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74TH C ONGRESS . SESS . II. CH. 690 . JU NE 22, 1936 . alien individuals who enter and leave the United States at frequent intervals . Returns, etc., by (c) RETURN AND PAYMENT .-Every person required to deduct and withholding agent . withhold any tax under this section shall make return thereof on or before March 15 of each year and shall on or before dune 15, in An te, p. 167 2. lieu of the time prescribed in section 56, pay the tax to the official of the United States Government authorized to receive it . Every such person is hereby made liable for such tax and is hereby indem- ni fied agai nst the c laims and demands of any pe rson for t he amount of any payments made in accordance with the provisions of this se ction . Return of recipient of income on which tax (d ) INCOME of R EcrnrmwT . -Inc ome upon which any tax is required w ithheld . to be withheld at the source under this section shall be included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the amount of income tax as computed in such return. Tax paid by recipient . (e) TAX PAID BY RECIPIENT.-If any tax required under this sec- tion to be deducted and withheld is paid by the recipient of the income, it shall not be re-collected from the withholding agent ; nor in cases in which the tax is so paid shall any penalty be imposed upon or collected from the recipient of the income or the with- holding agent for failure to return or pay the same, unless su ch failure was fraudulent and for the purpose of evading payment. Refunds and credits (f) REFUNDS AND CREDITS .-Where there has be en an overpay- to withholding agent. ment of t ax under this sect ion any r efund or credit ma de under t he Post, p.1731. provisions of section 322 shall be made to the withholding agent unless the amount of such tax was actually withheld by the with- holding agent. Withholding before (g) WI THHOLDING BEF ORE ENACTMEN T OF ACT .-Notwithstanding ,en actme nt of Act . the provisions of subsections (a) and (b), the deduction and with- holding for any period prior to the tenth day after the date of the enactment of this Act shall be upon the items of income and at the Vol. 48, p.723 . rates prescribed in section 143 (a) and (b) of the Revenue Act of 1934, as amended, in lieu of the items and rates prescribed in such sub sect ions . Payment at source . SEC. 144. PAYMENT O F CO RPORA TION INCOME TAX AT SO URCE . By foreign corpora-
(a) GE NERAL RULE .-In the case of foreign corporations subject not in States . business in Uni ted to taxation under this title not engaged in trade or business within the United States and not having any office or place of business therein, there shall be deducted and withheld at the source in the Ante, p. 1700.
same manner and upon the same items of income as is provided in Rates . section 143 a tax equal to 15 per centum thereof, except that in the case o f dividend s the rat e shall b e 10 per centum, a nd except that in the case of corporations organized under the laws of a contiguous coun try such rate of 10 per cent um with r espect to dividend s shall be reduced to such rate (not less than 5 per centum) as may be provided by treaty with such country ; and such tax shall be returned and paid in the same manner and subject to the same conditions P rov s .
interest as provided in that section : Provided, That in the case of interest when granted free of tax . described in subsection (a) of that section (relating to tax-free cove nant bond s) the ded uction an d withhol ding shal l be at t he rate sp ecif ied in such sub sect ion . Withholding before (b) WITHHOLDING BEFORE ENACTMENT OF ACT .-Notwithstanding enactment of Act . the provisions of subsection (a), the deduction and withholding for any period prior to the tenth day after the date of the enactment of this Act shall be upon the items of income and at the rates prescribed vol.48, p. 724.
in section 144 of the Revenue Act of 1934, as amended, in lieu of the items and rates prescribed in such subsection .
