.884-4.................................................... 1545-1070
1.884-5.................................................... 1545-1070
1.892-1T................................................... 1545-1053
1.892-2T................................................... 1545-1053
1.892-3T................................................... 1545-1053
1.892-4T................................................... 1545-1053
1.892-5T................................................... 1545-1053
1.892-6T................................................... 1545-1053
1.892-7T................................................... 1545-1053
1.897-2.................................................... 1545-0123
1545-0902
1.897-3.................................................... 1545-0123
1.897-5T................................................... 1545-0902
1.897-6T................................................... 1545-0902
1.901-2.................................................... 1545-0746
1.901-2A................................................... 1545-0746
1.901-3.................................................... 1545-0122
1.902-1.................................................... 1545-0122
1545-1458
1.904-1.................................................... 1545-0121
1545-0122
1.904-2.................................................... 1545-0121
1545-0122
1.904-3.................................................... 1545-0121
1.904-4.................................................... 1545-0121
1.904-5.................................................... 1545-0121
1.904(f)-1................................................. 1545-0121
1545-0122
1.904(f)-2................................................. 1545-0121
1.904(f)-3................................................. 1545-0121
1.904(f)-4................................................. 1545-0121
1.904(f)-5................................................. 1545-0121
1.904(f)-6................................................. 1545-0121
1.904(f)-7................................................. 1545-1127
1.905-2.................................................... 1545-0122
1.905-3T................................................... 1545-1056
1.905-4T................................................... 1545-1056
1.905-5T................................................... 1545-1056
1.911-1.................................................... 1545-0067
1545-0070
1.911-2.................................................... 1545-0067
1545-0070
1.911-3.................................................... 1545-0067
1545-0070
1.911-4.................................................... 1545-0067
1545-0070
1.911-5.................................................... 1545-0067
1545-0070
1.911-6.................................................... 1545-0067
1545-0070
1.911-7.................................................... 1545-0067
1545-0070
1.913-13................................................... 1545-0067
1.921-1T................................................... 1545-0190
1545-0884
1545-0935
1545-0939
1.921-2.................................................... 1545-0884
1.921-3T................................................... 1545-0935
1.923-1T................................................... 1545-0935
1.924(a)-1T................................................ 1545-0935
[[Page 191]]
1.925(a)-1T................................................ 1545-0935
1.925(b)-1T................................................ 1545-0935
1.926(a)-1T................................................ 1545-0935
1.927(a)-1T................................................ 1545-0935
1.927(b)-1T................................................ 1545-0935
1.927(d)-1................................................. 1545-0884
1.927(d)-2T................................................ 1545-0935
1.927(e)-1T................................................ 1545-0935
1.927(e)-2T................................................ 1545-0935
1.927(f)-1................................................. 1545-0884
1.931-1.................................................... 1545-0074
1545-0123
1.934-1.................................................... 1545-0782
1.935-1.................................................... 1545-0074
1545-0087
1545-0803
1.936-1.................................................... 1545-0215
1545-0217
1.936-4.................................................... 1545-0215
1.936-5.................................................... 1545-0704
1.936-6.................................................... 1545-0215
1.936-7.................................................... 1545-0215
1.936-10(c)................................................ 1545-1138
1.952-2.................................................... 1545-0126
1.953-2.................................................... 1545-0126
1.954-1.................................................... 1545-1068
1.954-2.................................................... 1545-1068
1.955-2.................................................... 1545-0123
1.955-3.................................................... 1545-0123
1.955A-2................................................... 1545-0755
1.955A-3................................................... 1545-0755
1.956-1.................................................... 1545-0704
1.956-2.................................................... 1545-0704
1.959-1.................................................... 1545-0704
1.959-2.................................................... 1545-0704
1.960-1.................................................... 1545-0122
1.962-2.................................................... 1545-0704
1.962-3.................................................... 1545-0704
1.962-4.................................................... 1545-0704
1.964-1.................................................... 1545-0126
1545-0704
1545-1072
1.964-3.................................................... 1545-0126
1.970-2.................................................... 1545-0126
1.985-2.................................................... 1545-1051
1545-1131
1.985-3.................................................... 1545-1051
1.988-0.................................................... 1545-1131
1.988-1.................................................... 1545-1131
1.988-2.................................................... 1545-1131
1.988-3.................................................... 1545-1131
1.988-4.................................................... 1545-1131
1.988-5.................................................... 1545-1131
1.992-1.................................................... 1545-0190
1545-0938
1.992-2.................................................... 1545-0190
1545-0884
1545-0938
1.992-3.................................................... 1545-0190
1545-0938
1.992-4.................................................... 1545-0190
1545-0938
1.993-3.................................................... 1545-0938
1.993-4.................................................... 1545-0938
1.994-1.................................................... 1545-0938
1.995-5.................................................... 1545-0938
1.1012-1................................................... 1545-0074
1545-1139
1.1014-4................................................... 1545-0184
1.1015-1................................................... 1545-0020
1.1017-1................................................... 1545-1539
1.1031(d)-1T............................................... 1545-1021
1.1033(a)-2................................................ 1545-0184
1.1033(g)-1................................................ 1545-0184
1.1034-1................................................... 1545-0072
1.1039-1................................................... 1545-0184
1.1041-1T.................................................. 1545-0074
1.1042-1T.................................................. 1545-0916
1.1044(a)-1................................................ 1545-1421
1.1060-1T.................................................. 1545-1021
1.1071-1................................................... 1545-0184
1.1071-4................................................... 1545-0184
1.1081-4................................................... 1545-0028
1545-0046
1545-0123
1.1081-11.................................................. 1545-0074
1545-0123
1.1082-1................................................... 1545-0046
1.1082-2................................................... 1545-0046
1.1082-3................................................... 1545-0046
1545-0184
1.1082-4................................................... 1545-0046
1.1082-5................................................... 1545-0046
1.1082-6................................................... 1545-0046
1.1083-1................................................... 1545-0123
1.1092(b)-1T............................................... 1545-0644
1.1092(b)-2T............................................... 1545-0644
1.1092(b)-3T............................................... 1545-0644
1.1092(b)-4T............................................... 1545-0644
1.1092(b)-5T............................................... 1545-0644
1.1211-1................................................... 1545-0074
1.1212-1................................................... 1545-0074
1.1221-2................................................... 1545-1403
1.1221-2(d)(2)(iv)......................................... 1545-1480
1.1221-2(e)(5)............................................. 1545-1480
1.1221-2(g)(5)(ii)......................................... 1545-1480
1.1221-2(g)(6)(ii)......................................... 1545-1480
1.1221-2(g)(6)(iii)........................................ 1545-1480
1.1221-2T(c)............................................... 1545-1403
1.1231-1................................................... 1545-0177
1545-0184
1.1231-2................................................... 1545-0177
1545-0184
1.1231-2................................................... 1545-0074
1.1232-3................................................... 1545-0074
1.1237-1................................................... 1545-0184
1.1239-1................................................... 1545-0091
1.1242-1................................................... 1545-0184
1.1243-1................................................... 1545-0123
1.1244(e)-1................................................ 1545-0123
1545-1447
1.1245-1................................................... 1545-0184
1.1245-2................................................... 1545-0184
1.1245-3................................................... 1545-0184
1.1245-4................................................... 1545-0184
1.1245-5................................................... 1545-0184
1.1245-6................................................... 1545-0184
1.1247-1................................................... 1545-0122
1.1247-2................................................... 1545-0122
