26 USC § 1472 - Withholdable payments to other foreign entities

---
identifier: "/us/usc/t26/s1472"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1472 - Withholdable payments to other foreign entities"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1472"
section_name: "Withholdable payments to other foreign entities"
chapter_number: 4
chapter_name: "TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 111–147, title V, § 501(a), Mar. 18, 2010, 124 Stat. 102.)"
---


# § 1472. Withholdable payments to other foreign entities

**(a)** **In general** In the case of any withholdable payment to a non-financial foreign entity, if—

then the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.

**(1)** the beneficial owner of such payment is such entity or any other non-financial foreign entity, and

**(2)** the requirements of subsection (b) are not met with respect to such beneficial owner,

**(b)** **Requirements for waiver of withholding** The requirements of this subsection are met with respect to the beneficial owner of a payment if—

**(1)** such beneficial owner or the payee provides the withholding agent with either—

**(A)** a certification that such beneficial owner does not have any substantial United States owners, or

**(B)** the name, address, and TIN of each substantial United States owner of such beneficial owner,

**(2)** the withholding agent does not know, or have reason to know, that any information provided under paragraph (1) is incorrect, and

**(3)** the withholding agent reports the information provided under paragraph (1)(B) to the Secretary in such manner as the Secretary may provide.

**(c)** **Exceptions** Subsection (a) shall not apply to—

**(1)** except as otherwise provided by the Secretary, any payment beneficially owned by—

**(A)** any corporation the stock of which is regularly traded on an established securities market,

**(B)** any corporation which is a member of the same expanded affiliated group (as defined in section 1471(e)(2) without regard to the last sentence thereof) as a corporation described in subparagraph (A),

**(C)** any entity which is organized under the laws of a possession of the United States and which is wholly owned by one or more bona fide residents (as defined in section 937(a)) of such possession,

**(D)** any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,

**(E)** any international organization or any wholly owned agency or instrumentality thereof,

**(F)** any foreign central bank of issue, or

**(G)** any other class of persons identified by the Secretary for purposes of this subsection, and

**(2)** any class of payments identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion.

**(d)** **Non-financial foreign entity** For purposes of this section, the term “non-financial foreign entity” means any foreign entity which is not a financial institution (as defined in section 1471(d)(5)).

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**Source Credit**: (Added Pub. L. 111–147, title V, § 501(a), Mar. 18, 2010, 124 Stat. 102.)