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Section 881(a) provides that a 30-percent tax shall be
imposed on "the amount received from sources within the United
States by a foreign corporation" falling within certain
categories of income.12 Section 1442 provides a method for
collecting that tax. Central de Gas de Chihuahua, S.A. v.
Commissioner, 102 T.C. at 519.
Section 1442 provides in part:
(a) General Rule.-- In the case of foreign
corporations subject to taxation under this subtitle,
there shall be deducted and withheld at the source in
the same manner and on the same items of income as is
provided in section 1441 a tax equal to 30 percent
thereof. * * *
Royalties are among the types of income included in section
1441(b). Sec. 1.1441-2(a), Income Tax Regs.; see also sec.
1.881-2(b), Income Tax Regs. In addition, section 861(a)(4)
provides that U.S. source income includes:
(4) Rentals and Royalties.--Rentals or royalties
from property located in the United States or from any
interest in such property, including rentals or
royalties for the use of or for the privilege of using
in the United States patents, copyrights, secret
processes and formulas, good will, trade-marks, trade
brands, franchises, and other like property.
Section 1441(a) completes the picture of the statutory
provisions involved herein. It provides:
12 A "foreign" corporation is a corporation that is not created
or organized in the United States or under the law of the United
States or of any State. Sec. 7701(a)(4) and (5).
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