[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: 26CFR514.28]
[Page 85-86]
TITLE 26--INTERNAL REVENUE
CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
(Continued)
PART 514--FRANCE--Table of Contents
Subpart--Withholding of Tax
Sec. 514.28 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Tax withheld from dividends--(i)
Dividends subject to 15-percent rate. If U.S. tax has been withheld on
or after August 11, 1968, at a rate in excess of 15 percent from
dividends described in Sec. 514.21(a)(3)(i) received by a nonresident
alien individual who is a resident of France or French corporation or
person resident in France for French tax purposes whose address at the
time of payment was in France, the withholding agent shall release and
par over to the person from whom the tax was withheld an amount which is
equal to the difference between the tax so withheld and the tax required
to be withheld pursuant to Sec. 514.21(b)(1).
(ii) Dividends subject to 5-percent rate. If U.S. tax has been
withheld at a rate in excess of 5 percent on or after August 11, 1968,
from dividends which qualify for the reduced rate of 5 percent under
Sec. 514.21(a)(3)(ii), the withholding agent shall, if so authorized in
accordance with Sec. 514.21(a)(3)(iv) release and pay over to the
corporation from which the tax was withheld an amount which is equal to
the difference between the tax so withheld and the tax required to be
withheld pursuant to Sec. 514.21(b)(2)(i).
(2) Tax withheld from coupon bond interest--(i) Substitute ownership
certificate. If U.S. tax has been withheld at a rate in excess of 10
percent on or after August 11, 1968, from coupon bond interest described
in Sec. 514.23(c)(1), the owner of the interest shall furnish the
withholding agent a Form 1001-F clearly marked ``Substitute'' and
executed in accordance with Sec. 514.23(c). Upon receipt of such
substitute Form 1001-F
[[Page 86]]
the withholding agent shall release and pay over to the person from whom
the tax was withheld an amount which is equal to the difference between
the tax so withheld and the tax required to be withheld pursuant to
Sec. 514.23(b)(1).
(ii) Filing and disposition of substitute ownership certificate. One
substitute Form 1001-F shall be filed in duplicate with respect to each
issue of bonds and will serve with respect to that issue to replace all
Forms 1001 or 1001-F previously filed by the owner of the interest in
the calendar year in which the excess tax was withheld and with respect
to which the excess is released. Such forms shall be disposed of in
accordance with the rules of Sec. 514.23(c)(1)(iii).
(3) Tax withheld from other income covered by convention. If the
owner of the other income furnishes to the withholding agent the letter
of notification prescribed in Sec. 514.24(a)(3) or (b)(4),
Sec. 514.25(b)(1), or the authorization for release of tax prescribed in
Sec. 514.26(a)(2), and U.S. tax has been withheld at a rate in excess of
the rate provided in the convention with respect to payments of income
to which such letter of authorization is applicable, made on or after
August 11, 1968, or received in the taxable year of the owner beginning
after December 31, 1966 (whichever is applicable), the withholding agent
shall release and pay to the person from whom the tax was withheld an
amount which is equal to the tax so withheld from such income, or to the
difference between the tax so withheld and the tax required to be
withheld, as the case may be.
(b) Amounts not to be released. The provisions of this section do
not apply to any excess tax withheld at the source subsequent to the due
date for filing Form 1042.
(c) Statutory rate. As used in this paragraph, the term ``statutory
rate'' means the rate of tax (30 percent as of the date of approval of
this Treasury decision) prescribed by subchapter A of chapter 3
(relating to the withholding of tax on nonresident alien individuals and
foreign corporations) of the Internal Revenue Code as though the
convention has not come into effect.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.28 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
By T.D. 8856, 64 FR 73408, Dec. 30, 1999, the effective date was delayed
until Jan. 1, 2001.