Sec. 1.1441-0 Outline for regulations provisions for section 1441.
This section lists captions contained in §§1.1441-1 through 1.1441-10.
Sec. 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
(a) Purpose and scope.
(b) General rules of withholding.
(1) Requirement to withhold on payments to foreign persons.
(2) Determination of payee and payee's status.
(i) In general.
(ii) Payments to a U.S. agent of a foreign person.
(iii) Payments to wholly-owned entities.
(A) Foreign-owned domestic entity.
(B) Foreign entity.
(iv) Payments to a U.S. branch of certain foreign banks or foreign insurance companies
(A) U.S. branch treated as a U.S. person in certain cases.
(B) Consequences to the withholding agent.
(C) Consequences to the U.S. branch.
(D) Definition of payment to a U.S. branch.
(E) Payments to other U.S. branches.
(v) Payments to a foreign intermediary.
(A) Payments treated as made to persons for whom the intermediary collects the payment.
(B) Payments treated as made to foreign intermediary.
(vi) Other payees.
(vii) Rules for reliably associating a payment with a withholding certificate or other appropriate documentation.
(A) Generally.
(B) Special rules applicable to a withholding certificate from a nonqualified intermediary or flow-through entity.
(C) Special rules applicable to a withholding certificate provided by a qualified intermediary that does not assume primary withholding responsibility.
(D) Special rules applicable to a withholding certificate provided by a qualified intermediary that assumes primary withholding responsibility under chapter 3 and chapter 4 of the Internal Revenue Code.
(E) Special rules applicable to a withholding certificate provided by a qualified intermediary that assumes primary Form 1099 reporting and backup withholding responsibility but not primary withholding under chapter 3 and chapter 4.
(F) Special rules applicable to a withholding certificate provided by a qualified intermediary that assumes primary withholding responsibility under chapter 3 and chapter 4 and primary Form 1099 reporting and backup withholding responsibility and a withholding certificate provided by a withholding foreign partnership or a withholding foreign trust.
(3) Presumptions regarding payee's status in the absence of documentation.
(i) General rules.
(ii) Presumptions of classification as individual, corporation, partnership, etc.
(A) In general.
(B) No documentation provided.
(C) Documentary evidence furnished for offshore obligation.
(iii) Presumption of U.S. or foreign status.
(A) Payments to exempt recipients.
(1) In general.
(2) Special rule for withholdable payments made to exempt recipients.
(B) Scholarships and grants.
(C) Pensions, annuities, etc.
(D) Payments with respect to offshore obligations.
(E) Certain payments for services.
(iv) Grace period.
(v) Special rules applicable to payments to foreign intermediaries.
(A) Reliance on claim of status as foreign intermediary.
(B) Beneficial owner documentation or allocation information is lacking or unreliable.
(vi) U.S. branches and territory financial institutions not treated as U.S. persons.
(vii) Joint payees.
(A) In general.
(B) Special rule for offshore obligations.
(viii) Rebuttal of presumptions.
(ix) Effect of reliance on presumptions and of actual knowledge or reason to know otherwise.
(A) General rule.
(B) Actual knowledge or reason to know that amount of withholding is greater than is required under the presumptions or that reporting of the payment is required.
(x) Examples.
(4) List of exemptions from, or reduced rates of, withholding under chapter 3 of the Code.
(5) Establishing foreign status under applicable provisions of chapter 61 of the Code.
(6) Rules of withholding for payments by a foreign intermediary or certain U.S. branches.
(i) In general.
(ii) Examples.
(7) Liability for failure to obtain documentation timely or to act in accordance with applicable presumptions.
(i) General rule.
(ii) Proof that tax liability has been satisfied.
(A) In general.
(B) Special rule for establishing that income is effectively connected with the conduct of a U.S. trade or business.
(iii) Liability for interest and penalties.
(iv) Special rule for determining validity of withholding certificate containing inconsequential errors.
(v) Special effective date.
(8) Adjustments, refunds, or credits of overwithheld amounts.
(9) Payments to joint owners.
(c) Definitions.
