| Pub. 686, Certification for Reduced Tax Rates in Tax Treaty Countries |
2004 Tax Year |
Introductory Material
This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
What's New
Form 8802. Beginning July 5, 2004, you must file Form 8802, Application for United States Residency Certification, to request U.S. residency
certification.
Introduction
Many foreign countries withhold tax on certain types of income paid from sources within those countries to residents of other
countries. The rate
at which any country withholds tax on each type of income is generally set by that country's statutes. Generally, tax treaties
between the United
States and foreign countries reduce the statutory tax rate (sometimes to zero) for income paid to residents of the United
States. This reduced rate is
referred to as the treaty-reduced rate.
Upon receiving certification by the U.S. Government that an individual or entity is a U.S. resident, some countries will
allow withholding of tax
at the treaty-reduced rate. Other countries always withhold tax at their statutory tax rate and will refund the amount that
is more than the
treaty-reduced rate on receiving proof of U.S. residency.
To apply for certification, you must file Form 8802. This publication is a supplement to the instructions for Form 8802.
This publication discusses:
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Eligibility for tax treaty benefits,
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Proof of U.S. residency,
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How to apply for certification (including when to seek competent authority assistance), and
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Penalties of perjury statements.
Comments and suggestions.
Comments about this publication and your suggestions for future editions should be sent to:
Internal Revenue Service
Office of Tax Treaty
SE:LM:IN:TT:1
1111 Constitution Avenue, NW
Washington, DC 20224
U.S.A.
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