[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: 26CFR509.5]

[Page 30-31]
 
                       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. 509.5  Pensions and life annuities.

    Article XI(2) of the convention provides that private pensions and 
life annuities derived in taxable years beginning on or after January 1, 
1951, from sources within the United States by a nonresident alien 
individual who is a resident of Switzerland shall be exempt from United 
States tax.
    The person paying such income shall be notified by letter from the 
resident of Switzerland that the income is exempt from taxation under 
the provisions of Article XI (2) and (3) or XI (2) and (4), as the case 
may be, of the convention. Such letter shall contain the address of the 
individual and a statement that such individual is a resident of 
Switzerland. The letter of notification, or a copy thereof, shall be 
immediately forwarded by the recipient to

[[Page 31]]

the Commissioner of Internal Revenue, Records Division, Washington, D.C. 
Such letter shall constitute authorization to the payor of the income to 
pay such income without deduction of the tax at the source unless the 
Commissioner subsequently notifies such payor that the tax should be 
withheld with respect to payments made after such notification.