[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: 26CFR516.3]

[Page 104-105]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 516--AUSTRIA--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 516.3  Dividends received by addressee not actual owner.

    (a) Additional tax to be withheld--(1) Nominee or representative. If 
the recipient in Austria of any dividend from which tax has been 
withheld at a reduced rate pursuant to Sec. 516.2(d)(2) is a

[[Page 105]]

nominee or representative through whom the dividend is received by a 
person other than one described in Sec. 516.2(b), such nominee or 
representative shall withhold an additional amount of United States tax 
equivalent to the United States tax which would have been withheld if 
the convention had not been in effect (30 percent as of the date of 
approval of Secs. 516.1 to 516.12) minus the amount which has been 
withheld at the source.
    (2) Fiduciary or partnership. If a fiduciary or a partnership with 
an address in Austria receives, otherwise than as a nominee or 
representative, a dividend from which United States tax has been 
withheld at a reduced rate pursuant to Sec. 516.2(d)(2), such fiduciary 
or partnership shall withhold an additional amount of United States tax 
from the portion of the dividend included in the gross income from 
sources within the United States of any beneficiary or partner, as the 
case may be, who is not entitled to the reduced rate of tax in 
accordance with Sec. 516.2(b). The amount of the additional tax is to be 
calculated in the same manner as under subparagraph (1) of this 
paragraph.
    (3) Released amounts of tax. If any amount of United States tax is 
released pursuant to Sec. 516.9(a)(2) by the withholding agent in the 
United States with respect to a dividend paid to such a person (nominee, 
representative, fiduciary, or partnership) with an address in Austria, 
the latter shall withhold from such released amount any additional 
amount of United States tax, otherwise required to be withheld from the 
dividend by the provisions of subparagraphs (1) and (2) of this 
paragraph, in the same manner as if at the time of payment of the 
dividend United States tax at the reduced rate prescribed by 
Sec. 516.2(d)(2) had been withheld at source from such dividend.
    (b) Returns filed by Austrian withholding agents. The amounts 
withheld pursuant to paragraph (a) of this section by any withholding 
agent in Austria shall be deposited, without converting the amounts into 
United States dollars, with the Austrian Federal Ministry of Finance on 
or before the 15th day after the close of the quarter of the calendar 
year in which the withholding in Austria occurs. The withholding agent 
making the deposit shall render therewith such appropriate Austrian form 
as may be prescribed by the Federal Ministry of Finance. The amounts so 
deposited should be remitted by the Federal Ministry of Finance by draft 
in United States dollars, on or before the end of the calendar month in 
which the deposit is made, to the Director of International Operations, 
Internal Revenue Service, Washington, D.C., U.S.A. The remittance should 
be accompanied by such Austrian forms as may be required to be rendered 
by the withholding agent in Austria in connection with the deposit.