1 shall be reduced, in the case of a reduced, in the case of a resident Taxable Years Beginning before 1939 Sec. 143. (a) (2) Benefit of cred- Sec. 143. (a) (2) Benefit of credits against net income.-Such de- its against net income.-Such deduction and withholding shall not duction and withholding shall not be required in the case of a citizen be required in the case of a citizen or resident entitled to receive such or resident entitled to receive such interest, if he files with the with-interest, if he files with the withholding agent on or before Febru- holding agent on or before February 1 a signed notice in writing ary 1 a signed notice in writing claiming the benefit of the credits claiming the benefit of the credits provided in section 25 (b); nor provided in section 25 (b); nor in the case of a nonresident alien in the case of a nonresident alien individual if so provided for in regulations prescribed by the Commissioner under section 215. individual if so provided for in Sec. 143. (a) (3) Income of Sec. 143. (a) (3) Income of obligor and obligee. The obligor obligor and obligee. The obligor shall not be allowed a deduction shall not be allowed a deduction for the payment of the tax imposed for the payment of the tax imposed by this chapter, or any other tax by this chapter, or any other tax paid pursuant to the tax-free cov-paid pursuant to the tax-free covenant clause, nor shall such tax be enant clause, nor shall such tax be included in the gross income of the included in the gross income of the obligee. obligee. Sec. 143 (a), I. R. C., supra, amended by Sec. 5 (a), R. A. of 1940, by substituting "15" for "10." Sec. 5 (c) of said Act makes amendment effective June 26, 1940. Sec. 143. (a) (2) Benefit of credits against net income. See p. 252, Eighth Edition. Sec. 143. (a) (3) Income of obligor and obligee. See p. 252, Eighth Edition. Taxable Years Taxable Years Taxable Years Sec. 143. (b) Nonresident aliens. Sec. 143. (b) Nonresident aliens. Sec. 143. (b) Nonresident aliens. -All persons, in whatever capac--All persons, in whatever capac--All persons, in whatever capacity acting, including lessees or ity acting, including lessees or ity acting, including lessees or mortgagors of real or personal mortgagors of real or personal mortgagors of real or personal property, fiduciaries, employers, and property, fiduciaries, employers, and property, fiduciaries, fiduciaries, employers, all officers and employees of the all officers and employees of the and all officers and employees of United States, having the control, United States, having the control, the United States, having the conreceipt, custody, disposal, or pay- receipt, custody, disposal, or pay- trol, receipt, custody, disposal, or ment of interest (except interest on ment of interest (except interest on payment of interest (except interdeposits with persons carrying on deposits with persons carrying on est on deposits with persons carrythe banking business paid to per- the banking business paid to persons ing on the banking business paid sons not engaged in business in the not engaged in business in the to persons not engaged in business United States), dividends, rent, United States and not having an in the United States and not havsalaries, wages, premiums, annui- office or place of business therein), ing an office or place of business ties, compensations, remunerations, dividends, rent, salaries, wages, therein), dividends, rent, salaries, emoluments, or other fixed or deter- premiums, annuities, compensa- wages, premiums, annuities, comminable annual or periodical gains, tions, remunerations, emoluments, pensations, remunerations, emoluprofits, and income (but only to the or other fixed or determinable ments, or other fixed or determiextent that any of the above items annual or periodical gains, profits, nable annual or periodical gains, constitutes gross income from and income (but only to the extent profits, and income (but only to sources within the United States), that any of the above items con- the extent that any of the above of any nonresident alien individual, stitutes gross income from sources items constitutes gross income or of any partnership not engaged within the United States), of any from sources within the United in trade or business within the nonresident alien individual, or of States), of any nonresident alien United States and composed in any partnership not engaged in individual, or of any partnership whole or in part of nonresident trade or business within the United not engaged in trade or business aliens, shall (except in the cases States and not having any office or within the United States and not provided for in subsection (a) of place of business therein and com- having any office or place of busithis section and except as otherwise posed in whole or in part of nonness therein and composed in whole provided in regulations prescribed resident aliens, shall (except in or in part of nonresident