(1) Withholding.
(2) Foreign and U.S. person.
(i) In general.
(ii) Dual residents.
(3) Individual.
(i) Alien individual.
(ii) Nonresident alien individual.
(4) Certain foreign corporations.
(5) Financial institution and foreign financial institution (or FFI).
(6) Beneficial owner.
(i) General rule.
(ii) Special rules.
(A) General rule.
(B) Foreign partnerships.
(C) Foreign simple trusts and foreign grantor trusts.
(D) Other foreign trusts and foreign estates.
(7) Withholding agent.
(8) Person
(9) Source of income.
(10) Chapter 3 of the Code (or chapter 3).
(11) Reduced rate.
(12) Payee.
(13) Intermediary.
(14) Nonqualified intermediary.
(15) Qualified intermediary.
(16) Withholding certificate.
(17) Documentary evidence; other appropriate documentation.
(18) Documentation.
(19) Payor.
(20) Exempt recipient.
(21) Non-exempt recipient.
(22) Reportable amounts.
(23) Flow-through entity.
(24) Foreign simple trust.
(25) Foreign complex trust.
(26) Foreign grantor trust.
(27) Partnership.
(28) Nonwithholding foreign partnership (or NWP).
(29) Withholding foreign partnership (or WP).
(30) Possession of the United States or U.S. territory.
(31) Amount subject to chapter 3 withholding.
(32) EIN.
(33) Flow-through withholding certificate.
(34) Foreign payee.
(35) Intermediary withholding certificate.
(36) Nonwithholding foreign trust (or NWT).
(37) Payment with respect to an offshore obligation.
(38) Permanent residence address.
(i) In general.
(ii) Hold mail instruction.
(39) Standing instructions to pay amounts.
(40) Territory financial institution.
(41) TIN.
(42) Withholding foreign trust (or WT).
(43) Certified deemed-compliant FFI.
(44) Chapter 3 withholding rate pool.
(45) Chapter 3 status.
(46) Chapter 4 of the Code (or chapter 4).
(47) Chapter 4 status.
(48) Chapter 4 withholding rate pool.
(49) Deemed-compliant FFI.
(50) GIIN (or Global Intermediary Identification Number).
(51) NFFE.
(52) Nonparticipating FFI.
(53) Participating FFI.
(54) Preexisting obligation.
(55) Registered deemed-compliant FFI.
(56) Withholdable payment.
(d) Beneficial owner's or payee's claim of U.S. status.
(1) In general.
(2) Payments for which a Form W-9 is otherwise required.
(3) Payments for which a Form W-9 is not otherwise required.
(4) When a payment to an intermediary or flow-through entity may be treated as made to a U.S. payee.
(e) Beneficial owner's claim of foreign status.
(1) Withholding agent's reliance.
(i) In general.
(ii) Payments that a withholding agent may treat as made to a foreign person that is a beneficial owner.
(A) General rule.
(B) Additional requirements.
(2) Beneficial owner withholding certificate.
(i) In general.
(ii) Requirements for validity of certificate.
(A) In general.
(B) Requirement to collect foreign TIN and date of birth.
(1) In general.
(2) Definitions.
(3) Requirements for reasonable explanation of the absence of a foreign TIN.
(4) Exceptions to the requirement to obtain a foreign TIN (or reasonable explanation for its absence).
(i) Jurisdictions with which the United States does not have an agreement relating to the exchange of tax information.
(ii) Jurisdictions that do not issue foreign TINs.
(iii) Account holder that is a government, international organization, foreign central bank of issue, or resident of a U.S. territory.
(5) Transition rules for the foreign TIN requirement for a beneficial owner withholding certificate signed before January 1, 2018.
(i) Payments made before January 1, 2020.
(ii) Payments made after December 31, 2019.
(iii) Limitation on standard of knowledge.
(6) Transition rule for the date of birth requirement for a beneficial owner withholding certificate signed before January 1, 2018.
(3) Intermediary, flow-through, or U.S. branch withholding certificate.
(i) In general.
(ii) Intermediary withholding certificate from a qualified intermediary.
