Title 26: Internal Revenue
PART 1—INCOME TAXES
Withholding of Tax on Nonresident Aliens and Foreign Corporations
and Tax-Free Covenant Bonds
§ 1.1441-1 Requirement for the deduction and withholding
of tax on payments to foreign persons.
(b)
General rules of withholding
(2)
Determination of payee and payee's status
(iii)
Payments to wholly-owned entities
For
purposes of this paragraph (b)(2)(iii)(A), a domestic entity means a
person that would be treated as a U.S. person
if it had an election in effect under
§301.7701–3(c)(1)(i) of this chapter to be treated as a corporation.
TITLE 26 >
Subtitle F >
CHAPTER 79 > § 7701
§ 7701. Definitions
(a)
When used in this title, where not otherwise
distinctly expressed or manifestly incompatible with the intent
thereof—
(4) Domestic
The term “domestic” when applied to a
corporation or partnership means created or organized in the United
States or under the law of the United
States or of any State unless, in the
case of a partnership, the Secretary provides otherwise by regulations.
[EDITORIAL: The above used to say "State or Territory" up until 1976, when "or Territory" was removed by P.L. 94-455, §1906(c)(3). By not having a comma in "State or Territory", they are the same]
26 C.F.R. §301.7701-5 Domestic, foreign, resident, and nonresident
persons.
A domestic corporation is one organized
or created in the United States, including only the States (and
during the periods when not States, the Territories of Alaska and
Hawaii), and the District of Columbia, or under the law of the United
States or of any State or Territory. A foreign corporation is one
which is not domestic. A domestic corporation is a resident corporation
even though it does no business and owns no property in the United
States. A foreign corporation
engaged in trade or business within the United States is referred
to in the regulations in this chapter as a resident foreign corporation,
and a foreign corporation not engaged in trade or business within
the United States, as a nonresident foreign corporation. A partnership
engaged in trade or business within the United States is referred
to in the regulations in this chapter as a resident partnership,
and a partnership not engaged in trade or business within the United
States, as a nonresident partnership. Whether
a partnership is to be regarded as resident or nonresident is not
determined by the nationality or residence of its members or by
the place in which it was created or organized.
[Amended by T.D. 8813, Federal Register: February 2, 1999 (Volume
64, Number 21), Page 4967-4975]