1.1247-4................................................... 1545-0122
1.1247-5................................................... 1545-0122
1.1248-7................................................... 1545-0074
1.1250-1................................................... 1545-0184
1.1250-2................................................... 1545-0184
1.1250-3................................................... 1545-0184
1.1250-4................................................... 1545-0184
1.1250-5................................................... 1545-0184
1.1251-1................................................... 1545-0184
1.1251-2................................................... 1545-0074
1545-0184
1.1251-3................................................... 1545-0184
1.1251-4................................................... 1545-0184
1.1252-1................................................... 1545-0184
1.1252-2................................................... 1545-0184
[[Page 192]]
1.1254-1(c)(3)............................................. 1545-1352
1.1254-4................................................... 1545-1493
1.1254-5(d)(2)............................................. 1545-1352
1.1258-1................................................... 1545-1452
1.1272-3................................................... 1545-1353
1.1273-2(h)(2)............................................. 1545-1353
1.1274-3(d)................................................ 1545-1353
1.1274-5(b)................................................ 1545-1353
1.1274A-1(c)............................................... 1545-1353
1.1275-2................................................... 1545-1450
1.1275-3................................................... 1545-0887
1545-1353
1545-1450
1.1275-4................................................... 1545-1450
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1.1287-1................................................... 1545-0786
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1.1294-1T.................................................. 1545-1002
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1.1295-1T.................................................. 1545-1028
1545-1555
1.1295-3T.................................................. 1545-1555
1.1297-3T.................................................. 1545-1028
1.1311(a)-1................................................ 1545-0074
1.1361-1................................................... 1545-0731
1.1362-1................................................... 1545-1308
1.1362-2................................................... 1545-1308
1.1362-3................................................... 1545-1308
1.1362-4................................................... 1545-1308
1.1362-5................................................... 1545-1308
1.1362-6................................................... 1545-1308
1.1362-7................................................... 1545-1308
1.1367-1(f)................................................ 1545-1139
1.1368-1(f)(2)............................................. 1545-1139
1.1368-1(f)(3)............................................. 1545-1139
1.1368-1(f)(4)............................................. 1545-1139
1.1368-1(g)(2)............................................. 1545-1139
1.1374-1A.................................................. 1545-0130
1.1377-1................................................... 1545-1462
1.1383-1................................................... 1545-0074
1.1385-1................................................... 1545-0074
1545-0098
1.1388-1................................................... 1545-0118
1545-0123
1.1398-1................................................... 1545-1375
1.1398-2................................................... 1545-1375
1.1402(a)-2................................................ 1545-0074
1.1402(a)-5................................................ 1545-0074
1.1402(a)-11............................................... 1545-0074
1.1402(a)-15............................................... 1545-0074
1.1402(a)-16............................................... 1545-0074
1.1402(b)-1................................................ 1545-0171
1.1402(c)-2................................................ 1545-0074
1.1402(e)(1)-1............................................. 1545-0074
1.1402(e)(2)-1............................................. 1545-0074
1.1402(e)-1A............................................... 1545-0168
1.1402(e)-2A............................................... 1545-0168
1.1402(e)-3A............................................... 1545-0168
1.1402(e)-4A............................................... 1545-0168
1.1402(e)-5A............................................... 1545-0168
1.1402(f)-1................................................ 1545-0074
1.1402(h)-1................................................ 1545-0064
1.1441-1................................................... 1545-1484
1.1441-2................................................... 1545-0795
1.1441-3................................................... 1545-0165
1545-0795
1.1441-4................................................... 1545-1484
1.1441-5................................................... 1545-0096
1545-0795
1.1441-6................................................... 1545-0055
1545-0795
1.1441-7................................................... 1545-0795
1.1441-8................................................... 1545-1053
1545-1484
1.1441-8T.................................................. 1545-1053
1.1441-9................................................... 1545-1484
1.1443-1................................................... 1545-0096
1.1445-1................................................... 1545-0902
1.1445-2................................................... 1545-0902
1545-1060
1.1445-3................................................... 1545-0902
1545-1060
1.1445-4................................................... 1545-0902
1.1445-5................................................... 1545-0902
1.1445-6................................................... 1545-0902
1545-1060
1.1445-7................................................... 1545-0902
1.1445-8................................................... 1545-0096
1.1445-9T.................................................. 1545-0902
1.1445-10T................................................. 1545-0902
1.1451-1................................................... 1545-0054
1.1451-2................................................... 1545-0054
1.1461-1................................................... 1545-0054
1545-0055
1545-0795
1.1461-2................................................... 1545-0054
1545-0055
1545-0096
1545-0795
1.1461-3................................................... 1545-0054
1545-0055
1545-0096
1545-0795
1.1461-4................................................... 1545-0054
1545-0055
1545-0096
1.1462-1................................................... 1545-0795
1.1492-1................................................... 1545-0026
1.1494-1................................................... 1545-0026
1.1502-5................................................... 1545-0257
1.1502-9................................................... 1545-0121
1.1502-13.................................................. 1545-0123
1545-0885
1545-1161
1545-1433
1.1502-16.................................................. 1545-0123
1.1502-18.................................................. 1545-0123
1.1502-19.................................................. 1545-0123
1.1502-20.................................................. 1545-1160
1.1502-21T................................................. 1545-1237
1.1502-31.................................................. 1545-1344
1.1502-32.................................................. 1545-1344
1.1502-33.................................................. 1545-1344
1.1502-47.................................................. 1545-0123
1.1502-75.................................................. 1545-0025
1545-0123
1545-0133
1545-0152
1.1502-76.................................................. 1545-1344
1.1502-77.................................................. 1545-0123
1.1502-77T................................................. 1545-1046
1.1502-78.................................................. 1545-0582
1.1502-95T................................................. 1545-1218
1.1503-2A.................................................. 1545-1083
1.1552-1................................................... 1545-0123
1.1561-3................................................... 1545-0123
1.1563-1................................................... 1545-0123
1545-0797
1.1563-3................................................... 1545-0123
1.6001-1................................................... 1545-0058
1545-0074
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1545-0123
1545-0865
1.6011-1................................................... 1545-0055
1545-0074
1545-0085
1545-0089
1545-0090
1545-0091
1545-0096
1545-0121
1545-0458
1545-0666
1545-0675
1545-0908
1.6011-2................................................... 1545-0055
1545-0938
1.6011-3................................................... 1545-0238
1545-0239
1.6012-1................................................... 1545-0067
1545-0085
1545-0089
1545-0675
1545-0074
1.6012-2................................................... 1545-0047
1545-0051
1545-0067
1545-0123
1545-0126
1545-0130
1545-0128
1545-0175
1545-0687
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1.6012-3................................................... 1545-0047
1545-0067
1545-0092
1545-0196
1545-0687
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1.6012-5................................................... 1545-0067
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1545-0991
1545-0936
1545-1023
1545-1033
1545-1079
1.6012-6................................................... 1545-0067
1.6012-7T.................................................. 1545-1348
1545-0089
1545-0129
1.6013-1................................................... 1545-0074
1.6013-2................................................... 1545-0091
1.6013-6................................................... 1545-0074
1.6013-7................................................... 1545-0074
1.6015(a)-1................................................ 1545-0087
1.6015(b)-1................................................ 1545-0087
1.6015(d)-1................................................ 1545-0087
1.6015(e)-1................................................ 1545-0087
1.6015(f)-1................................................ 1545-0087
1.6015(g)-1................................................ 1545-0087
1.6015(h)-1................................................ 1545-0087
1.6015(i)-1................................................ 1545-0087
1.6017-1................................................... 1545-0074
1545-0087
1545-0090
1.6031(b)-1T............................................... 1545-0099
