# § 1441. Withholding of tax on nonresident aliens
**(a)** **General rule** Except as otherwise provided in subsection (c), all persons, in whatever capacity acting (including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of the United States) having the control, receipt, custody, disposal, or payment of any of the items of income specified in subsection (b) (to the extent that any of such items constitutes gross income from sources within the United States), of any nonresident alien individual or of any foreign partnership shall (except as otherwise provided in regulations prescribed by the Secretary under section 874) deduct and withhold from such items a tax equal to 30 percent thereof, except that in the case of any item of income specified in the second sentence of subsection (b), the tax shall be equal to 14 percent of such item.
**(b)** **Income items** The items of income referred to in subsection (a) are interest (other than original issue discount as defined in section 1273), dividends, rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income, gains described in section 631(b) or (c), amounts subject to tax under section 871(a)(1)(C), and gains subject to tax under section 871(a)(1)(D). The items of income referred to in subsection (a) from which tax shall be deducted and withheld at the rate of 14 percent are amounts which are received by a nonresident alien individual who is temporarily present in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act and which are—
**(1)** incident to a qualified scholarship to which section 117(a) applies, but only to the extent includible in gross income; or
**(2)** in the case of an individual who is not a candidate for a degree at an educational organization described in section 170(b)(1)(A)(ii), granted by—
as a scholarship or fellowship for study, training, or research in the United States. In the case of a nonresident alien individual who is a member of a domestic partnership, the items of income referred to in subsection (a) shall be treated as referring to items specified in this subsection included in his distributive share of the income of such partnership.
**(A)** an organization described in section 501(c)(3) which is exempt from tax under section 501(a),
**(B)** a foreign government,
**(C)** an international organization, or a binational or multinational educational and cultural foundation or commission created or continued pursuant to the Mutual Educational and Cultural Exchange Act of 1961, or
**(D)** the United States, or an instrumentality or agency thereof, or a State, or a possession of the United States, or any political subdivision thereof, or the District of Columbia,
**(c)** **Exceptions**
**(1)** **Income connected with United States business** No deduction or withholding under subsection (a) shall be required in the case of any item of income (other than compensation for personal services) which is effectively connected with the conduct of a trade or business within the United States and which is included in the gross income of the recipient under section 871(b)(2) for the taxable year.
**(2)** **Owner unknown** The Secretary 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** January 1, 1934
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 (as in effect before its repeal by the Tax Reform Act of 1984) were it not for the fact that the maturity date of such obligations has been extended on or after , and the liability assumed by the debtor exceeds 27½ percent of the interest, shall not exceed the rate of 27½ percent per annum.
**(4)** **Compensation of certain aliens** Under regulations prescribed by the Secretary, compensation for personal services may be exempted from deduction and withholding under subsection (a).
**(5)** **Special items** In the case of gains described in section 631(b) or (c), and gains subject to tax under section 871(a)(1)(D), 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 amount payable, as may be necessary to assure that the tax deducted and withheld shall not be less than 30 percent of such gain.
**(6)** **Per diem of certain aliens** No deduction or withholding under subsection (a) shall be required in the case of amounts of per diem for subsistence paid by the United States Government (directly or by contract) to any nonresident alien individual who is engaged in any program of training in the United States under the Mutual Security Act of 1954, as amended.
**(7)** **Certain annuities received under qualified plans** No deduction or withholding under subsection (a) shall be required in the case of any amount received as an annuity if such amount is, under section 871(f), exempt from the tax imposed by section 871(a).
**(8)** **Original issue discount** The Secretary may prescribe such regulations as may be necessary for the deduction and withholding of the tax on original issue discount subject to tax under section 871(a)(1)(C) including rules for the deduction and withholding of the tax on original issue discount from payments of interest.
**(9)** **Interest income from certain portfolio debt investments** In the case of portfolio interest (within the meaning of section 871(h)), no tax shall be required to be deducted and withheld from such interest unless the person required to deduct and withhold tax from such interest knows, or has reason to know, that such interest is not portfolio interest by reason of section 871(h)(3) or (4).
**(10)** **Exception for certain interest and dividends** No tax shall be required to be deducted and withheld under subsection (a) from any amount described in section 871(i)(2).
**(11)** **Certain gambling winnings** No tax shall be required to be deducted and withheld under subsection (a) from any amount exempt from the tax imposed by section 871(a)(1)(A) by reason of section 871(j).
**(12)** **Certain dividends received from regulated investment companies**
**(A)** **In general** No tax shall be required to be deducted and withheld under subsection (a) from any amount exempt from the tax imposed by section 871(a)(1)(A) by reason of section 871(k).
