---
kind: "section"
citation: "26 U.S.C. § 1472"
title: "26"
title_heading: "Internal Revenue Code"
number: "1472"
heading: "Withholdable payments to other foreign entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1472"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 4 — Taxes to Enforce Reporting on Certain Foreign Accounts"
---

# §1472. Withholdable payments to other foreign entities

- (a) **In general—** In the case of any [withholdable payment](/usc/26/1473.md?p=1-A) to a non-financial [foreign entity](/usc/26/1473.md?p=5), if—
  - (1) the beneficial owner of such payment is such entity or any other non-financial [foreign entity](/usc/26/1473.md?p=5), and
  - (2) the requirements of [subsection (b)](#b) are not met with respect to such beneficial owner,

  then the [withholding agent](/usc/26/1473.md?p=4) with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.

- (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](/usc/26/1473.md?p=4) with either—
    - (A) a certification that such beneficial owner does not have any [substantial United States owners](/usc/26/1473.md?p=2-A), or
    - (B) the name, address, and TIN of each [substantial United States owner](/usc/26/1473.md?p=2-A) of such beneficial owner,
  - (2) the [withholding agent](/usc/26/1473.md?p=4) does not know, or have reason to know, that any information provided under [paragraph (1)](#b-1) is incorrect, and
  - (3) the [withholding agent](/usc/26/1473.md?p=4) reports the information provided under [paragraph (1)(B)](#b-1-B) to the Secretary in such manner as the Secretary may provide.
- (c) **Exceptions—** [Subsection (a)](#a) shall not apply to—
  - (1) except as otherwise provided by the Secretary, any payment beneficially owned by—
    - (A) any corporation the [stock](/usc/26/1504.md?p=a-4) of which is regularly traded on an established [securities](/usc/26/368.md?p=a-2-F-vii) market,
    - (B) any corporation which is a member of the same expanded [affiliated group](/usc/26/864.md?p=e-5-A) (as defined in [section 1471(e)(2)](/usc/26/1471.md?p=e-2) without regard to the last sentence thereof) as a corporation described in [subparagraph (A)](#c-1-A),
    - (C) any entity which is organized under the laws of a possession of the [United States](/usc/26/993.md?p=g) and which is wholly owned by one or more bona fide residents (as defined in [section 937(a)](/usc/26/937.md?p=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](/usc/26/414.md?p=m-6-A) 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](/usc/26/1473.md?p=5)” means any [foreign entity](/usc/26/1473.md?p=5) which is not a financial institution (as defined in [section 1471(d)(5)](/usc/26/1471.md?p=d-5)).

## Source credit

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