[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: 26CFR502.6]

[Page 11-12]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 502--GREECE--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 502.6  Private pensions and life annuities.

    (a) General. Private pensions and life annuities, as defined in 
Article XI (3) and (4) of the convention, derived from sources within 
the United States on or after January 1, 1953, by a nonresident alien 
individual who is a resident of Greece are exempt from United States tax 
under the provisions of Article XI(2) of the convention. Such items of 
income are, therefore, not subject to the withholding of United States 
tax at source.
    (b) Application of exemption from withholding. (1) To avoid 
withholding of United States tax at source in the case of the items of 
income to which paragraph (a) of this section is applicable, the 
nonresident alien individual who is a resident of Greece shall notify 
the withholding agent by letter in duplicate that such income is exempt 
from United States tax under the provisions of Article XI of the 
convention. The letter of notification shall be signed by the owner of 
the income, shall show the name and address of both the payer and the 
owner of the income, and shall contain a statement that the owner, an 
individual, is neither a citizen nor a resident of the United States but 
is a resident of Greece.
    (2) If such letter is also to be used as authorization for the 
release, pursuant to Sec. 502.7(a), of excess tax withheld from such 
items of income, it shall also contain a statement that the owner was, 
at the time when the income was derived from which the excess tax was 
withheld, neither a citizen nor a resident of the United States but was 
a resident of Greece.
    (3) This letter shall constitute authorization for the payment of 
such items of income without withholding of United States tax at source 
unless the Commissioner of Internal Revenue subsequently notifies the 
withholding agent that the tax shall be withheld with respect to 
payments of such items of income made after receipt of such notice. If, 
after filing a letter of notification, the owner of the income ceases to 
be eligible for the exemption from United States tax granted by the 
convention in respect to such income, he shall promptly notify the 
withholding agent by letter in duplicate. When any change occurs in the 
ownership of such income as recorded on the books of the payer, the 
exemption from withholding of United States tax shall no longer apply 
unless the new owner of record is entitled to and does properly file a 
letter of notification with the withholding agent.

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    (4) Each letter of notification, or the duplicate thereof, shall be 
immediately forwarded by the withholding agent to the District Director 
of Internal Revenue, Audit Division, Alien Returns Section, Baltimore 2, 
Maryland.