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

Qualified Intermediaries News July 26, 2024
Useful Links IRS.gov Qualified Intermediary Home FATCA Home Other Useful Links About Form 1042 Form 1042 Modernized e-File (MeF) About Form 1042-S Form 1042-S Data Integrity Tool IRS Guidance	Issue Number:    2024-19 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 the Qualified Intermediaries e-mail list, an IRS e-mail 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 from the Qualified Intermediaries mailing list. Please Do Not Reply To This Message. To subscribe to or unsubscribe from another list, please go to the Main Subscription Page on the IRS.gov web site.

 

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need your email address to log in. If you have questions or problems with the subscription service, visit subscriberhelp.govdelivery.com. This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535