{"identifier":"/us/usc/t26/s1473","title":26,"num":"\u00a7\u202f1473.","heading":"Definitions","text":"\u00a7\u202f1473.\nDefinitions\nFor purposes of this chapter\u2014\n(1)\nWithholdable payment\nExcept as otherwise provided by the Secretary\u2014\n(A)\nIn general\nThe term \u201cwithholdable payment\u201d means\u2014\n(i) any payment of interest (including any original issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States, and\n(ii) any gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States.\n(B)\nException for income connected with United States business\nSuch term shall not include any item of income which is taken into account under section 871(b)(1) or 882(a)(1) for the taxable year.\n(C)\nSpecial rule for sourcing interest paid by foreign branches of domestic financial institutions\nSubparagraph (B) of section 861(a)(1) shall not apply.\n(2)\nSubstantial United States owner\n(A)\nIn general\nThe term \u201csubstantial United States owner\u201d means\u2014\n(i) with respect to any corporation, any specified United States person which owns, directly or indirectly, more than 10 percent of the stock of such corporation (by vote or value),\n(ii) with respect to any partnership, any specified United States person which owns, directly or indirectly, more than 10 percent of the profits interests or capital interests in such partnership, and\n(iii) in the case of a trust\u2014\n(I) any specified United States person treated as an owner of any portion of such trust under subpart E of part I of subchapter J of chapter 1, and\n(II) to the extent provided by the Secretary in regulations or other guidance, any specified United States person which holds, directly or indirectly, more than 10 percent of the beneficial interests of such trust.\n(B)\nSpecial rule for investment vehicles\nIn the case of any financial institution described in section 1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph (A) shall be applied by substituting \u201c0 percent\u201d for \u201c10 percent\u201d.\n(3)\nSpecified United States person\nExcept as otherwise provided by the Secretary, the term \u201cspecified United States person\u201d means any United States person other than\u2014\n(A) any corporation the stock of which is regularly traded on an established securities market,\n(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 the stock of which is regularly traded on an established securities market,\n(C) any organization exempt from taxation under section 501(a) or an individual retirement plan,\n(D) the United States or any wholly owned agency or instrumentality thereof,\n(E) any State, the District of Columbia, any possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,\n(F) any bank (as defined in section 581),\n(G) any real estate investment trust (as defined in section 856),\n(H) any regulated investment company (as defined in section 851),\n(I) any common trust fund (as defined in section 584(a)), and\n(J) any trust which\u2014\n(i) is exempt from tax under section 664(c), or\n(ii) is described in section 4947(a)(1).\n(4)\nWithholding agent\nThe term \u201cwithholding agent\u201d means all persons, in whatever capacity acting, having the control, receipt, custody, disposal, or payment of any withholdable payment.\n(5)\nForeign entity\nThe term \u201cforeign entity\u201d means any entity which is not a United States person.","url":"https://projectusc.org/usc/t26/s1473.html","content":[{"t":"sec","id":"/us/usc/t26/s1473","children":[{"t":"num","text":"\u00a7\u202f1473."},{"t":"heading","text":"Definitions","tail":"\n"},{"t":"chapeau","text":"For purposes of this chapter\u2014"},{"t":"para","id":"/us/usc/t26/s1473/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Withholdable payment"},{"t":"chapeau","text":"Except as otherwise provided by the Secretary\u2014"},{"t":"subpara","id":"/us/usc/t26/s1473/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201cwithholdable payment\u201d means\u2014"},{"t":"clause","id":"/us/usc/t26/s1473/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" any payment of interest (including any original issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1473/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" any gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception for income connected with United States business"},{"t":"content","children":[{"t":"p","text":"Such term shall not include any item of income which is taken into account under section 871(b)(1) or 882(a)(1) for the taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Special rule for sourcing interest paid by foreign branches of domestic financial institutions"},{"t":"content","children":[{"t":"p","text":"Subparagraph (B) of section 861(a)(1) shall not apply.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1473/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Substantial United States owner"},{"t":"subpara","id":"/us/usc/t26/s1473/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201csubstantial United States owner\u201d means\u2014"},{"t":"clause","id":"/us/usc/t26/s1473/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" with respect to any corporation, any specified United States person which owns, directly or indirectly, more than 10 percent of the stock of such corporation (by vote or value),","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1473/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" with respect to any partnership, any specified United States person which owns, directly or indirectly, more than 10 percent of the profits interests or capital interests in such partnership, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1473/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"chapeau","text":" in the case of a trust\u2014"},{"t":"subclause","id":"/us/usc/t26/s1473/2/A/iii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" any specified United States person treated as an owner of any portion of such trust under subpart E of part I of subchapter J of chapter 1, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1473/2/A/iii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" to the extent provided by the Secretary in regulations or other guidance, any specified United States person which holds, directly or indirectly, more than 10 percent of the beneficial interests of such trust.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Special rule for investment vehicles"},{"t":"content","children":[{"t":"p","text":"In the case of any financial institution described in section 1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph (A) shall be applied by substituting \u201c0 percent\u201d for \u201c10 percent\u201d.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1473/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Specified United States person"},{"t":"chapeau","text":"Except as otherwise provided by the Secretary, the term \u201cspecified United States person\u201d means any United States person other than\u2014"},{"t":"subpara","id":"/us/usc/t26/s1473/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any corporation the stock of which is regularly traded on an established securities market,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 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 the stock of which is regularly traded on an established securities market,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" any organization exempt from taxation under section 501(a) or an individual retirement plan,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" the United States or any wholly owned agency or instrumentality thereof,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" any State, the District of Columbia, any possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/F","children":[{"t":"num","text":"(F)"},{"t":"content","text":" any bank (as defined in section 581),","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/G","children":[{"t":"num","text":"(G)"},{"t":"content","text":" any real estate investment trust (as defined in section 856),","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/H","children":[{"t":"num","text":"(H)"},{"t":"content","text":" any regulated investment company (as defined in section 851),","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" any common trust fund (as defined in section 584(a)), and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1473/3/J","children":[{"t":"num","text":"(J)"},{"t":"chapeau","text":" any trust which\u2014"},{"t":"clause","id":"/us/usc/t26/s1473/3/J/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is exempt from tax under section 664(c), or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1473/3/J/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is described in section 4947(a)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1473/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Withholding agent"},{"t":"content","children":[{"t":"p","text":"The term \u201cwithholding agent\u201d means all persons, in whatever capacity acting, having the control, receipt, custody, disposal, or payment of any withholdable payment.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1473/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Foreign entity"},{"t":"content","children":[{"t":"p","text":"The term \u201cforeign entity\u201d means any entity which is not a United States person.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}