**(B)** **Special rule** For purposes of subparagraph (A), clause (i) of section 871(k)(1)(B) shall not apply to any dividend unless the regulated investment company knows that such dividend is a dividend referred to in such clause. A similar rule shall apply with respect to the exception contained in section 871(k)(2)(B).
**(d)** **Exemption of certain foreign partnerships** Subject to such terms and conditions as may be provided by regulations prescribed by the Secretary, subsection (a) shall not apply in the case of a foreign partnership engaged in trade or business within the United States if the Secretary determines that the requirements of subsection (a) impose an undue administrative burden and that the collection of the tax imposed by section 871(a) on the members of such partnership who are nonresident alien individuals will not be jeopardized by the exemption.
**(e)** **Alien resident of Puerto Rico** For purposes of this section, the term “nonresident alien individual” includes an alien resident of Puerto Rico.
**(f)** **Continental shelf areas** For sources of income derived from, or for services performed with respect to, the exploration or exploitation of natural resources on submarine areas adjacent to the territorial waters of the United States, see section 638.
**(g)** **Cross reference** For provision treating 85 percent of social security benefits as subject to withholding under this section, see section 871(a)(3).
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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 357; Aug. 26, 1954, ch. 937, title V, § 544(f), as added July 18, 1956, ch. 627, § 11(a), 70 Stat. 563; amended Pub. L. 85–141, § 11(b)(1), Aug. 14, 1957, 71 Stat. 365; Pub. L. 85–866, title I, § 40(b), Sept. 2, 1958, 72 Stat. 1638; Pub. L. 87–256, § 110(d), Sept. 21, 1961, 75 Stat. 536; Pub. L. 88–272, title III, § 302(c), Feb. 26, 1964, 78 Stat. 146; Pub. L. 89–809, title I, § 103(h), Nov. 13, 1966, 80 Stat. 1553; Pub. L. 91–172, title V, § 505(b), Dec. 30, 1969, 83 Stat. 634; Pub. L. 92–178, title III, § 313(a), (d), Dec. 10, 1971, 85 Stat. 526, 527; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–21, title I, § 121(c)(2), Apr. 20, 1983, 97 Stat. 82; Pub. L. 98–369, div. A, title I, §§ 42(a)(13), 127(e)(1), title IV, § 474(r)(29)(G), (H), July 18, 1984, 98 Stat. 557, 652, 845; Pub. L. 99–514, title I, § 123(b)(2), title XII, § 1214(c)(3), title XVIII, § 1810(d)(3)(D), Oct. 22, 1986, 100 Stat. 2113, 2542, 2825; Pub. L. 100–647, title I, § 1001(d)(2)(A), title VI, § 6134(a)(2), Nov. 10, 1988, 102 Stat. 3350, 3721; Pub. L. 101–508, title XI, § 11704(a)(14), Nov. 5, 1990, 104 Stat. 1388–518; Pub. L. 102–318, title V, § 521(b)(32), (33), July 3, 1992, 106 Stat. 312; Pub. L. 103–66, title XIII, § 13237(c)(4), Aug. 10, 1993, 107 Stat. 508; Pub. L. 103–296, title III, § 320(a)(1)(B), Aug. 15, 1994, 108 Stat. 1535; Pub. L. 105–34, title XVI, § 1604(g)(3), Aug. 5, 1997, 111 Stat. 1099; Pub. L. 108–357, title IV, § 411(a)(3)(A), Oct. 22, 2004, 118 Stat. 1503; Pub. L. 113–295, div. A, title II, § 221(a)(92), Dec. 19, 2014, 128 Stat. 4050.)
## Editorial Notes
### References in Text
Section 101(a)(15) of the Immigration and Nationality Act, referred to in subsec. (b), is classified to , Aliens and Nationality.
The Mutual Educational and Cultural Exchange Act of 1961, referred to in subsec. (b)(2)(C), is , , , which is classified principally to chapter 33 (§ 2451 et seq.) of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
The Tax Reform Act of 1984, referred to in subsec. (c)(3), is division A [§§ 5 to 1082] of , , , which was approved . For complete classification of this Act to the Code, see Short Title of 1984 Amendments note set out under and Tables.
The Mutual Security Act of 1954, referred to in subsec. (c)(6), is , , as amended by acts , ; , §§ 2 to 11, ; , , ; , , ch. 1, §§ 101 to 103, ch. II, §§ 201 to 205, ch. III, § 301, ch. IV, § 401, ch. V, § 501, ; , , ch. 1, § 101, ch. II, §§ 201 to 205(a) to (i), (k) to (n), ch. III, § 301, ch. IV, § 401(a) to (k), (m), ; , , ch. I to V, , which was principally classified to chapter 24 (§ 1750 et seq.) of Title 22, Foreign Relations and Intercourse, and which was repealed by , , , §§ 2(e), 3, 4(b), 11(d), , , , ch. II, §§ 205(j), ch. IV, 401(1), , , , ch. II, §§ 203(d), 204(k), , , , pt. III, § 642(a)(2), , , , , 90 Stat 745, except for sections 1754, 1783, 1796, 1853, 1922, 1928, and 1937 of Title 22. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
### Amendments
2014—Subsecs. (b), (c)(5). substituted “and gains subject to tax under section 871(a)(1)(D)” for “gains subject to tax under section 871(a)(1)(D), and gains on transfers described in section 1235 made on or before ”.
