Withholding agents: What is a partial suspension of U.S. – Russia income tax treaty?

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e-News for Withholding Agents July 26, 2024
e-file Resources   IRS.gov Qualified Intermediaries (QI) News e-File for Large Business and International (LB&I) Other Useful Links Withholding Agent Qualified Intermediary FATCA Home Page Tax Professionals Home Forms and Instructions e-Services Internal Revenue Bulletins Taxpayer Advocate Service	Issue Number:    2024-12 Withholding agents: What is a partial suspension of U.S. – Russia income tax treaty? On June 21, 2024, Announcement 2024-26 (.pdf 48.30 KB) was issued providing notice of the partial suspension of the U.S. – Russia income tax treaty. The suspension will take effect both for taxes withheld at source and in respect of other taxes on August 16, and will continue until otherwise decided by the two governments. Why is this important for withholding agents? The partial suspension of the treaty will require withholding agents to start withholding at the statutory 30% withholding tax rate on payments of U.S. source income made on or after August 16, to recipients that may have previously claimed treaty benefits under the U.S. - Russia income tax treaty. As such, withholding agents should review their payment systems and make the necessary adjustments to ensure they are withholding at the right rate to avoid liability for failure to withhold at the correct rate. For more guidance, please read Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Back to Top Thank you for subscribing to e-News for Withholding Agents, an IRS email service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically. Please Do Not Reply To This Message.

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