26 USC 894 - Income affected by treaty

U.S Code last checked for updates: Nov 23, 2024

§ 894.

Income affected by treaty

(a)

Treaty provisions

(1)

In general

(2)

Cross reference

(b)

Permanent establishment in United States

(c)

Denial of treaty benefits for certain payments through hybrid entities

(1)

Application to certain payments

A foreign person shall not be entitled under any income tax treaty of the United States with a foreign country to any reduced rate of any withholding tax imposed by this title on an item of income derived through an entity which is treated as a partnership (or is otherwise treated as fiscally transparent) for purposes of this title if—

(A)

such item is not treated for purposes of the taxation laws of such foreign country as an item of income of such person,

(B)

the treaty does not contain a provision addressing the applicability of the treaty in the case of an item of income derived through a partnership, and

(C)

the foreign country does not impose tax on a distribution of such item of income from such entity to such person.

(2)

Regulations

(Aug. 16, 1954, ch. 736, 68A Stat. 284; Pub. L. 89–809, title I, § 105(a), Nov. 13, 1966, 80 Stat. 1563; Pub. L. 100–647, title I, § 1012(aa)(6), Nov. 10, 1988, 102 Stat. 3533; Pub. L. 105–34, title X, § 1054(a), Aug. 5, 1997, 111 Stat. 943.)

cite as: 26 USC 894