See paragraph (e)(5)(iv) of this section (which requires that a qualified intermediary who assumes responsibility for the primary source in accordance with Chapter 3 assume responsibility for the primary source in accordance with Chapter 4). See also paragraph (e)(5)(v)(C)(3) of this section for alternative methods of allocating payments to U.S. persons who are not exempt recipients, and subsection (e)(5)(v)(C)(1) and (2) of this Section, where a qualified intermediary may provide a withholding agent with a pool of withholding rates under Chapter 4 of U.S. beneficiaries instead of documents relating to each U.S. beneficiary not exempt. (xxiii) amounts paid in respect of a potential transaction under paragraph 871(m) that is only a transaction referred to in paragraph 871(m) as a result of the application of paragraph 1.871-15(n) to the treatment of certain transactions as combined transactions where the detaining officer may invoke one or more of the presumptions set out in paragraph 1.871-15(n)(3)(i) or (ii) (application of these subsections, whether or not the detainer is a short-term party by replacing “detainer” with “short party”), and the detainer otherwise has no actual knowledge that the long party (or any related person within the meaning of section 267(b) or section 707(b)) has entered into the potential section 871(m) transaction in relation to other potential transactions under section 871(m). The ability of one or more withholding taxpayers to avail themselves of the presumptions set out in article 1.871-15(n)(3) does not affect the withholding tax obligations or liability of a party to the transaction that cannot avail itself of the presumptions. Notwithstanding the exemption from withholding tax granted to the withholding agent in this paragraph (b)(4)(xxii), the long party may still be liable for tax on amounts equivalent to dividends in connection with such combined transactions under Article 871(m). (C) Consequences for the U.S. subsidiary.
A U.S. branch that is treated as a U.S. person under subsection (b) (2) (iv) (A) of this Section will be treated as a separate person for the purposes of Section 1441(a) and all other provisions of Chapters 3 and 4 of the Code and the provisions contained therein (except to report payment to the U.S. branch in accordance with Section 1.1461-1(c) and Section 1.1474-1(d)(1)(i) for an amount reportable under Chapter 4 by B. to refuse) or for the purposes of documentation must be provided by that branch in accordance with paragraph (e)(3)(v) of this Section) for each payment it receives as such. Therefore, the U.S. branch is responsible for withholding a payment as a U.S. branch.
Person in accordance with the provisions of Chapters 3 and 4 of the Code and the provisions contained therein and other applicable source provisions of the Code. To that end, it obtains from the beneficiaries or beneficial owners records of the payments it receives as an intermediary as a person from the United States in the same way and retains them as if it were a separate entity. For example, if a U.S. branch receives payment as an intermediary on behalf of customers in its home office and the home office is a qualified agent, the U.S. branch must obtain a certificate of qualified intermediary in accordance with paragraph (e)(3)(ii) of this Article from its head office. If a U.S. branch of an IFF that is treated as a U.S. person receives a payment on behalf of another branch of the IFF that is treated as a non-participating IFF, the U.S. branch must withhold the payment made to the other branch as if it were a separate person to the extent required by Chapter 4. In addition, a U.S.
branch that has not provided the withholding agent with documents for a payment that is not actually related to income is a withholding agent in respect of that payment. See paragraph b) (6) of this section and § 1.1441-4(a)(2)(ii). (3) As a payment to a foreign person with income actually associated with carrying on a business or business activity in the United States, if the tourniquet has received an EIN for the branch and cannot reliably associate the payment with a source certificate from a U.S. branch (or another appropriate certificate or other document from another person). See § 1.1441-4(a)(2)(ii); or PLEASE NOTE: Section 1031 of the IRC on Exchanges describes an independent type of “qualified intermediary”. (13) Intermediaries. An intermediary means, in respect of a payment it receives, a person who acts as a custodian, broker, nominee or agent for another person for that payment, whether that other person is the beneficial owner of the amount paid, a flow-through unit or another intermediary. (8) Adjustments, repayments or credits of over-paid amounts. If the amount withheld under sections 1441, 1442 or 1443 is greater than the tax payable by the withholding agent or taxpayer, adjustments may be made in accordance with the procedures described in section 1.1461-2(a).
Alternatively, refunds or credits may be described in accordance with the procedures described in § 1.1464-1 in respect of refunds or credits claimed by the beneficial owner or § 1.6414-1 in respect of refunds or credits claimed by the retainer. If an amount has been withheld under section 3406 or is subsequently determined to have been paid to a foreign person, see paragraph (b)(3)(vii) of this section and section 31.6413(a) – 3(a)(1) of this chapter. (9) Payments to co-owners. A payment to co-owners that requires documents to reduce the withholding rate in accordance with Chapter 3 of the Code and the provisions contained therein does not entitle you to such a reduced rate, unless the withholding agent can reliably link the payment to each owner`s records. Notwithstanding the preceding sentence, a payment to co-owners will be considered a waiver of withholding under this Section if one of the owners submits a U.S. Certificate of Status on Form W-9 in accordance with subsection (d) (2) or (3) of this Section, or if the retainer can link the payment to an intermediate or flow-through withholding certificate on which it can rely; treat the payment as being made to an American. beneficiary referred to in point (d)(4) of this Section. See § 31.3406(h)-2(a)(3)(i)(B) of this chapter. (ix) Certain income related to remuneration for a person`s personal services provided in the United States is exempt from withholding tax under Section 1441(a). See Article 1441(c)(4) and §1.1441-4(b).
However, such income may be withheld as salary in accordance with section 3402. Documents proving the status of an alien must be presented for the purpose of exempting or reducing withholding tax to the extent required by § 1.1441-4(b) or 31.3401(a)(6)-1(e) and (f) of this chapter. The documents provided for this purpose also serve as documentation to determine the external status for the purposes of providing information in accordance with § 6041. See § 1.6041-4(a)(1). (B) beneficial ownership documents or attribution information are missing or unreliable. Except as otherwise provided in subparagraph (b) (3) (v) (B) of this paragraph, it is presumed that any part of a payment that the detaining agent may treat as being to a foreign intermediary (whether an unqualified intermediary or a qualified intermediary) but that the detaining agent cannot consider to be reliable with valid documents within the meaning of subparagraph (b)(2)(vii) of this Article, is paid to an unknown person. undocumented foreign beneficiary. . . .