Page:United States Statutes at Large Volume 68A.djvu/398

 358

INTERNAL REVENUE CODE OF 1954 (2) OWNER

UNKNOWN.—The Secretary or his delegate

may

authorize the tax under subsection (a) to be deducted and withheld from the interest upon any securities the owners of which are not known to the withholding agent. (3) BONDS WITH EXTENDED MATURITY DATES.—The deduction

and withholding in the case of interest on bonds, mortgages, or deeds of trust or other similar obligations of a corporation, within subsections (a), (b), and (c) of section 1451 were it not for the fact that the maturity date of such obligations has been extended on or after January 1, 1934, and the liability assumed by the debtor exceeds 27}^ percent of the interest, shall not exceed the rate of 27K percent per annum. (4) COMPENSATION OF CERTAIN ALIENS.—Under regulations prescribed by the Secretary or his delegate, there may be exempted from deduction and withholding under subsection (a) the compensation for personal services of nonresident alien individuals who enter and leave the United States at frequent intervals. (5) SPECIAL ITEMS.—In the case of amounts described in section 402 (a)(2), section 631(b) and (c), and section 1235, which are considered to be gains from the sale or exchange of capital assets, the amount required to be deducted and withheld shall, if the amount of such gain is not known to the withholding agent, be such amount, not exceeding 30 percent of the proceeds from such, sale or exchange, as may be necessary to assure that the tax deducted and withheld shall not be less than 30 percent of such gain. (d) A L I E N RESIDENT OF PUERTO R I C O. — For purposes of this section, the term "nonresident alien individual" includes an alien resident of Puerto Rico. SEC. 1442. WITHHOLDING

OF TAX ON FOREIGN

CORPORATIONS.

I n the case of foreign corporations subject to taxation under this subtitle not engaged in trade or business within the United States, there shall be deducted and withheld at the source in the same manner and on the same items of income as is provided in section 1441 or section 1451 a tax equal to 30 percent thereof; except that, in the case of interest described in section 1451 (relating to tax-free covenant bonds), the deduction and withholding shall be at the rate specified therein, SEC. 1443. FOREIGN TAX-EXEMPT

ORGANIZATIONS.

I n the case of income of a foreign organization subject to the tax imposed by section 511, this chapter shall apply to rents includible under section 512 in computing its unrelated business taxable income, but only to the extent and subject to such conditions as may be provided under regulations prescribed by the Secretary or his delegate.

§ 1441(c)(2)

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