Sec.
1442. Withholding of
tax on foreign corporations
26
U.S.C. § 1442
(a)
General rule
In
the case of foreign
corporations subject
to taxation under this
subtitle, there shall
be deducted and withheld
at the source in the
same manner and on
the same items of income
as is provided in section
1441 a tax equal to
30 percent thereof.
For purposes of the
preceding sentence,
the references in section
1441(b) to sections
871(a)(1)(C) and (D)
shall be treated as
referring to sections
881(a)(3) and (4),
the reference in section
1441(c)(1) to section
871(b)(2) shall be
treated as referring
to section 842 or section
882(a)(2), as the case
may be, the reference
in section 1441(c)(5)
to section 871(a)(1)(D)
shall be treated as
referring to section
881(a)(4), the reference
in section 1441(c)(8)
to section 871(a)(1)(C)
shall be treated as
referring to section
881(a)(3), the references
in section 1441(c)(9)
to sections 871(h)
and 871(h)(3) or (4)
shall be treated as
referring to sections
881(c) and 881(c)(3)
or (4), and the reference
in section 1441(c)(10)
to section 871(i)(2)
shall be treated as
referring to section 881(d).
(b)
Exemption
Subject
to such terms and conditions
as may be provided
by regulations prescribed
by the Secretary, subsection
(a) shall not apply
in the case of a foreign
corporation engaged
in trade or business
within the United States
if the Secretary determines
that the requirements
of subsection (a) impose
an undue administrative
burden and that the
collection of the tax
imposed by section
881 on such corporation
will not be jeopardized
by the exemption.
(c)
Exception for certain
possessions corporations
For
purposes of this section,
the term "foreign corporation" does not include a corporation created or organized in Guam, American Samoa,
the Northern Mariana
Islands, or the Virgin
Islands or under the
law of any such possession
if the requirements
of subparagraphs (A),
(B), and (C) of section
881(b)(1) are met with
respect to such corporation.
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