[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: 26CFR521.4]

[Page 139]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 521--DENMARK--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 521.4  Patent and copyright royalties and film rentals.

    (a) Royalties and other like amounts received on or after January 1, 
1948, by (1) a nonresident alien (including a nonresident alien 
individual, fiduciary, and partnership) who is a resident of Denmark or 
(2) a Danish corporation, as consideration for the right to use 
copyrights, patents, designs, secret processes and formulae, trademarks, 
and other like property, including rentals and like payments in respect 
of motion picture films, are exempt from United States tax under the 
provisions of Article VIII of the convention if such alien or 
corporation had at no time during the taxable year in which such royalty 
or other amount was so received a permanent establishment in the United 
States. Such items are, therefore, not subject to the withholding 
provisions of the Internal Revenue Code. As to what constitutes a 
permanent establishment, see Article II(1)(c) of the convention.
    (b) To obviate withholding at the source, the nonresident alien who 
is a resident of Denmark, or the Danish corporation shall file Form 
1001A-D, in duplicate, with the withholding agent in the United States. 
Such form shall be signed by the owner of the income, trustee or agent 
and shall contain the statements provided on such form with respect to 
interest as set forth in Sec. 521.3, the provisions of which with 
respect to the effective period of such form are equally applicable with 
respect to the income falling within the scope of this section. The 
duplicate copy of Form 1001A-D should be immediately forwarded by the 
withholding agent to the Commissioner of Internal Revenue, Records 
Division, Washington 25, D.C.