portfolio interest
Defined in 2 places of the United States Code.
For purposes of this subsection, the term “portfolio interest” means any interest (including original issue discount) which—
(A) would be subject to tax under subsection (a) but for this subsection, and
(B) is paid on an obligation—
(i) which is in registered form, and
(ii) with respect to which—
(I) the person who would otherwise be required to deduct and withhold tax from such interest under section 1442(a) receives a statement which meets the requirements of section 871(h)(5) that the beneficial owner of the obligation is not a United States person, or
(II) the Secretary has determined that such a statement is not required in order to carry out the purposes of this subsection.
Source
- 2011–present26 U.S.C. § 881Internal Revenue Code · Tax on income of foreign corporations not connected with United States business · for purposes of this section
For purposes of this subsection, the term “portfolio interest” means any interest (including original issue discount) which—
(A) would be subject to tax under subsection (a) but for this subsection, and
(B) is paid on an obligation—
(i) which is in registered form, and
(ii) with respect to which—
(I) the United States person who would otherwise be required to deduct and withhold tax from such interest under section 1441(a) receives a statement (which meets the requirements of paragraph (5)) that the beneficial owner of the obligation is not a United States person, or
(II) the Secretary has determined that such a statement is not required in order to carry out the purposes of this subsection.
Source
- 2011–present26 U.S.C. § 871Internal Revenue Code · Tax on nonresident alien individuals · for purposes of this section
For purposes of this subsection, the term “portfolio interest” means any interest (including original issue discount) which would be subject to tax under subsection (a) but for this subsection and which is described in any of the following subparagraphs:
(A) Certain obligations which are not registered
Interest which is paid on any obligation which—
(i) is not in registered form, and
(ii) is described in section 163(f)(2)(B).
(B) Certain registered obligations
Interest which is paid on an obligation—
(i) which is in registered form, and
(ii) with respect to which the United States person who would otherwise be required to deduct and withhold tax from such interest under section 1441(a) receives a statement (which meets the requirements of paragraph (5)) that the beneficial owner of the obligation is not a United States person.
Source
- 1994–201126 U.S.C. § 871Internal Revenue Code · Tax on nonresident alien individuals · for purposes of this section
For purposes of this subsection, the term “portfolio interest” means any interest (including original issue discount) which would be subject to tax under subsection (a) but for this subsection and which is described in any of the following subparagraphs:
(A) Certain obligations which are not registered
Interest which is paid on any obligation which is described in section 871(h)(2)(A).
(B) Certain registered obligations
Interest which is paid on an obligation—
(i) which is in registered form, and
(ii) with respect to which the person who would otherwise be required to deduct and withhold tax from such interest under section 1442(a) receives a statement which meets the requirements of section 871(h)(5) that the beneficial owner of the obligation is not a United States person.
Source
- 1994–201126 U.S.C. § 881Internal Revenue Code · Tax on income of foreign corporations not connected with United States business · for purposes of this section