Sec. 143. Withholding of tax at source. Sec. 143. (a) Tax-free covenant bonds. Same as 1944. Sec. 143. (a) (1) Requirement Sec. 143. (a) (1) Requirement of withholding. In any case of withholding. where bonds, mortgages, or deeds of trust, or other similar obligations of a corporation, issued before January 1, 1934 contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this chapter upon the obligee, or to reimburse the obligee for any portion of the tax, or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon, or to retain therefrom under any law of the United States, the obligor shall deduct and withhold a tax equal to 2 per centum of the interest upon such bonds, mortgages, deeds of trust, or other obligations, whether such interest is payable annually or at shorter or longer periods, if payable to an individual, a partnership, or a foreign corporation not engaged in trade or business within the United States: Provided, That if the liability assumed by the obligor does not exceed 2 per centum of the interest, then the deduction and withholding shall be at the following rates: (A) 30 per centum in the case of a nonresident alien individual (except that such rate shall be reduced, in the case of a resident of any country in North, Central, or South America or in the West Indies, or of Newfoundland, to such rate, not less than 5 per centum, as may be provided by treaty with such country), or of any partnership not engaged in trade or Sec. 143. Withholding of tax at source. Sec. 143. (a) Tax-free covenant bonds. Sec. 143. (a) (1) Requirement of withholding. Same as 1944. Taxable Years Beginning in 1945 Sec. 142. (c) Law applicable to fiduciaries. Same as 1944. Sec. 143. Withholding of tax at source. Sec. 143. (a) Tax-free covenant bonds. Sec. 143. (a) (1) Requirement of withholding. Same as 1944. Taxable Years Beginning before 1944 Sec. 142. (c) Law applicable to fiduciaries. Section originated 1918 as For any amendments prior to Second Edition, p. 166, Sec. 143. Withholding of tax at source. Sec. 143. (a) Tax-free covenant bonds. Sec. 143. (a) (1) Requirement case of withholding. Sec. 143. (a) (1) Requirement of withholding. In any where bonds, mortgages, or deeds of trust, or other similar obligations of a corporation, issued before January 1, 1934, contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this chapter upon the obligee, or to reimburse the obligee for any portion of the tax, or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon, or to retain therefrom under any law of the United States, the obligor shall deduct and withhold a tax equal to 2 per centum of the interest upon such bonds, mortgages, deeds of trust, or other obligations, whether such interest is payable annually or at shorter or longer periods, if payable to an individual, a partnership, or a foreign corporation not engaged in trade or business within the United States: Provided, That if the liability assumed by the obligor does not exceed 2 per centum of the interest, then the deduction and withholding shall be at the following rates: (A) 30 per centum in the case of a nonresident alien individual (except that such rate shall be reduced, in the case of a resident of any country in North, Central, or South America, or in the West Indies, or of Newfoundland, to such rate, not less than 5 per centum, as may be provided by treaty with Section originated 1913 as Second Edition, p. 148, Taxable Years Beginning in 1949 business within the United States and composed in whole or in part of nonresident aliens, (B) in the case of such a foreign corporation, 30 per centum, and (C) 2 per centum in the case of other individuals and partnerships: Provided further, That if the owners of such obligations are not known to the withholding agent the Commissioner may authorize such deduction and withholding to be at the rate of 2 per centum, or, if the liability assumed by the obligor does not exceed 2 per centum, of the interest, then at the rate of 30 per centum. Sec. 143. (a) (2) Benefit of credits against net income.-Such deduction and withholding shall not be required in the case of a citizen or resident entitled to receive such interest, if he files with the withholding agent on or before February 1 a signed notice in writing claiming the benefit of the exemptions provided in Sec. 25 (b); nor in the case of a nonresident alien individual if so provided for in regulations prescribed by the Commissioner under section 215. Sec. 143. (a) (2) Benefit of credits against net income. Same as 1946 and 1947. Sec. 143. (a) (2) Benefit of credits against net income. Such deduction and withholding shall not be required in the case of a citizen or resident entitled to receive such interest, if he files with the withholding agent on or before February 1 a signed notice in writing claiming the benefit of the ner mal tax exemption provided in See, 95 (a) (2) and the surtax exemptions provided in section 25 (b); nor in the case of a nonresident alien individual if so provided for in regulations prescribed by the Commissioner under section 215. Sec. 143 (a) (2), I. R. C., supra, amended by Sec. 102 (b) (5), R. A. of 1945, by omitting language in stricken-through type. Sec. 102 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1945. Sec. 143. (a) (3) Income of Sec. 143. (a) (3) Income of obligor and obligee.—The obligor obligor and obligee. shall not be allowed a deduction for the payment of the tax imposed by this chapter, or any other tax paid Same as 1944. Sec. 143. (a) (3) Income of obligor and obligee. Same as 1944. pursuant to the tax-free covenant clause, nor shall such tax be included in the gross income of the obligee. |