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

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FATCA News & Information July 26, 2024
Useful Links: IRS.gov FATCA Home News Essentials Key FATCA Provisions News Releases IRS - The Basics IRS Guidance Media Contacts e-News Subscriptions IRS Resources Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File	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 FATCA News & Information, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the FATCA News & Information mailing list. Please Do Not Reply To This Message.

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