(iii) Intermediary withholding certificate from a nonqualified intermediary.
(iv) Withholding statement provided by nonqualified intermediary.
(A) In general.
(B) General requirements.
(C) Content of withholding statement.
(1) In general.
(2) Nonqualified intermediary withholding statement for withholdable payments.
(3) Alternative withholding statement.
(4) Example.
(D) Alternative procedures.
(1) In general.
(2) Withholding rate pools.
(i) In general.
(ii) Withholding rate pools for chapter 4 purposes.
(3) Allocation information.
(4) Failure to provide allocation information.
(5) Cure provision.
(6) Form 1042-S reporting in case of allocation failure.
(7) Liability for tax, interest, and penalties.
(8) Applicability to flow-through entities and certain U.S. branches.
(E) Notice procedures.
(v) Withholding certificate from certain U.S. branches (including territory financial institutions).
(vi) Reportable amounts.
(4) Applicable rules.
(i) Who may sign the certificate.
(A) In general.
(B) Electronic signatures.
(ii) Period of validity.
(A) General rule.
(1) Withholding certificates and documentary evidence.
(2) Documentary evidence for treaty claims and treaty statements.
(B) Indefinite validity period.
(C) Withholding certificate for effectively connected income.
(D) Change in circumstances.
(1) Defined.
(2) Obligation to notify a withholding agent of a change in circumstances.
(3) Withholding agent's obligation with respect to a change in circumstances.
(iii) Retention of documentation.
(iv) Electronic transmission of information.
(A) In general.
(B) Requirements.
(1) In general.
(2) Same information as paper Form W-8.
(3) Perjury statement and signature requirements.
(i) Perjury statement.
(ii) Electronic signature.
(4) Requests for electronic Form W-8 data.
(C) Form 8233.
(D) Forms and documentary evidence received by facsimile or email.
(E) Third party repositories.
(F) Examples.
(1) Example 1.
(2) Example 2.
(3) Example 3.
(v) Additional procedures for certificates provided electronically.
(vi) Acceptable substitute form.
(vii) Requirement of taxpayer identifying number.
(viii) Reliance rules.
(A) Classification.
(B) Status of payee as an intermediary or as a person acting for its own account.
(C) Reliance on a prior version of a withholding certificate.
(ix) Certificates to be furnished to withholding agent for each obligation unless exception applies.
(A) Exception for certain branch or account systems or system maintained by agent.
(B) Reliance on certification provided by introducing brokers.
(1) In general.
(2) Example.
(C) Reliance on documentation and certifications provided between principals and agents.
(1) Withholding agent as agent.
(2) Withholding agent as principal.
(D) Reliance upon documentation for accounts acquired in merger or bulk acquisition for value.
(5) Qualified intermediaries.
(i) In general.
(ii) Definition of qualified intermediary.
(iii) Withholding agreement.
(A) In general.
(B) Terms of the withholding agreement.
(iv) Assignment of primary withholding responsibility.
(v) Withholding statement.
(A) In general.
(B) Content of withholding statement.
(C) Withholding rate pools.
(1) In general.
(2) Withholding rate pool requirements for a withholdable payment.
(3) Alternative procedure for U.S. non-exempt recipients.
(D) Example.
(6) Qualified derivatives dealers.
(f) Effective/applicability date.
(1) In general.
(2) Lack of documentation for past years.
(3) Special rules related to section 871(m).
Sec. 1.1441-2 Amounts subject to withholding.
(a) In general.
(b) Fixed or determinable annual or periodical income.
(1) In general.
(i) Definition.
(ii) Manner of payment.
(iii) Determinability of amount.
(2) Exceptions.
(3) Original issue discount.
(i) Amount subject to tax.
(ii) Amounts subject to withholding.
(iii) Exceptions to withholding.
(4) Securities lending transactions and equivalent transactions.
(5) REMIC residual interests.
(6) Dividend equivalents.
(c) Other income subject to withholding.
(d) Exceptions to withholding where no money or property is paid or lack of knowledge.
(1) General rule.