1.6031(c)-1T............................................... 1545-0099
1.6031-1................................................... 1545-0099
1545-0970
1.6032-1................................................... 1545-0099
1.6033-2................................................... 1545-0047
1545-0049
1545-0052
1545-0092
1545-0687
1545-1150
1.6033-3................................................... 1545-0052
1.6034-1................................................... 1545-0092
1545-0094
1.6035-1................................................... 1545-0704
1.6035-2................................................... 1545-0704
1.6035-3................................................... 1545-0704
1.6037-1................................................... 1545-0130
1545-1023
1.6038-2................................................... 1545-0704
1545-0805
1545-1317
1.6038A-2.................................................. 1545-1191
1.6038A-3.................................................. 1545-1191
1545-1440
1.6038B-1.................................................. 1545-1615
1.6038B-1T................................................. 1545-0026
1.6038B-2.................................................. 1545-1615
1.6039-2................................................... 1545-0820
1.6041-1................................................... 1545-0008
1545-0108
1545-0112
1545-0115
1545-0120
1545-0295
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1545-0441
1545-0957
1.6041-2................................................... 1545-0008
1545-0119
1545-0350
1545-0441
1.6041-3................................................... 1545-1148
1.6041-4................................................... 1545-0115
1545-0295
1545-0367
1545-0387
1545-0957
1.6041-5................................................... 1545-0295
1545-0367
1545-0387
1545-0957
1.6041-6................................................... 1545-0008
1545-0115
1.6041-7................................................... 1545-0112
1545-0295
1545-0350
1545-0367
1545-0387
1545-0441
1545-0957
1.6042-1................................................... 1545-0110
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1545-0295
1545-0367
1545-0387
1545-0957
1.6042-3................................................... 1545-0295
1545-0367
1545-0387
1545-0957
1.6042-4................................................... 1545-0110
1.6043-1................................................... 1545-0041
1.6043-2................................................... 1545-0041
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1545-0295
1545-0387
1.6043-3................................................... 1545-0047
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1.6044-5................................................... 1545-0118
1.6045-1................................................... 1545-0715
1.6045-2................................................... 1545-0115
1.6045-4................................................... 1545-1085
1.6046-1................................................... 1545-0704
1545-0794
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1.6046-2................................................... 1545-0704
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1.6047-1................................................... 1545-0119
1545-0295
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1.6049-1................................................... 1545-0112
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1.6049-7................................................... 1545-1018
1.6049-7T.................................................. 1545-0112
1545-0117
1545-0118
1.6050A-1.................................................. 1545-0115
1.6050B-1.................................................. 1545-0120
1.6050D-1.................................................. 1545-0120
1545-0232
1.6050E-1.................................................. 1545-0120
1.6050H-1.................................................. 1545-0901
1545-1380
1.6050H-2.................................................. 1545-0901
1545-1339
1545-1380
1.6050H-1T................................................. 1545-0901
1.6050I-2.................................................. 1545-1449
1.6050J-1T................................................. 1545-0877
1.6050K-1.................................................. 1545-0941
1.6050P-1.................................................. 1545-1419
1.6050P-1T................................................. 1545-1419
1.6052-1................................................... 1545-0008
1.6052-2................................................... 1545-0008
1.6060-1................................................... 1545-0074
1.6061-1................................................... 1545-0123
1.6061-2T.................................................. 1545-1348
1.6062-1................................................... 1545-0123
1.6063-1................................................... 1545-0123
1.6065-1................................................... 1545-0123
1.6071-1................................................... 1545-0123
1545-0810
1.6072-1................................................... 1545-0074
1.6072-2................................................... 1545-0123
1545-0807
1.6073-1................................................... 1545-0087
1.6073-2................................................... 1545-0087
1.6073-3................................................... 1545-0087
1.6073-4................................................... 1545-0087
1.6074-1................................................... 1545-0123
1.6074-2................................................... 1545-0123
1.6081-1................................................... 1545-0066
1545-0148
1545-0233
1545-1057
1545-1081
1.6081-2................................................... 1545-0148
1545-1054
1545-1036
1.6081-3................................................... 1545-0233
1.6081-4................................................... 1545-0188
1545-1479
1.6081-6................................................... 1545-0148
1545-1054
1.6081-7................................................... 1545-0148
1545-1054
1.6091-3................................................... 1545-0089
1.6107-1................................................... 1545-0074
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1.6115-1................................................... 1545-1464
1.6151-1................................................... 1545-0074
1.6152-1................................................... 1545-0135
1545-0233
1.6153-1................................................... 1545-0087
1.6153-4................................................... 1545-0087
1.6154-2................................................... 1545-0257
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1.6161-1................................................... 1545-0087
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1.6414-1................................................... 1545-0096
1.6425-1................................................... 1545-0170
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1.6654-1................................................... 1545-0087
1545-0140
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1.6654-4................................................... 1545-0087
1.6655-1................................................... 1545-0142
1.6655-2................................................... 1545-0142
1.6655-3................................................... 1545-0142
1.6655-7................................................... 1545-0123
1.6655(e)-1................................................ 1545-1421
1.6661-3................................................... 1545-0988
1545-1031
1.6661-4................................................... 1545-0739
1.6662-3(c)................................................ 1545-0889
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1.6662-4(e) and (f)........................................ 1545-0889
1.6662-6................................................... 1545-1426
1.6694-1................................................... 1545-0074
1.6694-2................................................... 1545-0074
1.6694-2(c)................................................ 1545-1231
1.6694-3(e)................................................ 1545-1231
1.6695-1................................................... 1545-0074
1545-1385
1.6695-2T.................................................. 1545-1570
1.6696-1................................................... 1545-0074
1545-0240
1.6851-1................................................... 1545-0086
1545-0138
1.6851-2................................................... 1545-0086
1545-0138
1.7476-1................................................... 1545-0197
1.7476-2................................................... 1545-0197
1.7519-2T.................................................. 1545-1036
1.7520-1................................................... 1545-1343
1.7520-2................................................... 1545-1343
1.7520-3................................................... 1545-1343
1.7520-4................................................... 1545-1343
1.9100-1................................................... 1545-0074
1.9101-1................................................... 1545-0008
2.1-4...................................................... 1545-0123
2.1-5...................................................... 1545-0123
2.1-6...................................................... 1545-0123
2.1-10..................................................... 1545-0123
2.1-11..................................................... 1545-0123
2.1-12..................................................... 1545-0123
2.1-13..................................................... 1545-0123
2.1-20..................................................... 1545-0123
2.1-22..................................................... 1545-0123
2.1-26..................................................... 1545-0123
3.2........................................................ 1545-0123
4.954-1.................................................... 1545-1068
4.954-2.................................................... 1545-1068
5.6411-1................................................... 1545-0098
1545-0582
1545-0042
1545-0074
1545-0129
1545-0172
1545-0619
5c.44F-1................................................... 1545-0619
5c.128-1................................................... 1545-0123
5c.168(f)(8)-1............................................. 1545-0123
5c.168(f)(8)-2............................................. 1545-0123
5c.168(f)(8)-6............................................. 1545-0123
5c.168(f)(8)-8............................................. 1545-0123
5c.305-1................................................... 1545-0110
5c.442-1................................................... 1545-0152
5f.103-1................................................... 1545-0720
5f.103-3................................................... 1545-0720