aliens, by the Commissioner under section the cases provided for in subsection shall (except in the cases provided 215) deduct and withhold from such (a) of this section and except as for in subsection (a) of this secannual or periodical gains, profits, otherwise provided in regulations tion and except as otherwise proand income a tax equal to 30 per prescribed by the Commissioner vided in regulations prescribed by centum thereof, except that such under section 215) deduct and with- the Commissioner under section rate shall be reduced, in the case of hold from such annual or periodical 215) deduct and withhold from a nonresident alien individual agains, profits, and income a tax such annual or periodical gains, resident of any country in North, equal to 30 27 per centum profits, and income a tax equal to Central, or South America, or in thereof, except that such rate shall 2725-per centum thereof, except the West Indies, or of Newfound-be reduced, in the case of a non- that such rate shall be reduced, in land, to such rate (not less than 5 resident alien individual a resident the case of a nonresident alien indiper centum) as may be provided by of any country in North, Central, vidual a resident of a contiguous treaty with such country: Pro- or South America, or in the West country any country in North, Indies, or of Newfoundland, to such Central, or South America, or in vided, That no such deduction or withholding shall be required in the rate (not less than 5 per centum) case of dividends paid by a foreign as may be provided by treaty with the West Indies, or of Newfoundcorporation unless (1) such corpo- such country: Provided, That no land, to such rate (not less than ration is engaged in trade or busi- such deduction or withholding shall 5 per centum) as may be proness within the United States and be required in the case of dividends vided by treaty with such country: (2) more than 85 per centum of paid by a foreign corporation un- Provided, That no such deduction or the gross income of such corpora- less (1) such corporation is en- withholding shall be required in tion for the three-year period end-gaged in trade or business within the case of dividends paid by a ing with the close of its taxable the United States or has an office foreign corporation unless (1) such year preceding the declaration of or place of business therein, and corporation is engaged in trade or such dividends (or for such part (2) more than 85 per centum of business within the United States of such period as the corporation the gross income of such corpora- or has an office or place of business has been in existence) was de- tion for the three-year period end- therein, and (2) more than 85 per rived from sources within the ing with the close of its taxable centum of the gross income of such United States as determined under year preceding the declaration of corporation for the three-year pethe provisions of section 119: Pro- such dividends (or for such part riod ending with the close of its vided further, That the Commis- of such period as the corporation taxable year preceding the declarasioner may authorize such tax to has been in existence) was de- tion of such dividends (or for such be deducted and withheld from the rived from sources within the part of such period as the corporainterest upon any securities the United States as determined under tion has been in existence) was de Years n 194 reside thatere em and Taxable Years Sec. 143. (b) Nonresident aliens. Taxable Years Sec. 143. (b) Nonresident aliens. -All persons, in whatever capac--All persons, in whatever capacity acting, including lessees or ity acting, including lessees or mortgagors of real or personal mortgagors of real or personal property, fiduciaries, employers, property, fiduciaries, employers, and all officers and employees of and all officers and employees of the United States, having the con- the United States, having the control, receipt, custody, disposal, or trol, receipt, custody, disposal, or payment of interest (except inter- payment of interest (except interest on deposits with persons carry-est on deposits with persons carrying on the banking business paid ing on the banking business paid to persons not engaged in business to persors not engaged in business in the United States and not hav- in the United States and not having an office or place of business ing an office or place of business therein), dividends, rent, salaries, therein), dividends, rent, salaries, wages, premiums, annuities, com- wages, premiums, annuities, compensations, remunerations, emolu-pensations, remunerations, emoluments, or other fixed or determi- ments, or other fixed or determinable annual or periodical gains, nable annual or periodical gains, profits, and income (but only to profits, and income (but only to the extent that any of the above the extent that any of the above items constitutes gross income items constitutes gross income from sources