(2) Cancellation of debt.
(3) Satisfaction of liability following underwithholding by withholding agent.
(4) Withholding exemption inapplicable.
(e) Payment.
(1) General rule.
(2) Income allocated under section 482.
(3) Blocked income.
(4) Special rules for dividends.
(5) Certain interest accrued by a foreign corporation.
(6) Payments other than in U.S. dollars.
(7) Payments of dividend equivalents.
(i) In general.
(ii) Payment.
(iii) Premiums and other upfront payments.
(f) Effective/applicability date.
Sec. 1.1441-3 Determination of amounts to be withheld.
(a) General rule.
(1) Withholding on gross amount.
(2) Coordination with chapter 4.
(b) Withholding on payments on certain obligations.
(1) Withholding at time of payment of interest.
(2) No withholding between interest payment dates.
(i) In general.
(ii) Anti-abuse rule.
(c) Corporate distributions.
(1) General rule.
(2) Exception to withholding on distributions.
(i) In general.
(ii) Reasonable estimate of accumulated and current earnings and profits on the date of payment.
(A) General rule.
(B) Procedures in case of underwithholding.
(C) Reliance by intermediary on reasonable estimate.
(D) Example.
(3) Special rules in the case of distributions from a regulated investment company.
(i) General rule
(ii) Reliance by intermediary on reasonable estimate.
(4) Coordination with withholding under section 1445.
(i) In general.
(A) Withholding under section 1441.
(B) Withholding under both sections 1441 and 1445.
(C) Coordination with REIT/QIE withholding.
(ii) Intermediary reliance rule.
(d) Withholding on payments that include an undetermined amount of income.
(1) In general.
(2) Withholding on certain gains.
(e) Payments other than in U.S. dollars.
(1) In general.
(2) Payments in foreign currency.
(f) Tax liability of beneficial owner satisfied by withholding agent.
(1) General rule.
(2) Example.
(g) Conduit financing arrangements
(1) Duty to withhold.
(2) Effective date.
(h) Dividend equivalents.
(1) Withholding on gross amount.
(2) Reliance by withholding agent on reasonable determinations.
(3) Effective/applicability date.
(i) Effective/applicability date.
Sec. 1.1441-4 Exemptions from withholding for certain effectively connected income and other amounts.
(a) Certain income connected with a U.S. trade or business.
(1) In general.
(2) Withholding agent's reliance on a claim of effectively connected income.
(i) In general.
(ii) Special rules for U.S. branches of foreign persons.
(A) U.S. branches of certain foreign banks or foreign insurance companies.
(B) Other U.S. branches.
(3) Income on notional principal contracts.
(i) General rule.
(ii) Exception for certain payments.
(iii) Exception for specified notional principal contracts.
(b) Compensation for personal services of an individual.
(1) Exemption from withholding.
(2) Manner of obtaining withholding exemption under tax treaty.
(i) In general.
(ii) Withholding certificate claiming withholding exemption.
(iii) Review by withholding agent.
(iv) Acceptance by withholding agent.
(v) Copies of Form 8233.
(3) Withholding agreements.
(4) Final payment exemption.
(i) General rule.
(ii) Final payment of compensation for personal services.
(iii) Manner of applying for final payment exemption.
(iv) Letter to withholding agent.
(5) Requirement of return.
(6) Personal exemption.
(i) In general.
(ii) Multiple exemptions.
(iii) Special rule where both certain scholarship and compensation income are received.
(c) Special rules for scholarship and fellowship income.
(1) In general.
(2) Alternate withholding election.
(d) Annuities received under qualified plans.
(e) Per diem of certain alien trainees.
(f) Failure to receive withholding certificates timely or to act in accordance with applicable presumptions.
(g) Effective/applicability date.
Sec. 1.1441-5 Withholding on payments to partnerships, trusts and estates.
(a) In general.
(b) Rules applicable to U.S. partnerships, trusts, and estates.
(1) Payments to U.S. partnerships, trusts, and estates.
(2) Withholding by U.S. payees.
(i) U.S. partnerships.