5f.6045-1.................................................. 1545-0715
6a.103A-2.................................................. 1545-0123
1545-0720
6a.103A-3.................................................. 1545-0720
7.367(b)-1................................................. 1545-0026
7.367(b)-3................................................. 1545-0026
7.367(b)-7................................................. 1545-0026
7.367(b)-9................................................. 1545-0026
7.367(b)-10................................................ 1545-0026
7.465-1.................................................... 1545-0712
7.465-2.................................................... 1545-0712
7.465-3.................................................... 1545-0712
7.465-4.................................................... 1545-0712
7.465-5.................................................... 1545-0712
7.936-1.................................................... 1545-0217
7.999-1.................................................... 1545-0216
7.6039A-1.................................................. 1545-0015
7.6041-1................................................... 1545-0115
11.410-1................................................... 1545-0710
11.412(c)-7................................................ 1545-0710
11.412(c)-11............................................... 1545-0710
12.7....................................................... 1545-0190
12.8....................................................... 1545-0191
12.9....................................................... 1545-0195
14a.422A-1................................................. 1545-0123
15A.453-1.................................................. 1545-0228
16.3-1..................................................... 1545-0159
16A.126-2.................................................. 1545-0074
16A.1255-1................................................. 1545-0184
16A.1255-2................................................. 1545-0184
18.1371-1.................................................. 1545-0130
18.1378-1.................................................. 1545-0130
18.1379-1.................................................. 1545-0130
18.1379-2.................................................. 1545-0130
20.2011-1.................................................. 1545-0015
20.2014-5.................................................. 1545-0015
1545-0260
20.2014-6.................................................. 1545-0015
20.2016-1.................................................. 1545-0015
20.2031-2.................................................. 1545-0015
20.2031-3.................................................. 1545-0015
20.2031-4.................................................. 1545-0015
20.2031-6.................................................. 1545-0015
20.2031-7.................................................. 1545-0020
20.2031-10................................................. 1545-0015
20.2032-1.................................................. 1545-0015
20.2032A-3................................................. 1545-0015
20.2032A-4................................................. 1545-0015
20.2032A-8................................................. 1545-0015
20.2039-4.................................................. 1545-0015
20.2051-1.................................................. 1545-0015
20.2053-3.................................................. 1545-0015
20.2053-9.................................................. 1545-0015
20.2053-10................................................. 1545-0015
20.2055-1.................................................. 1545-0015
20.2055-2.................................................. 1545-0015
1545-0092
20.2055-3.................................................. 1545-0015
20.2056(b)-4............................................... 1545-0015
20.2056(b)-7............................................... 1545-0015
1545-1612
20.2056A-2................................................. 1545-1443
20.2056A-3................................................. 1545-1360
20.2056A-4................................................. 1545-1360
20.2056A-10................................................ 1545-1360
20.2106-1.................................................. 1545-0015
20.2106-2.................................................. 1545-0015
20.2204-1.................................................. 1545-0015
20.2204-2.................................................. 1545-0015
20.6001-1.................................................. 1545-0015
20.6011-1.................................................. 1545-0015
20.6018-1.................................................. 1545-0015
1545-0531
20.6018-2.................................................. 1545-0015
20.6018-3.................................................. 1545-0015
20.6018-4.................................................. 1545-0015
1545-0022
20.6036-2.................................................. 1545-0015
20.6061-1.................................................. 1545-0015
20.6065-1.................................................. 1545-0015
20.6075-1.................................................. 1545-0015
20.6081-1.................................................. 1545-0015
1545-0181
20.6091-1.................................................. 1545-0015
20.6161-1.................................................. 1545-0015
1545-0181
20.6161-2.................................................. 1545-0015
1545-0181
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20.6166-1.................................................. 1545-0181
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20.6166A-1................................................. 1545-0015
20.6166A-3................................................. 1545-0015
20.6324A-1................................................. 1545-0754
20.7520-1.................................................. 1545-1343
20.7520-2.................................................. 1545-1343
20.7520-3.................................................. 1545-1343
20.7520-4.................................................. 1545-1343
22.0....................................................... 1545-0015
25.2511-2.................................................. 1545-0020
25.2512-2.................................................. 1545-0020
25.2512-3.................................................. 1545-0020
25.2512-5.................................................. 1545-0020
25.2512-9.................................................. 1545-0020
25.2513-1.................................................. 1545-0020
25.2513-2.................................................. 1545-0020
1545-0021
25.2513-3.................................................. 1545-0020
25.2518-2.................................................. 1545-0959
25.2522(a)-1............................................... 1545-0196
25.2522(c)-3............................................... 1545-0020
1545-0196
25.2523(a)-1............................................... 1545-0020
1545-0196
25.2523(f)-1............................................... 1545-0015
25.2701-2.................................................. 1545-1241
25.2701-4.................................................. 1545-1241
25.2701-5.................................................. 1545-1273
25.2702-5.................................................. 1545-1485
25.2702-6.................................................. 1545-1273
25.6001-1.................................................. 1545-0020
1545-0022
25.6011-1.................................................. 1545-0020
25.6019-1.................................................. 1545-0020
25.6019-2.................................................. 1545-0020
25.6019-3.................................................. 1545-0020
25.6019-4.................................................. 1545-0020
25.6061-1.................................................. 1545-0020
25.6065-1.................................................. 1545-0020
25.6075-1.................................................. 1545-0020
25.6081-1.................................................. 1545-0020
25.6091-1.................................................. 1545-0020
25.6091-2.................................................. 1545-0020
25.6151-1.................................................. 1545-0020
25.6161-1.................................................. 1545-0020
25.7520-1.................................................. 1545-1343
25.7520-2.................................................. 1545-1343
25.7520-3.................................................. 1545-1343
25.7520-4.................................................. 1545-1343
26.2601-1.................................................. 1545-0985
26.2632-1.................................................. 1545-0985
26.2642-1.................................................. 1545-0985
26.2642-2.................................................. 1545-0985
26.2642-3.................................................. 1545-0985
26.2642-4.................................................. 1545-0985
26.2652-2.................................................. 1545-0985
26.2662-1.................................................. 1545-0015
1545-0985
26.2662-2.................................................. 1545-0985
31.3102-3.................................................. 1545-0029
1545-0059
1545-0065
31.3121(b)(19)-1........................................... 1545-0029
31.3121(d)-1............................................... 1545-0004
31.3121(i)-1............................................... 1545-0034
31.3121(k)-4............................................... 1545-0137
31.3121(r)-1............................................... 1545-0029
31.3121(s)-1............................................... 1545-0029
31.3121(v)(2)-1............................................ 1545-1643
31.3302(a)-2............................................... 1545-0028
31.3302(a)-3............................................... 1545-0028
31.3302(b)-2............................................... 1545-0028
31.3302(e)-1............................................... 1545-0028
31.3306(c)(18)-1........................................... 1545-0029
31.3401(a)-1............................................... 1545-0029
31.3401(a)(6).............................................. 1545-1484
31.3401(a)(6)-1............................................ 1545-0029
1545-0096
1545-0795
31.3401(a)(7)-1............................................ 1545-0029
31.3401(a)(8)(A)-1 ........................................ 1545-0029
1545-0666
31.3401(a)(8)(C)-1 ........................................ 1545-0029
31.3401(a)(15)-1........................................... 1545-0182
31.3401(c)-1............................................... 1545-0004
31.3402(b)-1............................................... 1545-0010
31.3402(c)-1............................................... 1545-0010
