Title 26 — Internal Revenue CodeRelease 119-73
§1443 Foreign Tax-exempt Organizations
Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 3— WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS › Subchapter A— Nonresident Aliens and Foreign Corporations › § 1443
Summary
Foreign tax-exempt organizations are not fully outside U.S. withholding rules. Withholding applies to their income that counts toward unrelated business taxable income, to the extent regulations provide. For income of foreign organizations subject to the tax under section 4948(a), withholding applies at a 4 percent rate.
Full Legal Text
Title 26, §1443
Internal Revenue Code — Source: USLM XML via OLRC
(a)In the case of income of a foreign organization subject to the tax imposed by section 511, this chapter shall apply to income includible under section 512 in computing its unrelated business taxable income, but only to the extent and subject to such conditions as may be provided under regulations prescribed by the Secretary.
(b)In the case of income of a foreign organization subject to the tax imposed by section 4948(a), this chapter shall apply, except that the deduction and withholding shall be at the rate of 4 percent and shall be subject to such conditions as may be provided under regulations prescribed by the Secretary.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places. 1969—Pub. L. 91–172, § 101(j)(22), designated existing provisions as subsec. (a) and added subsec. (b). Subsec. (a). Pub. L. 91–172, § 121(d)(2)(C), substituted “income” for “rents” after “this chapter shall apply to”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1969 AmendmentAmendment by section 101(j)(22) of Pub. L. 91–172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91–172, set out as an
Effective Date
note under section 4940 of this title. Amendment by section 121(d)(2)(C) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91–172, set out as a note under section 511 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 1443
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73