[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.103-6]

[Page 372]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.103-6  Interest upon United States obligations in the case of 

nonresident aliens and foreign corporations, not engaged in business 
in the United States.

    By virtue of section 4 of the Victory Liberty Loan Act of March 3, 
1919 (31 U.S.C. 750), amending section 3 of the Fourth Liberty Bond Act 
of July 9, 1918 (31 U.S.C. 750), the interest received on and after 
March 3, 1919, on bonds, notes, and certificates of indebtedness of the 
United States while beneficially owned by a nonresident alien 
individual, or a foreign corporation, partnership, or association, if 
such individual, corporation, partnership, or association is not engaged 
in business in the United States, is exempt from income taxes. Such 
exemption applies only to such bonds, notes, or certificates as have 
been issued before March 1, 1941. Interest derived by a nonresident 
alien individual, or by a foreign corporation, partnership, or 
association on such bonds, notes, or certificates issued on or after 
March 1, 1941, is subject to tax as in the case of taxpayers generally 
as provided in paragraph (b) of Sec. 1.103-4.