31.3402(f)(1)-1............................................ 1545-0010
31.3402(f)(2)-1............................................ 1545-0010
1545-0410
31.3402(f)(3)-1............................................ 1545-0010
31.3402(f)(4)-1............................................ 1545-0010
31.3402(f)(4)-2............................................ 1545-0010
31.3402(f)(5)-1............................................ 1545-0010
1545-1435
31.3402(h)(1)-1............................................ 1545-0029
31.3402(h)(3)-1............................................ 1545-0010
31.3402(h)(3)-1............................................ 1545-0029
31.3402(h)(4)-1............................................ 1545-0010
31.3402(i)-(1)............................................. 1545-0010
31.3402(i)-(2)............................................. 1545-0010
31.3402(k)-1............................................... 1545-0065
31.3402(l)-(1)............................................. 1545-0010
31.3402(m)-(1)............................................. 1545-0010
31.3402(n)-(1)............................................. 1545-0010
31.3402(o)-2............................................... 1545-0415
31.3402(o)-3............................................... 1545-0008
1545-0010
1545-0415
1545-0717
31.3402(p)-1............................................... 1545-0415
1545-0717
31.3402(q)-1............................................... 1545-0238
1545-0239
31.3404-1.................................................. 1545-0029
31.3405(c)-1............................................... 1545-1341
31.3406(a)-1............................................... 1545-0112
31.3406(a)-2............................................... 1545-0112
31.3406(a)-3............................................... 1545-0112
31.3406(a)-4............................................... 1545-0112
31.3406(b)(2)-1............................................ 1545-0112
31.3406(b)(2)-2............................................ 1545-0112
31.3406(b)(2)-3............................................ 1545-0112
31.3406(b)(2)-4............................................ 1545-0112
31.3406(b)(2)-5............................................ 1545-0112
31.3406(b)(3)-1............................................ 1545-0112
31.3406(b)(3)-2............................................ 1545-0112
31.3406(b)(3)-3............................................ 1545-0112
31.3406(b)(3)-4............................................ 1545-0112
31.3406(b)(4)-1............................................ 1545-0112
31.3406(c)-1............................................... 1545-0112
31.3406(d)-1............................................... 1545-0112
31.3406(d)-2............................................... 1545-0112
31.3406(d)-3............................................... 1545-0112
31.3406(d)-4............................................... 1545-0112
31.3406(d)-5............................................... 1545-0112
31.3406(e)-1............................................... 1545-0112
31.3406(f)-1............................................... 1545-0112
31.3406(g)-1............................................... 1545-0096
1545-0112
31.3406(g)-2............................................... 1545-0112
31.3406(g)-3............................................... 1545-0112
31.3406(h)-1............................................... 1545-0112
31.3406(h)-2............................................... 1545-0112
31.3406(h)-3............................................... 1545-0112
[[Page 197]]
31.3406(i)-1............................................... 1545-0112
31.3501(a)-1T.............................................. 1545-0771
31.3503-1.................................................. 1545-0024
31.3504-1.................................................. 1545-0029
31.6001-1.................................................. 1545-0798
31.6001-2.................................................. 1545-0034
1545-0798
31.6001-3.................................................. 1545-0798
31.6001-4.................................................. 1545-0028
31.6001-5.................................................. 1545-0798
31.6001-6.................................................. 1545-0029
1459-0798
31.6011(a)-1............................................... 1545-0029
1545-0034
1545-0035
1545-0059
1545-0074
1545-0718
1545-0256
31.6011(a)-2............................................... 1545-0001
1545-0002
31.6011(a)-3............................................... 1545-0028
31.6011(a)-3A.............................................. 1545-0955
31.6011(a)-4............................................... 1545-0034
1545-0035
1545-0718
1545-1413
31.6011(a)-5............................................... 1545-0718
1545-0028
31.6011(a)-6............................................... 1545-0028
31.6011(a)-7............................................... 1545-0074
31.6011(a)-8............................................... 1545-0028
31.6011(a)-9............................................... 1545-0028
31.6011(a)-10.............................................. 1545-0112
31.6011(b)-1............................................... 1545-0003
31.6011(b)-2............................................... 1545-0029
31.6051-1.................................................. 1545-0008
1545-0182
1545-0458
31.6051-2.................................................. 1545-0008
31.6051-3.................................................. 1545-0008
31.6053-1.................................................. 1545-0029
1545-0062
1545-0064
1545-0065
31.6053-2.................................................. 1545-0008
31.6053-3.................................................. 1545-0065
1545-0714
31.6053-4.................................................. 1545-0065
31.6065(a)-1............................................... 1545-0029
31.6071(a)-1............................................... 1545-0001
1545-0028
1545-0029
31.6071(a)-1A.............................................. 1545-0955
31.6081(a)-1............................................... 1545-0008
1545-0028
31.6091-1.................................................. 1545-0028
1545-0029
31.6157-1.................................................. 1545-0955
31.6205-1.................................................. 1545-0029
31.6301(c)-1AT............................................. 1545-0035
1545-0112
1545-0257
31.6302-1.................................................. 1545-1413
31.6302-2.................................................. 1545-1413
31.6302-3.................................................. 1545-1413
31.6302-4.................................................. 1545-1413
31.6302(c)-2............................................... 1545-0001
1545-0257
31.6302(c)-2A.............................................. 1545-0955
31.6302(c)-3............................................... 1545-0257
31.6402(a)-2............................................... 1545-0256
31.6413(a)-1............................................... 1545-0029
31.6413(a)-2............................................... 1545-0029
1545-0256
31.6413(c)-1............................................... 1545-0029
1545-0171
31.6414-1.................................................. 1545-0029
32.1....................................................... 1545-0029
1545-0415
32.2....................................................... 1545-0029
35a.3406-2................................................. 1545-0112
35a.9999-3................................................. 1545-0112
35a.9999-5................................................. 1545-0029
36.3121(l)(1)-1............................................ 1545-0137
36.3121(l)(1)-2............................................ 1545-0137
36.3121(l)(3)-1............................................ 1545-0123
36.3121(1)(7)-1............................................ 1545-0123
36.3121(1)(10)-1........................................... 1545-0029
36.3121(1)(10)-3........................................... 1545-0029
36.3121(1)(10)-4........................................... 1545-0257
40.6302(c)-3(b)(2)(ii)..................................... 1545-1296
40.6302(c)-3(b)(2)(iii).................................... 1545-1296
40.6302(c)-3(e)............................................ 1545-1296
40.6302(c)-3(f)(2)(ii)..................................... 1545-1296
41.4481-1.................................................. 1545-0143
41.4481-1T................................................. 1545-0143
41.4481-2.................................................. 1545-0143
41.4482(b)-1T.............................................. 1545-0143
41.4483-3.................................................. 1545-0143
41.6001-1.................................................. 1545-0143
41.6001-2.................................................. 1545-0143
41.6001-3.................................................. 1545-0143
41.6071(a)-1............................................... 1545-0143
41.6081(a)-1............................................... 1545-0143
41.6091-1.................................................. 1545-0143
41.6109-1.................................................. 1545-0143
41.6151(a)-1............................................... 1545-0143
41.6156-1.................................................. 1545-0143
41.6161(a)(1)-1............................................ 1545-0143
44.4401-1.................................................. 1545-0235
44.4403-1.................................................. 1545-0235
44.4412-1.................................................. 1545-0236
44.4901-1.................................................. 1545-0236
44.4905-1.................................................. 1545-0236
44.4905-2.................................................. 1545-0236
44.6001-1.................................................. 1545-0235
44.6011(a)-1............................................... 1545-0235
1545-0236
44.6071-1.................................................. 1545-0235
44.6091-1.................................................. 1545-0235
44.6151-1.................................................. 1545-0235
44.6419-1.................................................. 1545-0235
44.6419-1.................................................. 1545-0235
44.6419-2.................................................. 1545-0235
46.4371-4.................................................. 1545-0023
46.4374-1.................................................. 1545-0023
46.4701-1.................................................. 1545-0023
1545-0257
48.4041-4.................................................. 1545-0023
48.4041-5.................................................. 1545-0023
48.4041-6.................................................. 1545-0023
48.4041-7.................................................. 1545-0023
48.4041-9.................................................. 1545-0023
48.4041-10................................................. 1545-0023
48.4041-11................................................. 1545-0023
