[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: 26CFR516.9]
[Page 109-110]
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. 516.9 Release of excess tax withheld at source.
(a) Amounts to be released--(1) Dividends and interest paid by
Austrian corporation. If United States tax at the statutory rate has
been withheld on or after January 1, 1958, from dividends and interest
paid by an Austrian corporation (other than a United States corporation)
to a recipient who is a nonresident alien or a foreign corporation, the
withholding agent shall release and pay over to the person from whom the
tax was withheld an amount which is equal to the tax so withheld.
(2) Dividends subject to 50 percent of statutory rate. If United
States tax at the statutory rate has been withheld on or after January
1, 1958, from dividends described in Sec. 516.2(b) and received from
sources within the United States by a nonresident alien (including a
nonresident alien individual, fiduciary, and partnership) or by a
foreign corporation or other entity, whose address at the time of
payment was in Austria, 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. 516.2(d)(2).
(3) Dividends subject to 5 percent rate. If United States tax at the
statutory rate has been withheld on or after January 1, 1958, from
dividends which qualify under Sec. 516.2(c)(1) for a rate of tax not in
excess of 5 percent, the withholding agent shall, if so authorized in
accordance with Sec. 516.2(c)(3), 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. 516.2(d)(3).
(4) Coupon bond interest--(i) Substitute form. In the case of every
taxpayer who furnishes to the withholding agent Form 1001-A clearly
marked ``Substitute'' and executed in accordance with
Sec. 516.4(d)(1)(i), where United States tax has been withheld at the
statutory rate on or after January 1, 1958, from coupon bond interest
exempt under Sec. 516.4(b), the withholding agent shall release and pay
over to the person from whom the tax was withheld an amount which is
equal to the tax so withheld, if the taxpayer also attaches to such form
a letter in duplicate, signed by the owner, or by his trustee or agent,
and containing the following:
(a) The name and the address of the obligor;
(b) The name and the address of the owner of the interest from which
the excess tax was withheld;
[[Page 110]]
(c) A statement that, at the time when the interest was received
from which the excess tax was withheld, the owner was neither a citizen
nor a resident of the United States but was a resident of Austria, or,
in the case of a corporation or other entity, the owner was an Austrian
corporation or other entity; and
(d) A statement that the owner at no time during the taxable year in
which the interest was received had a permanent establishment in the
United States. One such substitute form 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 previously filed by the taxpayer in the
calendar year in which the excess tax was withheld and with respect to
which such excess is released.
(ii) Disposition of form. The original and duplicate of substitute
Form 1001-A (and letter) shall be forwarded by the withholding agent to
the Director of International Operations, Internal Revenue Service,
Washington, D.C., in accordance with Sec. 1.1461-2(b) of this chapter.
(5) Interest on noncoupon bonds, royalties, pensions, and annuities.
If a taxpayer furnishes to the withholding agent the authorization of
release prescribed in Sec. 516.4(d)(2)(ii), Sec. 516.5(a)(2)(ii), or
Sec. 516.6(b)(2) and United States tax has been withheld at the
statutory rate on or after January 1, 1958, from the interest, copyright
royalties or other like amounts, pensions, or annuities in respect to
which such authorization is prescribed, the withholding agent shall
release and pay over to the person from whom the tax was withheld an
amount which is equal to the tax so withheld.
(6) Motion picture film rentals. If a taxpayer furnishes to the
withholding agent the authorization of release prescribed in
Sec. 516.5(b)(2)(ii) and United States tax has been withheld at the
statutory rate on or after January 1, 1958, from the motion picture film
rentals in respect to which such authorization is prescribed, 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. 516.5(b)(2)(i).
(b) Amounts not to be released. The provisions of this section do
not apply to excess tax withheld at source which has been paid by the
withholding agent to the Director of International Operations.
(c) Statutory rate. As used in this section, the term ``statutory
rate'' means the rate prescribed by chapter 3 of the Internal Revenue
Code of 1954 as though the convention had not come into effect.
(d) Amounts withheld during 1957. For provisions respecting the
refund of excess tax withheld during the calendar year 1957, see
Sec. 516.10.