(A) In general.
(B) Effectively connected income of partners.
(ii) U.S. simple trusts.
(iii) U.S. complex trusts and U.S. estates.
(iv) U.S. grantor trusts
(v) Subsequent distribution
(vi) Coordination with chapter 4 requirements for U.S. partnerships, trusts, and estates.
(c) Foreign partnerships.
(1) Determination of payee.
(i) Payments treated as made to partners.
(ii) Payments treated as made to the partnership.
(iii) Rules for reliably associating a payment with documentation.
(iv) Coordination with chapter 4 for payments made to foreign partnerships.
(v) Examples.
(2) Withholding foreign partnerships.
(i) Reliance on claim of withholding foreign partnership status.
(ii) Withholding agreement.
(iii) Withholding responsibility.
(iv) Withholding certificate from a withholding foreign partnership.
(3) Nonwithholding foreign partnerships.
(i) Reliance on claim of foreign partnership status.
(ii) Reliance on claim of reduced withholding by a partnership for its partners.
(iii) Withholding certificate from a nonwithholding foreign partnership.
(iv) Withholding statement provided by nonwithholding foreign partnership and coordination with chapter 4.
(v) Withholding and reporting by a foreign partnership.
(d) Presumption rules.
(1) In general.
(2) Determination of partnership status as U.S. or foreign in the absence of documentation.
(3) Determination of partners' status in the absence of certain documentation.
(4) Determination by a withholding foreign partnership of the status of its partners.
(e) Foreign trusts and estates.
(1) In general.
(2) Payments to foreign complex trusts and foreign estates.
(3) Payees of payments to foreign simple trusts and foreign grantor trusts.
(i) Payments for which beneficiaries and owners are payees.
(ii) Payments for which trust is payee.
(iii) Coordination with chapter 4 for payments made to foreign simple trusts and foreign grantor trusts.
(4) Reliance on claim of foreign complex trust or foreign estate status.
(5) Foreign simple trust and foreign grantor trust.
(i) Reliance on claim of foreign simple trust or foreign grantor trust status.
(ii) Reliance on claim of reduced withholding by a foreign simple trust or foreign grantor trust for its beneficiaries or owners.
(iii) Withholding certificate from foreign simple trust or foreign grantor trust.
(iv) Withholding statement provided by foreign simple trust or foreign grantor trust and coordination with chapter 4.
(v) Withholding foreign trusts.
(6) Presumption rules
(i) In general
(ii) Determination of status as U.S. or foreign trust or estate in the absence of documentation.
(iii) Determination of beneficiary or owner's status in the absence of certain documentation.
(f) Failure to receive withholding certificate timely or to act in accordance with applicable presumptions.
(g) Effective/applicability date.
Sec. 1.1441-6 Claim of reduced withholding under an income tax treaty.
(a) In general.
(b) Reliance on claim of reduced withholding under an income tax treaty.
(1) In general.
(i) Identification of limitation on benefits provisions.
(ii) Reason to know based on existence of treaty.
(2) Payment to fiscally transparent entity.
(i) In general.
(ii) Certification by qualified intermediary.
(iii) Dual treatment.
(iv) Examples.
(3) Certified TIN.
(4) Claim of benefits under an income tax treaty by a U.S. person.
(c) Exemption from requirement to furnish a taxpayer identifying number and special documentary evidence rules for certain income.
(1) General rule.
(2) Income to which special rules apply.
(3) Certificate of residence.
(4) Documentary evidence establishing residence in the treaty country.
(i) Individuals.
(ii) Persons other than individuals.
(5) Statements regarding entitlement to treaty benefits.
(i) Statement regarding conditions under a limitation on benefits provision.
(ii) Statement regarding whether the taxpayer derives the income.
(d) Joint owners.
(e) Competent authority.
(f) Failure to receive withholding certificate timely.
(g) Special taxpayer identifying number rule for certain foreign individuals claiming treaty benefits.
(1) General rule.
(2) Special rule.
(3) Requirement that an ITIN be requested during the first business day following payment.
(4) Definition of unexpected payment.