48.4041-12................................................. 1545-0023
48.4041-13................................................. 1545-0023
48.4041-18................................................. 1545-0023
48.4041-19................................................. 1545-0023
48.4041-20................................................. 1545-0023
48.4041-21................................................. 1545-1270
48.4042-2.................................................. 1545-0023
48.4061(a)-1............................................... 1545-0023
[[Page 198]]
48.4061(a)-2............................................... 1545-0023
48.4061(b)-3............................................... 1545-0023
48.4064-1.................................................. 1545-0014
1545-0242
48.4071-1.................................................. 1545-0023
48.4073-1.................................................. 1545-0023
48.4073-3.................................................. 1545-0023
1545-1074
1545-1087
48.4081-2(c)(3)............................................ 1545-1270
48.4081-3(d)(2)(iii)....................................... 1545-1270
48.4081-3(e)(2)(ii)........................................ 1545-1270
48.4081-3(f)(2)(ii)........................................ 1545-1270
48.4081-4(b)(2)(ii)........................................ 1545-1270
48.4081-4(b)(3)(i)......................................... 1545-1270
48.4081-4(c)............................................... 1545-1270
48.4081-6(c)(1)(ii)........................................ 1545-1270
48.4081-7.................................................. 1545-1270
48.4081-9.................................................. 1545-1270
48.4082-2.................................................. 1545-1418
48.4082-7T................................................. 1545-1608
48.4082-8T................................................. 1545-1608
48.4091-3T................................................. 1545-1608
48.4101-1.................................................. 1545-1418
48.4101-2.................................................. 1545-1418
48.4101-2T................................................. 1545-1608
48.4101-3T................................................. 1545-1608
48.4161(a)-1............................................... 1545-0723
48.4161(a)-2............................................... 1545-0723
48.4161(a)-3............................................... 1545-0723
48.4161(b)-1............................................... 1545-0723
1545-0723
48.4216(a)-2............................................... 1545-0023
48.4216(a)-3............................................... 1545-0023
48.4216(c)-1............................................... 1545-0023
48.4221-1.................................................. 1545-0023
48.4221-2.................................................. 1545-0023
48.4221-3.................................................. 1545-0023
48.4221-4.................................................. 1545-0023
48.4221-5.................................................. 1545-0023
48.4221-6.................................................. 1545-0023
48.4221-7.................................................. 1545-0023
48.4222(a)-1............................................... 1545-0023
1545-0014
48.4223-1.................................................. 1545-0023
1545-0723
1545-0723
1545-0723
1545-0257
48.6302(c)-1............................................... 1545-0023
1545-0257
48.6412-1.................................................. 1545-0723
48.6416(a)-1............................................... 1545-0023
1545-0723
48.6416(a)-2............................................... 1545-0723
48.6416(a)-3............................................... 1545-0723
48.6416(b)(2)-3............................................ 1545-1087
48.6416(b)(1)-1............................................ 1545-0723
48.6416(b)(1)-2............................................ 1545-0723
48.6416(b)(1)-3............................................ 1545-0723
48.6416(b)(1)-4............................................ 1545-0723
48.6416(b)(2)-1............................................ 1545-0723
48.6416(b)(2)-2............................................ 1545-0723
48.6416(b)(2)-3............................................ 1545-0723
1545-1087
48.6416(b)(2)-4............................................ 1545-0723
48.6416(b)(3)-1............................................ 1545-0723
48.6416(b)(3)-2............................................ 1545-0723
48.6416(b)(3)-3............................................ 1545-0723
48.6416(b)(4)-1............................................ 1545-0723
48.6416(b)(5)-1............................................ 1545-0723
48.6416(c)-1............................................... 1545-0723
48.6416(e)-1............................................... 1545-0023
1545-0723
48.6416(f)-1............................................... 1545-0023
1545-0723
48.6416(g)-1............................................... 1545-0723
48.6416(h)-1............................................... 1545-0723
48.6420(c)-2............................................... 1545-0023
48.6420(f)-1............................................... 1545-0023
48.6420-1.................................................. 1545-0162
1545-0723
48.6420-2.................................................. 1545-0162
1545-0723
48.6420-3.................................................. 1545-0162
1545-0723
48.6420-4.................................................. 1545-0162
1545-0723
48.6420-5.................................................. 1545-0162
1545-0723
48.6420-6.................................................. 1545-0162
1545-0723
48.6420-7.................................................. 1545-0162
1545-0723
48.6421-0.................................................. 1545-0162
1545-0723
48.6421-1.................................................. 1545-0162
1545-0723
48.6421-2.................................................. 1545-0162
1545-0723
48.6421-3.................................................. 1545-0162
1545-0723
48.6421-4.................................................. 1545-0162
1545-0723
48.6421-5.................................................. 1545-0162
1545-0723
48.6421-6.................................................. 1545-0162
1545-0723
48.6421-7.................................................. 1545-0162
1545-0723
48.6424-0.................................................. 1545-0723
48.6424-1.................................................. 1545-0723
48.6424-2.................................................. 1545-0723
48.6424-3.................................................. 1545-0723
48.6424-4.................................................. 1545-0723
48.6424-5.................................................. 1545-0723
48.6424-6.................................................. 1545-0723
48.6427-0.................................................. 1545-0723
48.6427-1.................................................. 1545-0023
1545-0162
1545-0723
48.6427-2.................................................. 1545-0162
1545-0723
48.6427-3.................................................. 1545-0723
48.6427-4.................................................. 1545-0723
48.6427-5.................................................. 1545-0723
48.6427-8.................................................. 1545-1418
48.6427-9.................................................. 1545-1418
48.6427-11T................................................ 1545-1608
49.4251-1.................................................. 1545-1075
49.4251-2.................................................. 1545-1075
49.4253-3.................................................. 1545-0023
49.4253-4.................................................. 1545-0023
49.4264(b)-1............................................... 1545-0023
1545-0226
1545-0226
1545-0912
1545-0912
1545-0257
1545-0230
1545-0224
1545-0225
1545-0224
1545-0230
[[Page 199]]
49.4271-1(d)............................................... 1545-0685
52.4682-1(b)(2)(iii)....................................... 1545-1153
52.4682-2(b)............................................... 1545-1153
1545-1361
52.4682-2(d)............................................... 1545-1153
1545-1361
52.4682-3(c)(2)............................................ 1545-1153
52.4682-3(g)............................................... 1545-1153
52.4682-4(f)............................................... 1545-1153
1545-0257
52.4682-5(d)............................................... 1545-1361
52.4682-5(f)............................................... 1545-1361
53.4940-1.................................................. 1545-0052
1545-0196
53.4942(a)-1............................................... 1545-0052
53.4942(a)-2............................................... 1545-0052
53.4942(a)-3............................................... 1545-0052
53.4942(b)-3............................................... 1545-0052
53.4945-1.................................................. 1545-0052
53.4945-4.................................................. 1545-0052
53.4945-5.................................................. 1545-0052
53.4945-6.................................................. 1545-0052
53.4947-1.................................................. 1545-0196
53.4947-2.................................................. 1545-0196
53.4948-1.................................................. 1545-0052
53.4961-2.................................................. 1545-0024
53.4963-1.................................................. 1545-0024
53.6001-1.................................................. 1545-0052
53.6011-1.................................................. 1545-0049
1545-0052
1545-0092
1545-0196
53.6065-1.................................................. 1545-0052
53.6071-1.................................................. 1545-0049
53.6081-1.................................................. 1545-0066
1545-0148
53.6161-1.................................................. 1545-0575
54.4972-1.................................................. 1545-0197
54.4975-7.................................................. 1545-0575
54.4977-1T................................................. 1545-0771
54.4980B-6................................................. 1545-1581
54.4980B-7................................................. 1545-1581
54.4980B-8................................................. 1545-1581
54.4981A-1T................................................ 1545-0203
54.6011-1.................................................. 1545-0575
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54.9801-3T................................................. 1545-1537
54.9801-4T................................................. 1545-1537
54.9801-5T................................................. 1545-1537
54.9801-6T................................................. 1545-1537
55.6001-1.................................................. 1545-0123
