# 26 U.S.C. § 1472: Withholdable payments to other foreign entities Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 1472(a)(1). ## § 1472(a) In general In the case of any withholdable payment to a non-financial foreign entity, if— **§ 1472(a)(1)** the beneficial owner of such payment is such entity or any other non-financial foreign entity, and **§ 1472(a)(2)** the requirements of subsection (b) are not met with respect to such beneficial owner, then the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment. ## § 1472(b) Requirements for waiver of withholding The requirements of this subsection are met with respect to the beneficial owner of a payment if— **§ 1472(b)(1)** such beneficial owner or the payee provides the withholding agent with either— **§ 1472(b)(1)(A)** a certification that such beneficial owner does not have any substantial United States owners, or **§ 1472(b)(1)(B)** the name, address, and TIN of each substantial United States owner of such beneficial owner, **§ 1472(b)(2)** the withholding agent does not know, or have reason to know, that any information provided under paragraph (1) is incorrect, and **§ 1472(b)(3)** the withholding agent reports the information provided under paragraph (1)(B) to the Secretary in such manner as the Secretary may provide. ## § 1472(c) Exceptions Subsection (a) shall not apply to— **§ 1472(c)(1)** except as otherwise provided by the Secretary, any payment beneficially owned by— **§ 1472(c)(1)(A)** any corporation the stock of which is regularly traded on an established securities market, **§ 1472(c)(1)(B)** any corporation which is a member of the same expanded affiliated group (as defined in section 1471(e)(2) without regard to the last sentence thereof) as a corporation described in subparagraph (A), **§ 1472(c)(1)(C)** any entity which is organized under the laws of a possession of the United States and which is wholly owned by one or more bona fide residents (as defined in section 937(a)) of such possession, **§ 1472(c)(1)(D)** any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing, **§ 1472(c)(1)(E)** any international organization or any wholly owned agency or instrumentality thereof, **§ 1472(c)(1)(F)** any foreign central bank of issue, or **§ 1472(c)(1)(G)** any other class of persons identified by the Secretary for purposes of this subsection, and **§ 1472(c)(2)** any class of payments identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion. ## § 1472(d) Non-financial foreign entity For purposes of this section, the term “non-financial foreign entity” means any foreign entity which is not a financial institution (as defined in section 1471(d)(5)). ## Regulations - [Treas. Reg. § 1.1472-1](/26/reg/1.1472-1.md): Withholding on NFFEs. (interprets § 1472) ## Forms named in the regulations - [Form 8966](https://www.irs.gov/pub/irs-pdf/f8966.pdf) - [Form 8957](https://www.irs.gov/pub/irs-pdf/f8957.pdf) - [Form 1042](https://www.irs.gov/pub/irs-pdf/f1042.pdf) - [Form 1042-S](https://www.irs.gov/pub/irs-pdf/f1042s.pdf) ## Final rules - [84 FR 13121](https://www.federalregister.gov/documents/2019/04/04/C1-2019-05527/chapter-4-regulations-relating-to-verification-and-certification-requirements-for-certain-entities) (2019): Chapter 4 Regulations Relating to Verification and Certification Requirements for Certain Entities and Reporting by Foreign Financial Institutions - [84 FR 10976](https://www.federalregister.gov/documents/2019/03/25/2019-05527/chapter-4-regulations-relating-to-verification-and-certification-requirements-for-certain-entities) (2019): Chapter 4 Regulations Relating to Verification and Certification Requirements for Certain Entities and Reporting by Foreign Financial Institutions - [82 FR 2124](https://www.federalregister.gov/documents/2017/01/06/2016-31601/regulations-relating-to-information-reporting-by-foreign-financial-institutions-and-withholding-on) (2017): Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities - [79 FR 12812](https://www.federalregister.gov/documents/2014/03/06/2014-03967/regulations-relating-to-information-reporting-by-foreign-financial-institutions-and-withholding-on) (2014): Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities - [78 FR 5874](https://www.federalregister.gov/documents/2013/01/28/2013-01025/regulations-relating-to-information-reporting-by-foreign-financial-institutions-and-withholding-on) (2013): Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities ## Connections Cites: § 937 Residence and source rules involving possessions; § 1471 Withholdable payments to foreign financial institutions Cited by: none ## Amendments - 2010-03-18: [Pub. L. 111-147](/26/act/111-147.md), 124 Stat. 102