2004—Subsec. (c)(12). added par. (12).
1997—Subsec. (g). substituted “85 percent” for “one-half”.
1994—Subsec. (b). substituted “(J), (M), or (Q)” for “(J), or (M)”.
1993—Subsec. (c)(9). substituted “section 871(h)(3) or (4)” for “section 871(h)(3)”.
1992—Subsecs. (b), (c)(5). struck out “402(a)(2), 403(a)(2), or” before “631(b)”.
1990—Subsec. (b)(2). inserted “section” before “170(b)(1)(A)(ii)”.
1988—Subsec. (b). , amended second sentence generally. Prior to amendment, second sentence read as follows: “The items of income referred to in subsection (a) from which tax shall be deducted and withheld at the rate of 14 percent are amounts which are received by a nonresident alien individual who is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101(a)(15) of the Immigration and Nationality Act and which are incident to a qualified scholarship to which section 117(a) applies, but only to the extent such amounts are includible in gross income.”
Subsec. (c)(11). , added par. (11).
1986—Subsec. (b). , amended second sentence generally. Prior to amendment, second sentence read as follows: “The items of income referred to in subsection (a) from which tax shall be deducted and withheld at the rate of 14 percent are—
“(1) that portion of any scholarship or fellowship grant which is received by a nonresident alien individual who is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101(a)(15) of the Immigration and Nationality Act, as amended, and which is not excluded from gross income under section 117(a)(1) solely by reason of section 117(b)(2)(B); and
“(2) amounts described in subparagraphs (A), (B), (C), and (D) of section 117(a)(2) which are received by any such nonresident alien individual and which are incident to a scholarship or fellowship grant to which section 117(a)(1) applies, but only to the extent such amounts are includable in gross income.”
Subsec. (c)(9). , substituted “section 871(h)” for “871(h)(2)”.
Subsec. (c)(10). , added par. (10).
1984—Subsec. (a). , struck out “except in the cases provided for in section 1451 and” before “except as otherwise provided in regulations”.
Subsec. (b). , substituted “section 1273” for “section 1232(b)”.
Subsec. (c)(3). , inserted “(as in effect before its repeal by the Tax Reform Act of 1984)”.
Subsec. (c)(9). , added par. (9).
1983—Subsec. (g). added subsec. (g).
1976— struck out in subsecs. (a), (c)(2), (4), (8), (d), “or his delegate” after “Secretary”.
1971—Subsec. (b). , inserted “(other than original issue discount as defined in section 1232(b))” after “interest”.
Subsec. (c)(8). , added par. (8).
1969—Subsec. (f). added subsec. (f).
1966—Subsec. (a). , substituted “or of any foreign partnership” for “, or of any partnership not engaged in trade or business within the United States and composed in whole or in part of nonresident aliens,”.
Subsec. (b). –(4), struck out “(except interest on deposits with persons carrying on the banking business paid to persons not engaged in business in the United States)” after “The items of income referred to in subsection (a) are interest” and substituted “gains described in section 402(a)(2), 403(a)(2), or 631(b) or (c), amounts subject to tax under section 871(a)(1)(C), gains subject to tax under section 871(a)(1)(D), and gains on transfers described in section 1235 made on or before ” for “and amounts described in section 402(a)(2), section 403(a)(2), section 631(b) and (c), and section 1235, which are considered to be gains from the sale or exchange of capital assets” in text preceding par. (1), and inserted provision for treatment of items of income referred to in subsec. (a) in the case of nonresident alien individuals who are members of domestic partnerships.
Subsec. (c)(1). , substituted “in the case of any item of income (other than compensation for personal services) which is effectively connected with the conduct of a trade or business within the United States and which is included in the gross income of the recipient under section 871(b)(2) for the taxable year” for “in the case of dividends paid by a foreign corporation unless (A) such corporation is engaged in trade or business within the United States, and (B) more than 85 percent of the gross income of such corporation for the 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence) was derived from sources within the United States as determined under part I of subchapter N of chapter 1” after “shall be required”.
Subsec. (c)(4). , struck out provisions which had served to limit to compensation for personal services of nonresident alien individuals who enter and leave the United States at frequent intervals and of nonresident alien individuals for the period they are temporarily present in the United States as a nonimmigrant under subparagraph (F) and (J) of section 101(a)(15) of the Immigration and Nationality Act, as amended, the application of the exemption from deduction and withholding under subsec. (a), leaving the exemption under subsec. (a) applicable to compensation for personal services without further limitation.