55.6011-1.................................................. 1545-0999
1545-0123
1545-1016
55.6061-1.................................................. 1545-0999
55.6071-1.................................................. 1545-0999
56.4911-6.................................................. 1545-0052
56.4911-7.................................................. 1545-0052
56.4911-9.................................................. 1545-0052
56.4911-10................................................. 1545-0052
56.6001-1.................................................. 1545-1049
56.6011-1.................................................. 1545-1049
56.6081-1.................................................. 1545-1049
56.6161-1.................................................. 1545-1049
1545-0257
145.4051-1................................................. 1545-0745
145.4052-1................................................. 1545-1608
1545-0120
1545-0745
1545-1076
145.4061-1................................................. 1545-0745
1545-0257
1545-0230
1545-0224
156.6001-1................................................. 1545-1049
156.6011-1................................................. 1545-1049
156.6081-1................................................. 1545-1049
156.6161-1................................................. 1545-1049
301.6011-2................................................. 1545-0225
1545-0350
1545-0387
1545-0441
1545-0957
301.6017-1................................................. 1545-0090
301.6034-1................................................. 1545-0092
301.6035-1................................................. 1545-0123
301.6036-1................................................. 1545-0013
1545-0773
301.6047-1................................................. 1545-0367
1545-0957
301.6057-1................................................. 1545-0710
301.6057-2................................................. 1545-0710
301.6058-1................................................. 1545-0710
301.6059-1................................................. 1545-0710
301.6103(c)-1.............................................. 1545-0280
301.6104(a)-1.............................................. 1545-0495
301.6104(a)-5.............................................. 1545-0056
301.6104(a)-6.............................................. 1545-0056
301.6104(b)-1.............................................. 1545-0094
1545-0742
301.6104(d)-1.............................................. 1545-0092
301.6109-1................................................. 1545-0003
1545-0295
1545-0367
1545-0387
1545-0957
1545-1461
301.6109-3T................................................ 1545-1564
301.6110-3................................................. 1545-0074
301.6110-5................................................. 1545-0074
301.6111-1T................................................ 1545-0865
1545-0881
301.6112-1T................................................ 1545-0865
301.6114-1................................................. 1545-1126
1545-1484
301.6222(a)-2T............................................. 1545-0790
301.6222(b)-1T............................................. 1545-0790
301.6222(b)-2T............................................. 1545-0790
301.6222(b)-3T............................................. 1545-0790
301.6227(b)-1T............................................. 1545-0790
1545-0790
301.6231(a)(7)-1........................................... 1545-0790
301.6241-1T................................................ 1545-0130
301.6316-4................................................. 1545-0074
301.6316-5................................................. 1545-0074
301.6316-6................................................. 1545-0074
301.6316-7................................................. 1545-0029
301.6324A-1................................................ 1545-0015
301.6361-1................................................. 1545-0074
1545-0024
301.6361-2................................................. 1545-0024
301.6361-3................................................. 1545-0074
301.6402-2................................................. 1545-0024
1545-0073
1545-0091
301.6402-3................................................. 1545-0055
1545-0073
1545-0091
1545-0132
301.6402-5................................................. 1545-0928
301.6404-1................................................. 1545-0024
301.6404-2T................................................ 1545-0024
301.6404-3................................................. 1545-0024
301.6405-1................................................. 1545-0024
[[Page 200]]
301.6501(c)-1.............................................. 1545-1241
301.6501(d)-1.............................................. 1545-0074
1545-0430
301.6501(o)-2.............................................. 1545-0728
301.6511(d)-1.............................................. 1545-0582
1545-0024
301.6511(d)-2.............................................. 1545-0582
1545-0024
301.6511(d)-3.............................................. 1545-0024
1545-0582
301.6652-2................................................. 1545-0092
301.6656-1................................................. 1545-0794
301.6656-2................................................. 1545-0794
301.6685-1................................................. 1545-0092
301.6689-1T................................................ 1545-1056
301.6707-1T................................................ 1545-0865
1545-0881
301.6708-1T................................................ 1545-0865
301.6712-1................................................. 1545-1126
301.6723-1A(d)............................................. 1545-0909
301.6903-1................................................. 1545-0013
301.6905-1................................................. 1545-0074
301.7001-1................................................. 1545-0123
301.7101-1................................................. 1545-1029
301.7207-1................................................. 1545-0092
301.7216-2................................................. 1545-0074
301.7216-2(o).............................................. 1545-1209
301.7425-3................................................. 1545-0854
301.7430-2(c).............................................. 1545-1356
301.7507-8................................................. 1545-0123
301.7507-9................................................. 1545-0123
301.7513-1................................................. 1545-0429
301.7517-1................................................. 1545-0015
301.7605-1................................................. 1545-0795
301.7623-1................................................. 1545-0409
1545-1534
301.7654-1................................................. 1545-0803
301.7701-3................................................. 1545-1486
301.7701-4................................................. 1545-1465
301.7701-7................................................. 1545-1600
301.7701-16................................................ 1545-0795
301.7701(b)-1.............................................. 1545-0089
301.7701(b)-2.............................................. 1545-0089
301.7701(b)-3.............................................. 1545-0089
301.7701(b)-4.............................................. 1545-0089
301.7701(b)-5.............................................. 1545-0089
301.7701(b)-6.............................................. 1545-0089
301.7701(b)-7.............................................. 1545-0089
1545-1126
301.7701(b)-9.............................................. 1545-0089
301.7805-1................................................. 1545-0805
301.9001-1................................................. 1545-0220
301.9100-1................................................. 1545-1488
301.9100-4T................................................ 1545-0016
1545-0042
1545-0074
1545-0129
1545-0172
1545-0619
301.9100-6T................................................ 1545-0872
301.9100-7T................................................ 1545-0982
301.9100-8................................................. 1545-1112
301.9100-11T............................................... 1545-0123
301.9100-12T............................................... 1545-0026
1545-0074
1545-0172
1545-1027
301.9100-14T............................................... 1545-0046
301.9100-15T............................................... 1545-0046
301.9100-16T............................................... 1545-0152
302.1-7.................................................... 1545-0024
305.7701-1................................................. 1545-0823
305.7871-1................................................. 1545-0823
404.6048-1................................................. 1545-0160
420.0-1.................................................... 1545-0710
Part 502................................................... 1545-0844
Part 503................................................... 1545-0837
Part 509................................................... 1545-0846
Part 513................................................... 1545-0834
Part 514................................................... 1545-0845
Part 516................................................... 1545-0841
Part 517................................................... 1545-0849
Part 520................................................... 1545-0833
Part 521................................................... 1545-0848
601.104.................................................... 1545-0233
601.105.................................................... 1545-0091
601.201.................................................... 1545-0019
1545-0819
601.204.................................................... 1545-0152
601.401.................................................... 1545-0257
601.504.................................................... 1545-0150
601.601.................................................... 1545-0800
601.602.................................................... 1545-0295
1545-0387
1545-0957
601.702.................................................... 1545-0429
------------------------------------------------------------------------
(26 U.S.C. 7805)
[T.D. 8011, 50 FR 10222, Mar. 14, 1985; 64 FR 15688, Apr. 1, 1999]
Editorial Note: For Federal Register citations affecting
Sec. 602.101, see the List of CFR Sections Affected in the Findings Aids
section of 26 CFR part 600-end.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997, the
table in Sec. 602.101 was amended by removing the entries for 1.1441-8T,
1.1461-3, 1.1461-4, 35a.9999-3, part 502, part 503, part 516, part 517,
and part 520; adding entries for 1.1441-1, 1.1441-4, 11.1441-8, 1.1441-
9, 31.3401(a)(6), and 301.6114-1; and revising the entries for 1.1441-5,
1.1441-6, 1.1461-1, and 301.6402-3, effective Jan. 1, 1999. At 63 FR
2723, Jan. 16, 1998, the entry for ``11.1441-8'' was corrected to read
``1.1441-8'', effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec.