within the United from sources within the United States), of any nonresident alien States), of any nonresident alien individual, or of any partnership individual, or of any partnership not engaged in trade or business not engaged in trade or business within the United States and not within the United States and not having any office or place of busi- having any office or place of business therein and composed in whole ness therein and composed in whole or in part of nonresident aliens, or in part of nonresident aliens, shall (except in the cases provided shall (except in the cases provided for in subsection (a) of this sec- for in subsection (a) of this section and except as otherwise pro- tion, and except as otherwise provided in regulations prescribed by vided in regulations prescribed by the Commissioner under section the Commissioner under section 215) deduct and withhold from 215) deduct and withhold from such annual or periodical gains, such annual or periodical gains, profits, and income a tax equal to profits, and income a tax equal to 15 10 per centum thereof, except 10 per centum thereof, except that that such rate shall be reduced, in such rate shall be reduced, in the the case of a nonresident alien indi- case of a nonresident alien individvidual a resident of a contiguous ual a resident of a contiguous country, to such rate (not less than country, to such rate (not less than per centum) as may be provided 5 per centum) as may be provided by treaty with such country: Pro- by treaty with such country: Provided, That no such deduction or vided, That no such deduction or withholding shall be required in withholding shall be required in the the case of dividends paid by a case of dividends paid by a foreign foreign corporation unless (1) such corporation unless (1) such corpocorporation is engaged in trade or ration is engaged in trade or busibusiness within the United States ness within the United States or or has an office or place of business has an office or place of business therein, and (2) more than 85 per therein, and (2) more than 85 per centum of the gross income of such centum of the gross income of such corporation for the three-year pe- corporation for the three-year period ending with the close of its riod ending with the close of its taxable year preceding the declara- taxable year preceding the declaration of such dividends (or for such tion of such dividends (or for such part of such period as the corpora- part of such period as the corporation has been in existence) was de- tion has been in existence) was derived from sources within the rived from sources within the United United States as determined under States as determined under the prothe provisions of section 119: Pro- visions of section 119: Provided vided further, That the Commis- further, That the Commissioner may sioner may authorize such tax to authorize such tax to be deducted 5 Taxable Years Beginning before 1939 Sec. 143. (b) Nonresident aliens. See p. 252, Eighth Edition Taxable Years Taxable Years Taxable Years from sources within the owners of which are not known to the provisions of section 119: Pro- rived the withholding agent: Provided vided further, That the Commis- United States as determined under further, That the deduction and sioner may authorize such tax to the provisions of section 119: Prowithholding in the case of interest be deducted and withheld from the vided further, That the Commison bonds, mortgages, or deeds of interest upon any securities the sioner may authorize such tax to trust or other similar obligations of owners of which are not known to be deducted and withheld from the a corporation, within the provisions the withholding agent: Provided interest upon any securities the of subsection (a) (1) of this section further, That the deduction and owners of which are not known to were it not for the fact that the withholding in the case of interest the withholding agent. Under regmaturity date of such obligations on bonds, mortgages, or deeds of ulations prescribed by the Commishas been extended on or after Janu- trust or other similar obligations of sioner, with the approval of the ary 1, 1934, and the liability a corportion, within the provisions Secretary, there may be exempted assumed by the debtor exceeds 271/2 of subsection (a) (1) of this section from such deduction and withholdper centum of the interest, shall not were it not for the fact that the ing the compensation for personal exceed the rate of 272 per centum maturity date of such obligations services of nonresident alien indiper annum. Under regulations has been extended on or after Janu- viduals who enter and leave the prescribed by the Commissioner, ary 1, 1934, and the liability United States at frequent intervals. with the approval of the Secretary, assumed by the debtor exceeds 27/2 there may be exempted from such per centum of the interest, shall not deduction and withholding the exceed the rate of 