Treasury Regulations · 26 CFR
§ 1.1443-1. Foreign tax-exempt organizations.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 1443
Cite as 26 CFR § 1.1443-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- October 14, 1997 by T.D. 8734
- Last amended
- April 29, 2008 by T.D. 9394
- Issued under
- 26 U.S.C. § 1443
- Length
- 824 words · about 4 min to read
- Cross-references
- cites 9 Code sections and 7 regulations; cited by 3
¶(a) Income includible in computing unrelated business taxable income. In the case of a foreign organization that is described in section 501(c), amounts paid or effectively connected taxable income allocable to the organization that are includible under section 512 and section 513 in computing the organization's unrelated business taxable income are subject to withholding under §§ 1.1441-1, 1.1441-4, 1.1441-6, and 1.1446-1 through 1.1446-6, in the same manner as payments or allocations of effectively connected taxable income of the same amounts made to any foreign person that is not a tax-exempt organization. Therefore, a foreign organization receiving amounts includible under section 512 and section 513 in computing the organization's unrelated business taxable income may claim an exemption from withholding or a reduced rate of withholding with respect to that income in the same manner as a foreign person that is not a tax-exempt organization. See § 1.1441-9(b)(3) for a presumption that amounts are includible under section 512 and section 513 in computing the organization's unrelated business taxable income in the absence of reliable certification. See also § 1.1446-3(c)(3), applying this presumption in the context of section 1446.
¶(1) In general. The gross investment income (as defined in section 4940(c)(2)) of a foreign private foundation is subject to withholding under section 1443(b) at the rate of 4 percent to the extent that the income is from sources within the United States and is subject to the tax imposed by section 4948(a) and the regulations under that section. Withholding under this paragraph (b) is required irrespective of the fact that the income may be effectively connected with the conduct of a trade or business in the United States by the foreign organization. See § 1.1441-9(b)(3) for applicable presumptions that amounts are subject to tax under section 4948. The withholding imposed under this paragraph (b)(1) does not obviate a private foundation's obligation to file any return required by law with respect to such organization, such as the form that the foundation is required to file under section 6033 for the taxable year.
¶(2) Reliance on a foreign organization's claim of foreign private foundation status. For reliance by a withholding agent on a foreign organization's claim of foreign private foundation status, see § 1.1441-9 (b) and (c).
¶(3) Applicable procedures. A withholding agent withholding the 4-percent amount pursuant to paragraph (b)(1) of this section shall treat such withholding as withholding under section 1441(a) or 1442(a) for all purposes, including reporting of the payment on a Form 1042 and a Form 1042-S pursuant to § 1.1461-1 (b) and (c). Similarly, the foreign private foundation shall treat the 4-percent withholding as withholding under section 1441(a) or 1442(a), including for purposes of claims for refunds and credits.
¶(4) Claim of benefits under an income tax treaty. The withholding procedures applicable to claims of a reduced rate under an income tax treaty are governed solely by the provisions of § 1.1441-6 and not by this section.
¶(c) Effective date—
¶(1) In general. This section applies to payments made after December 31, 2000, except that the references in paragraph (a) of this section to effectively connected taxable income and withholding under section 1446 shall apply to partnership taxable years beginning after May 18, 2005, or such earlier time as the regulations under §§ 1.1446-1 through 1.1446-5 apply by reason of an election under § 1.1446-7.
¶(2) Transition rules. For purposes of this section, the validity of an affidavit or opinion of counsel described in § 1.1443-1(b)(4)(i) in effect prior to January 1, 2001 (see § 1.1443-1(b)(4)(i) as contained in 26 CFR part 1, revised April 1, 1999) is extended until December 31, 2000. However, a withholding agent may choose to not take advantage of the transition rule in this paragraph (c)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2001 (see 26 CFR part 1, revised April 1, 1999) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2001 (see 26 CFR part 1, revised April 1, 1999). Further, a new withholding certificate remains valid for the period specified in § 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.
[T.D. 8734, 62 FR 53466, Oct. 14, 1997, as amended by T.D. 8804, 63 FR 72186, Dec. 31, 1998; T.D. 8856, 64 FR 73411, Dec. 30, 1999; T.D. 9200, 70 FR 28717, May 18, 2005; T.D. 9394, 73 FR 23074, Apr. 29, 2008]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 501 Exemption from tax on corporations, certain trusts, etc.
- § 512 Unrelated business taxable income
- § 513 Unrelated trade or business
- § 4948 Application of taxes and denial of exemption with respect to certain foreign organizations
- § 4940 Excise tax based on investment income
- § 1443 Foreign tax-exempt organizations
- § 6033 Returns by exempt organizations
- § 1441 Withholding of tax on nonresident aliens
- § 1446 Withholding of tax on foreign partners’ share of effectively connected income
Regulations it cites
- § 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
- § 1.1441-9 Exemption from withholding on exempt income of a foreign tax-exempt organization, including foreign private foundations.
- § 1.1446-3 Time and manner of calculating and paying over the 1446 tax.
- § 1.1461-1 Payment and returns of tax withheld.
- § 1.1441-6 Claim of reduced withholding under an income tax treaty.
- § 1.1446-1 Withholding tax on foreign partners' share of effectively connected taxable income.
- § 1.1446-7 Applicability dates.
Cited by 3 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 9394 (73 FR 23074)
- Amended by T.D. 9200 (70 FR 28717)
- Amended by T.D. 8856 (64 FR 73411)
- Amended by T.D. 8804 (63 FR 72186)
- Issued by T.D. 8734 (62 FR 53466)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Withholding of Tax on Nonresident Aliens and Foreign Corporations and Tax-Free Covenant Bonds
Nearby sections
- § 1.1441-10 Withholding agents with respect to fast-pay arrangements.
- § 1.1442-1 Withholding of tax on foreign corporations.
- § 1.1442-2 Exemption under a tax treaty.
- § 1.1442-3 Tax exempt income of a foreign tax-exempt corporation.
- § 1.1443-1 Foreign tax-exempt organizations.
- § 1.1445-1 Withholding on dispositions of U.S. real property interests by foreign persons: In general.
- § 1.1445-2 Situations in which withholding is not required under section 1445(a).
- § 1.1445-3 Adjustments to amount required to be withheld pursuant to withholding certificate.
- § 1.1445-4 Liability of agents.