Caution: Also see Withholding and reporting obligations and Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Withholding on payments of U.S. source income to foreign persons under IRC 1441 to 1443 (Form 1042) Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if an Internal Revenue Code Section provides for a lower rate, or there is a tax treaty between the foreign person's country of residence and the United States. The tax is generally withheld (NRA withholding) from the payment made to the foreign person. The term NRA withholding is used in this area descriptively to refer to withholding required under sections 1441, 1442, and 1443 of the Internal Revenue Code. Generally, NRA withholding describes the withholding regime that requires 30% withholding on a payment of U.S. source income and the filing of Form 1042 and related Form 1042-S. Payments to all foreign persons, including nonresident alien individuals, foreign entities and governments, may be subject to NRA withholding In referring to NRA withholding in this area, it does not include withholding done under section 1445 of the Internal Revenue Code, dealing with Withholding of Tax on Dispositions of U.S. Real Property Interests (FIRPTA), or under section 1446 of the Internal Revenue Code, dealing with Withholding Tax on Foreign Partners’ Share of Effectively Connected Income (Partnership Withholding) or withholding under section 1446(f) on disposition of certain partnership interests. NRA withholding does include FATCA provisions under IRC 1471 to 1474. Withholding of tax Withholding agent Persons subject to NRA withholding Identifying the payee Flow-through entities Foreign intermediaries Qualified intermediary Withholding foreign partnership and foreign trust Foreign persons Documentation Beneficial owners and documentation Forms for foreign beneficial owners Payments made to foreign intermediaries and foreign flow-through entities Form W-8IMY Standards of knowledge Presumption rules Withholding certificate forms under I.R.C. sections 1441-1464 Income subject to NRA withholding Fixed, determinable, annual, periodical (FDAP) income Nonresident aliens - Source of income Who must file Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding Amounts subject to NRA withholding and reporting Amounts not subject to NRA withholding and reporting Withholding on specific income Foreign governments and certain other foreign organizations U.S. Taxpayer Identification Number (TIN) requirement Depositing withheld taxes, when deposits are required, and adjustment for overwithholding in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities Returns required Discussion of Form 1042, Form 1042-S and Form 1042-T Electronic reporting of Forms 1042-S Forms to be used The form used by the foreign person to document itself depends on the type of certification being made. As used in this discussion of NRA withholding, the term "Form W-8" refers to the appropriate document. Refer to Beneficial owners and documentation for more information. Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) Form W-8ECI, Certificate of Foreign Person's Claim for Exemption From Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the United States Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding Instructions for the Requester of Forms W-8BEN, W–8BEN–E, W–8ECI, W–8EXP, and W–8IMY References/Related topics Publication 15, (Circular E), Employer's Tax Guide Publication 15-A, Employer's Supplemental Tax Guide Publication 15-B, Employer's Tax Guide to Fringe Benefits About Publication 51, (Circular A), Agricultural Employer's Tax Guide Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities Publication 519, U.S. Tax Guide for Aliens Publication 901, U.S. Tax Treaties Form SS-4, Application for Employer Identification Number Form W-2, Wage and Tax Statement Form W-4, Employee's Withholding Allowance Certificate Form W-4P, Withholding Certificate for Pension or Annuity Payments Form W-7, Application for IRS Individual Taxpayer Identification Number Form 941, Employer's Quarterly Federal Tax Return Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court cases filed on or after May 1, 1986, visit the Opinions Search page of the United States Tax Court.