272 per centum "271/2" Under regulations compensation for personal services per annum. of nonresident alien individuals prescribed by the Commissioner, who enter and leave the United with the approval of the Secretary, States at frequent intervals. Sec. 143 (b), I. R. C., supra, amended by Sec. 108 (a) and (b) and by Sec. 160 (a) (2), R. A. of 1942, to read as above. For Sec. 143 (b), I. R. C., before amendment and taxable years in respect of which amendments are applicable, see 1942 column. there may be exempted from such Sec. 143 (b), I. R. C.. supra, amended by Sec. 108 Sec. 143 (b), I. R. C., supra, Sec. 143 (b), I. R. C., again amended by Sec. 160 (a) (2), R. A. of 1942, by omitting all language shown in stricken through type except "27." Sec. 160 (a) (4) of said Act makes amendment effective Oct. 31, 1942. Sec. 143 (b), I. R. C., supra, amended by Sec. 107 (a), R. A. of 1941, by substituting for "15." Sec. 107 (c) of said Act makes amendment effective Sept. 30, 1941. Sec. 143 (b), I. R. C., again amended by Sec. 109 (a), R. A. of 1941, by omitting words "a contiguous country" and adding language in underlined italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 143. (c) Return and pay- Sec. 143. (c) Return and paySec. 143. (c) Return and payment.-Every person required to ment.-Every person required to ment.-Every person required to deduct and withhold any tax under deduct and withhold any tax under deduct and withhold any tax under this section shall make return this section shall make return this section shall make return thereof on or before March 15 of thereof on or before March 15 of thereof on or before March 15 of each year and shall on or before each year and shall on or before each year and shall on or before June 15, in lieu of the time pre- June 15, in lieu of the time pre- June 15, in lieu of the time prescribed in section 56, pay the tax scribed in section 56, pay the tax scribed in section 56, pay the tax to the official of the United States to the official of the United States to the official of the United States Government authorized to receive Government authorized to receive Government authorized to receive it. Every such person is hereby it. Every such person is hereby it. Every such person is hereby made liable for such tax and is made liable for such tax and is made liable for such tax and is hereby indemnified against the hereby indemnified against the hereby indemnified against the claims and demands of any per- claims and demands of any per- claims and demands of any person for the amount of any pay- son for the amount of any pay-son for the amount of any pay ments made in accordance with the ments made in accordance with the ments made in accordance with the provisions of this section. provisions of this section. provisions of this section. be deducted and withheld from the and withheld from the interest upon interest upon any securities the any securities the owners of which owners of which are not known to are not known to the withholding the withholding agent. Under reg- agent. Under regulations preulations prescribed by the Commis- scribed by the Commissioner, with sioner, with the approval of the the approval of the Secretary, Secretary, there may be exempted there may be exempted from such from such deduction and withhold- deduction and withholding the coming the compensation for personal pensation for personal services of services of nonresident alien indi- nonresident alien individuals who Ividuals who enter and leave the enter and leave the United States United States at frequent intervals. at frequent intervals. Sec. 143 (b), I. R. C., supra, amended by Sec. 5 (a), R. A. of 1940, by substituting "15" for "10." Sec. 5 (c) of said Act makes amendment effective June 26, 1940. Taxable Years Beginning before 1939 Sec. 143. (c) Return and pay Sec. 143. (c) Return and pay- Sec. 143. (c) Return and payment.-Every person required to ment.-Every person required to ment. deduct and withhold any tax under deduct and withhold any tax under this section shall make return this section shall make return thereof on or before March 15 of thereof on or before March 15 of each year and shall on or before each year and shall on or before June 15, in lieu of the time pre- June 15, in lieu of the time prescribed in section 56, pay the tax scribed in section 56, pay the tax to the official of the United States to the official of the United States Government authorized to receive Government authorized to receive it. Every such person is hereby it. Every such person is hereby made liable for such tax and is made liable for such tax and is hereby indemnified against the hereby indemnified against the claims and demands of any per- claims and demands of any person for the amount of any pay-son for the amount of any payments made in accordance with the ments made in accordance with the provisions of this section. provisions of this section. See p. 256, Eighth Edition. |