# § 4701. Tax on issuer of registration-required obligation not in registered form
**(a)** **Imposition of tax** In the case of any person who issues a registration-required obligation which is not in registered form, there is hereby imposed on such person on the issuance of such obligation a tax in an amount equal to the product of—
**(1)** 1 percent of the principal amount of such obligation, multiplied by
**(2)** the number of calendar years (or portions thereof) during the period beginning on the date of issuance of such obligation and ending on the date of maturity.
**(b)** **Definitions** For purposes of this section—
**(1)** **Registration-required obligation**
**(A)** **In general** The term “registration-required obligation” has the same meaning as when used in section 163(f), except that such term shall not include any obligation which—
**(i)** is required to be registered under section 149(a), or
**(ii)** is described in subparagraph (B).
**(B)** **Certain obligations not included** An obligation is described in this subparagraph if—
**(i)** there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person,
**(ii)** interest on such obligation is payable only outside the United States and its possessions, and
**(iii)** on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.
**(2)** **Registered form** The term “registered form” has the same meaning as when used in section 163(f).
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**Source Credit**: (Added Pub. L. 97–248, title III, § 310(b)(4)(A), Sept. 3, 1982, 96 Stat. 598; amended Pub. L. 99–514, title XIII, § 1301(j)(5), Oct. 22, 1986, 100 Stat. 2657; Pub. L. 111–147, title V, § 502(e), Mar. 18, 2010, 124 Stat. 108.)
## Editorial Notes
### Amendments
2010—Subsec. (b)(1). amended par. (1) generally. Prior to amendment, text read as follows: “The term ‘registration-required obligation’ has the same meaning as when used in section 163(f), except that such term shall not include any obligation required to be registered under section 149(a).”
1986—Subsec. (b)(1). substituted “section 149(a)” for “section 103(j)”.
## Statutory Notes and Related Subsidiaries
### Effective Date of 2010 Amendment
Amendment by applicable to obligations issued after the date which is 2 years after , see , set out as a note under .
### Effective Date of 1986 Amendment
Amendment by applicable to bonds issued after , except as otherwise provided, see sections 1311 to 1318 of , set out as an Effective Date; Transitional Rules note under .
### Effective Date
Section applicable to obligations issued after , with an exception for certain warrants, see section 310(d)(1), (3) of , set out as an Effective Date of 1982 Amendment note under .