All persons, who controls or makes payment of any of the
items of income specified in subsection (b) to the extent that any of such
items constitutes gross income from sources within the US, of any nonresident
alien individual or of any foreign partnership shall deduct and withhold from
such items a tax equal to 30 percent
except that in the case of any item of income specified in the second
sentence of subsection (b), the tax shall be equal to 14 percent.
The items of income referred to in subsection (a) are
interest , dividends, rent, salaries, wages, premiums, annuities,
compensations, remunerations, emoluments, or other fixed or determinable annual
or periodical gains, profits, and income, gains.
The items of
income referred to in subsection (a) from which tax shall be deducted and
withheld at the rate of 14 percent are amounts which are received by a
nonresident alien individual who is temporarily present in the United States as
a nonimmigrant which are incident to a
qualified scholarship.
(c)
Exceptions include but are not limited to:
No deduction or withholding under subsection (a) shall be
required in the case of any item of income (other than compensation for
personal services) which is effectively connected with the conduct of a trade
or business within the United States and which is included in the gross income
of the recipient.
Generally, no tax shall be required to be deducted and
withheld.