(5) Examples.
(h) Dividend equivalents.
(i) Effective/applicability dates.
(1) General rule.
(2) Dividend equivalents.
Sec. 1.1441-7 General provisions relating to withholding agents.
(a) Withholding agent defined.
(1) In general.
(2) Withholding agent with respect to dividend equivalents.
(3) Examples.
(4) Effective/applicability date.
(b) Standards of knowledge.
(1) In general.
(2) Reason to know.
(3) Financial institutions -- limits on reason to know.
(i) In general.
(ii) Limits on reason to know for preexisting obligations.
(4) Rules applicable to withholding certificates.
(i) In general.
(ii) Examples.
(5) Withholding certificate -- establishment of foreign status.
(i) Classification of U.S. status, U.S. address, or U.S. telephone number.
(ii) U.S. place of birth.
(iii) Standing instructions with respect to offshore obligations.
(6) Withholding certificate -- claim of reduced rate of withholding under treaty.
(i) Permanent residence address.
(ii) Mailing address.
(iii) Standing instructions.
(7) Documentary evidence.
(8) Documentary evidence -- establishment of foreign status.
(i) Documentary evidence received prior to January 1, 2001.
(ii) Documentary evidence received after December 31, 2000.
(A) Treatment of individual’s foreign status.
(B) Presumption of entity’s foreign status.
(iii) U.S. place of birth.
(iv) Standing instructions with respect of offshore obligations.
(9) Documentary evidence -- claim of reduced rate of withholding under treaty.
(i) Permanent residence address and mailing address.
(ii) Standing instructions.
(10) Indirect account holders.
(11) Limits on reason to know for multiple obligations belonging to a single person.
(12) Reasonable explanation supporting claim of foreign status.
(13) Additional guidance.
(c) Agent.
(1) In general.
(2) Authorized agent.
(3) Liability of withholding agent acting through an agent.
(4) Liability of U.S. withholding agent.
(5) Filing of returns.
(d) United States obligations.
(e) Assumed obligations.
(f) Conduit financing arrangements.
(1) Liability of withholding agent.
(2) Exception for withholding agents that do not know of conduit financing arrangement.
(i) In general.
(ii) Examples.
(g) Effective/applicability date.
Sec. 1.1441-8 Exemption from withholding for payments to foreign governments, international organizations, foreign central banks of issue, and the Bank for International Settlements.
(a) Foreign governments.
(b) Reliance on claim of exemption by foreign government.
(c) Income of a foreign central bank of issue or the Bank for International Settlements.
(1) Certain interest income.
(2) Bankers' acceptances.
(d) Exemption for payments to international organizations.
(e) Failure to receive withholding certificate timely and other applicable procedures.
(f) Effective date.
(1) In general.
(2) Transition rules.
Sec. 1.1441-9 Exemption from withholding on exempt income of a foreign tax-exempt organization, including foreign private foundations
(a) Exemption from withholding for exempt income.
(b) Reliance on foreign organization's claim of exemption from withholding.
(1) General rule.
(2) Withholding certificate.
(3) Presumptions in the absence of documentation.
(4) Reason to know.
(c) Failure to receive withholding certificate timely and other applicable procedures.
(d) Effective date.
(1) In general.
(2) Transition rules.
Sec. 1.1441-10 Withholding agents with respect to fast-pay arrangements.
(a) In general.
(b) Exception.
(c) Liability.
(d) Examples.
(e) Effective date.
[T.D. 8734, 62 FR 53387-53498, Oct. 14, 1997, as amended by T.D. 8881, 65 FR 32151-32212, May 22, 2000; T.D. 9023, 67 FR 70310-70313, Nov. 22, 2002; T.D. 9272, 71 FR 43363-43366, Aug. 1, 2006; T.D. 9415, 73 FR 40171-40173, July 14, 2008; T.D. 9808, 82 FR 2046-2122, Jan. 6, 2017, corrected at 82 FR 29719-29728, June 30, 2017. Amended by T.D. 9890, 85 FR 192-206, Jan. 2, 2020.]
