[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR509.8]

[Page 32]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 509--SWITZERLAND--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 509.8  Addressee not actual owner.

    If the first recipient with an address in Switzerland of any 
dividend from sources within the United States is a nominee or 
representative through whom the dividend flows to a third person, such 
recipient in Switzerland will withhold an additional amount of United 
States tax equivalent to the difference between the United States tax 
which would have been withheld had the convention not been in effect (30 
percent as at the date of approval of this Treasury decision) and the 15 
percent withheld at the source with respect to such dividend pursuant to 
Sec. 509.2(d).
    In any case in which a fiduciary or a partnership with an address in 
Switzerland receives, otherwise than as a nominee or representative, a 
dividend from United States sources, if a beneficiary of such fiduciary 
or a partner in such partnership is not entitled to the reduced rate of 
tax provided in Article VI of the convention, the fiduciary or 
partnership will withhold an additional amount of United States tax with 
respect to the portion of such dividend included in such beneficiary's 
or partner's net distributive share of the income of such fiduciary or 
partnership, as the case may be. The amount of the additional tax is to 
be calculated in the same manner as under the preceding paragraph.
    The amounts so withheld by such withholding agents in Switzerland, 
as well as the amount of tax released with respect to the calendar year 
1951 by the withholding agent in the United States in the case of a 
dividend flowing to a third person through a nominee or representative 
whose address is in Switzerland, will be deposited by such agents in 
Swiss francs with the Federal Tax Administration, Berne, Switzerland, 
Account: ``Zusatzlicher Steuerruckbehalt USA'' (``Additional tax 
withholdings USA''); and the appropriate Swiss form will be filed 
therewith. The Federal Tax Administration has arranged that the amounts 
so deposited will, after adjustment for tax refunded to persons entitled 
to the reduced rate of 15 percent, be periodically remitted by draft in 
United States dollars to the Collector of Internal Revenue, Baltimore, 
Maryland, U.S.A.