Subsec. (c)(5). , substituted “gains described in section 402(a)(2), 403(a)(2), or 631(b) or (c), gains subject to tax under section 871 (a)(1)(D), and gains on transfers described in section 1235 made on or before ,” for “amounts described in section 402(a)(2), section 403(a)(2), section 631(b) and (c), and section 1235, which are considered to be gains from the sale or exchange of capital assets,” and “amounts payable,” for “proceeds from such sale or exchange,”.
Subsec. (c)(7). , added par. (7).
Subsecs. (d), (e). , added subsec. (d) and redesignated former subsec. (d) as (e).
1964—Subsecs. (a), (b). reduced the withholding rate from 18% to 14%.
1961—Subsec. (a). , required a tax equal to 18 percent of the item in the case of any item of income specified in second sentence of subsection (b).
Subsec. (b). , inserted provisions listing items of income from which tax shall be deducted and withheld at the rate of 18 percent.
Subsec. (c)(4). , authorized the exemption from deduction and withholding of the compensation for personal services of a nonresident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subpar. (F) or (J) of section 101(a)(15) of the Immigration and Nationality Act, as amended.
1958—Subsecs. (b), (c)(5). inserted “section 403(a)(2),” after “section 402(a)(2),”.
1956—Subsec. (c)(6). Act , added section 544(f) to act , which section amended this subsection by adding par. (6).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2014 Amendment
Amendment by effective , subject to a savings provision, see , set out as a note under .
### Effective Date of 2004 Amendment
Amendment by applicable to dividends with respect to taxable years of regulated investment companies beginning after , see , set out as a note under .
### Effective Date of 1994 Amendment
Amendment by effective with calendar quarter following , see , set out as a note under .
### Effective Date of 1993 Amendment
Amendment by applicable to interest received after , see , set out as a note under .
### Effective Date of 1992 Amendment
Amendment by applicable to distributions after , see , set out as a note under .
### Effective Date of 1988 Amendment
Amendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
### Effective Date of 1986 Amendment
Amendment by applicable to taxable years beginning after , but only in the case of scholarships and fellowships granted after , see , set out as a note under .
Amendment by applicable to payments made in a taxable year of the payor beginning after , except as otherwise provided, see , as amended, set out as a note under .
Amendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .
### Effective Date of 1984 Amendment
Amendment by applicable to taxable years ending after , see , set out as an Effective Date note under .
Amendment by applicable to interest received after , with respect to obligations issued after such date, in taxable years ending after such date, see , set out as a note under .
Amendment by section 474(r)(29)(G), (H) of not applicable with respect to obligations issued before , see , set out as a note under .
### Effective Date of 1983 Amendment
Amendment by applicable to benefits received after , in taxable years ending after such date, except for any portion of a lump-sum payment of social security benefits received after , if the generally applicable payment date for such portion was before , see , set out as an Effective Date note under .
### Effective Date of 1971 Amendment
Amendment by applicable with respect to payments occurring on or after , see , set out as a note under .
### Effective Date of 1966 Amendment
Amendment by applicable with respect to payments made in taxable years of recipients beginning after , see , set out as a note under .
### Effective Date of 1964 Amendment
Amendment by applicable to payments made after seventh day following , see , set out as a note under .
### Effective Date of 1961 Amendment
> “The amendments made by subsection (d) of this section [amending this section] shall apply with respect to payments made after
>
> .”
, , , provided that:
### Effective Date of 1958 Amendment
Amendment by effective , see , set out as a note under .
### Repeals
Section 544(f) of act , cited as a credit to this section, was repealed by , except insofar as such section 544(f) affected this section.
### Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States
For nonapplication of amendments by sections 123(b)(2) and 1214(c)(3) of to the extent application of such amendments would be contrary to any treaty obligation of the United States in effect on , with provision that for such purposes any amendment by title I of be treated as if it had been included in the provision of to which such amendment relates, see section 1012(aa)(3), (4) of , set out as a note under .
### Plan Amendments Not Required Until January 1, 1994
For provisions directing that if any amendments made by subtitle B [§§ 521–523] of title V of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , set out as a note under .
### Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .
### Withholding of Tax on Nonresident Aliens and Foreign Corporations
> “Not later than 2 years after the date of the enactment of this Act [
>
> ], the Secretary of the Treasury or his delegate shall prescribe regulations establishing certification procedures, refund procedures, or other procedures which ensure that any benefit of any treaty relating to withholding of tax under sections 1441 and 1442 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] is available only to persons entitled to such benefit.”
, , , as amended by , , , provided that: