Page:United States Statutes at Large Volume 98 Part 1.djvu/703

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 655

(d) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to payments made on or after the 60th day after the date of the enactment of this Act with respect to obligations issued after March 31, 1972. (2) SUBSECTION (C).—The amendment made by subsection (c) shall apply to obligations issued after June 9, 1984.

26 USC 871 note.

SEC. 129. WITHHOLDING OF TAX ON DISPOSITIONS OF UNITED STATES REAL PROPERTY INTERESTS. (a) WITHHOLDING OF TAX.—

(1) IN GENERAL.—Subchapter A of chapter 3 (relating to withholding of tax on nonresident aliens and foreign corporations) is amended by adding at the end thereof the following new section: "SEC. 1445. WITHHOLDING OF TAX ON DISPOSITIONS OF UNITED STATES REAL PROPERTY INTERESTS.

"(a) GENERAL RULE,—Except as otherwise provided in this section, in the case of any disposition of a United States real property interest (as defined in section 897(c)) by a foreign person, the transferee shall be required to deduct and withhold a tax equal to 10 percent of the amount realized on the disposition. "(b) EXEMPTIONS.—

"(1) IN GENERAL.—No person shall be required to deduct and withhold any amount under subsection (a) with respect to a disposition if paragraph (2), (3), (4), (5), or (6) applies to the transaction. "(2) TRANSFEROR FURNISHES NONFOREIGN AFFIDAVIT.—Except

as provided in paragraph (7), this paragraph applies to disposition if the transferor furnishes to the transferee affidavit by the transferor stating, under penalty of perjury, transferor's United States taxpayer identification number that the transferor is not a foreign person.

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"(3) NONPUBLICLY TRADED DOMESTICORPORATION FURNISHES AFFIDAVIT THAT IT IS NOT A UNITED STATES REAL PROPERTY HOLD-

ING CORPORATION.—Except as provided in paragraph (7), this paragraph applies in the case of a disposition of any interest in any domestic corporation, if the domestic corporation furnishes to the transferee an affidavit by the domestic corporation stating, under penalty of perjury, that the domestic corporation is not and has not been a United States real property holding corporation (as defined in section 897(c)(2)) during the applicable period specified in section 897(c)(l)(A)(ii). "(4) TRANSFEREE RECEIVES QUALIFYING STATEMENT.—

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"(A) IN GENERAL.—This paragraph applies to the disposition if the transferee receives a qualifying statement at such time, in such manner, and subject to such terms and conditions as the Secretary may by regulations prescribe. "(B) QUALIFYING STATEMENT.—For purposes of subparagraph (A), the term 'qualifying statement' means a statement by the Secretary that— "(i) the transferor either— "(I) has reached agreement with the Secretary (or such agreement has been reached by the transferee) for the payment of any tax imposed by section 871(b)(l) or 882(a)(l) on any gain recognized by

26 USC 1445.

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