Treasury Regulations · 26 CFR
§ 31.3401(a)(8)(C)-1. Remuneration for services performed in Puerto Rico by citizen of the United States.
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. § 3401(a)(8)(C)
Cite as 26 CFR § 31.3401(a)(8)(C)-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6516, 25 FR 13032, Dec. 20, 1960; 25 FR 14021, Dec. 31, 1960, unless otherwise noted.
- Issued under
- 26 U.S.C. § 3401(a)(8)(C)
- Length
- 298 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 0
¶(a) Remuneration paid for services performed within Puerto Rico for an employer (other than the United States or any agency thereof) by a citizen of the United States does not constitute wages and hence is not subject to withholding, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of Puerto Rico. The reasonable belief contemplated by section 3401(a)(8)(C) may be based upon any evidence reasonably sufficient to induce such belief, even though such evidence may be insufficient upon closer examination by the district director or the courts finally to establish that the employee was a bona fide resident of Puerto Rico for the entire calendar year.
¶(b) The employer may, in the absence of cause for a reasonable belief to the contrary, presume that an employee will be a bona fide resident of Puerto Rico during the entire calendar year.
¶(1) Unless the employee is known by the employer to have maintained his abode at a place outside Puerto Rico at some time during the current or the preceding calendar year; or
¶(2) In any case where the employee files with the employer a statement (containing a declaration under the penalties of perjury that such statement is true to the best of the employee's knowledge and belief) that such employee has at all times during the current calendar year been a bona fide resident of Puerto Rico and that he intends to remain a bona fide resident of Puerto Rico during the entire remaining portion of such current calendar year.
¶(c) This section has no application to remuneration paid to a citizen of the United States for services performed in Puerto Rico as an employee of the United States or any agency thereof.
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Where it sits in 26 CFR
- Subchapter C Employment taxes and collection of income tax at source
- Part 31 Employment taxes and collection of income tax at source
- Subpart E Collection of Income Tax at Source
Nearby sections
- § 31.3401(a)(6)-1A Remuneration for services of certain nonresident alien individuals paid before January 1, 1967.
- § 31.3401(a)(7)-1 Remuneration paid before January 1, 1967, for services performed by nonresident alien individuals who are residents of a contiguous country and who enter and leave the United States at frequent intervals.
- § 31.3401(a)(8)(A)-1 Remuneration for services performed outside the United States by citizens of the United States.
- § 31.3401(a)(8)(B)-1 Remuneration for services performed in possession of the United States (other than Puerto Rico) by citizen of the United States.
- § 31.3401(a)(8)(C)-1 Remuneration for services performed in Puerto Rico by citizen of the United States.
- § 31.3401(a)(9)-1 Remuneration for services performed by a minister of a church or a member of a religious order.
- § 31.3401(a)(10)-1 Remuneration for services in delivery or distribution of newspapers, shopping news, or magazines.
- § 31.3401(a)(11)-1 Remuneration other than in cash for service not in the course of employer's trade or business.
- § 31.3401(a)(12)-1 Payments from or to certain tax-exempt trusts, or under or to certain annuity plans or bond purchase plans, or to individual retirement plans.