31, 1998, the effective date was delayed to Jan. 1, 2000. For the
convenience of the user, the revised text is set forth as follows:
Sec. 602.101 OMB Control numbers.
* * * * *
------------------------------------------------------------------------
Current OMB
CFR part or section where identified and described control No.
------------------------------------------------------------------------
* * * * *
1.1441-5................................................... 1545-0096
1545-0795
1545-1484
1.1441-6................................................... 1545-0055
1545-0795
1545-1484
1.1461-1................................................... 1545-0054
1545-0055
[[Page 201]]
1545-0795
1545-1484
* * * * *
301.6402-3................................................. 1545-0055
1545-0073
1545-0091
1545-0132
1545-1484
* * * * *
------------------------------------------------------------------------
[[Page 203]]
List of CFR Sections Affected
All changes in this volume of the Code of Federal Regulations which were
made by documents published in the Federal Register since January 1,
1973, are enumerated in the following list. Entries indicate the nature
of the changes effected. Page numbers refer to Federal Register pages.
The user should consult the entries for chapters and parts as well as
sections for revisions.
For the period before January 1, 1973, see the ``List of Sections
Affected, 1949-1963 and 1964-1972,'' published in three separate
volumes.
1973-1987
(No regulations published)
1988
26 CFR
53 FR
Page
Chapter I
501 Removed.......................................................35506
504--507 Removed..................................................35506
511 Removed.......................................................35506
512 Removed.......................................................35506
518 Removed.......................................................35506
519 Removed.......................................................35506
1989
26 CFR
54 FR
Page
Chapter I
510 Removed.......................................................37453
515 Removed.......................................................37453
1990-1996
(No regulations published)
1997
26 CFR
62 FR
Page
502 Removed; eff. 1-1-99..........................................53497
503 Removed; eff. 1-1-99..........................................53497
509 Authority citation added......................................53497
509.1--509.10 (Subpart) Removed; eff. 1-1-99......................53497
509.103 (e) removed; eff. 1-1-99..................................53497
509.117 (a) removed; eff. 1-1-99..................................53497
509.119 Removed; eff. 1-1-99......................................53497
509.122 Removed; eff. 1-1-99......................................53497
513 Authority citation revised....................................53497
513.1 Removed; eff. 1-1-99........................................53497
513.2 Revised; eff. 1-1-99........................................53497
513.3 Revised; eff. 1-1-99........................................53497
513.4 Revised; eff. 1-1-99........................................53498
513.5 Revised; eff. 1-1-99........................................53498
514 Authority citation added......................................53498
514.1--514.32 (Subpart) Authority citation removed................53498
514.1--514.10 Undesignated center heading removed; eff. 1-1-99....53498
514.20 Removed; eff. 1-1-99.......................................53498
514.21 Removed; eff. 1-1-99.......................................53498
514.22 (c) removed; eff. 1-1-99...................................53498
514.23 Removed; eff. 1-1-99.......................................53498
514.24 Removed; eff. 1-1-99.......................................53498
514.25 Removed; eff. 1-1-99.......................................53498
514.26 Removed; eff. 1-1-99.......................................53498
514.27 Removed; eff. 1-1-99.......................................53498
514.28 Removed; eff. 1-1-99.......................................53498
514.29 Removed; eff. 1-1-99.......................................53498
514.30 Removed; eff. 1-1-99.......................................53498
514.31 Removed; eff. 1-1-99.......................................53498
514.32 Removed; eff. 1-1-99.......................................53498
514.101--514.117 (Subpart) Undesignated center heading and
sections removed; eff. 1-1-99..............................53498
516 Removed; eff. 1-1-99..........................................53498
517 Removed; eff. 1-1-99..........................................53498
520 Removed; eff. 1-1-99..........................................53498
521 Authority citation revised....................................53498
521.1--521.8 (Subpart) Removed; eff. 1-1-99.......................53498
521.103 (d) removed; eff. 1-1-99..................................53498
[[Page 204]]
1998
26 CFR
63 FR
Page
Chapter I
502 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.........72183
503 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.........72183
509.1--509.10 (Subpart) Regulation at 62 FR 53497 eff. date
delayed to 1-1-00..........................................72183
509.103 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.....72183
509.117 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.....72183
509.119 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.....72183
509.122 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.....72183
513.1 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.......72183
513.2 Corrected....................................................2723
Regulation at 62 FR 53497 eff. date delayed to 1-1-00..........72183
513.3 Regulation at 62 FR 53497 eff. date delayed to 1-1-00.......72183
513.4 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.......72183
513.5 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.......72183
514.1--514.10 Regulation at 62 FR 53498 eff. date delayed to 1-1-
00.........................................................72183
514.20 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.21 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.22 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.23 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.24 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.25 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.26 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.27 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.28 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.29 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.30 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.31 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.32 Regulation at 62 FR 53498 eff. date delayed to 1-1-00......72183
514.101--514.117 (Subpart) Regulation at 62 FR 53498 eff. date
delayed to 1-1-00..........................................72183
516 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.........72183
517 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.........72183
520 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.........72183
521.1--521.8 (Subpart) Regulation at 62 FR 53498 eff. date
delayed to 1-1-00..........................................72183
521.103 Regulation at 62 FR 53498 eff. date delayed to 1-1-00.....72183
1999
(No regulations published from January 1, 1999 through April 1, 1999)