Contents Introduction  ........................................ 2 New Forms  .......................................... 2 Withholding of Tax  ............................. 3 Withholding Exemptions and Reductions  ................................... 4 Income Subject to Withholding  ........ 7 Withholding on Specific Income  ...... 9 Interest  ............................................ 9 Dividends  ........................................ 11 Certain Gains  .................................. 12 Royalties  ......................................... 12 Real Property Income  ..................... 12 Pensions, Annuities, and Alimony  .. 12 Scholarships and Fellowship Grants 13 Other Grants, Prizes, and Awards  . 14 Pay for Personal Services Performed  ................................ 14 Other Income  .................................. 18 U.S. Taxpayer Identification Numbers  ....................................... 18 Depositing Withheld Taxes  ............... 18 Returns Required  ............................... 20 Partnership Withholding on Effectively Connected Income  ... 21 U.S. Real Property Interest   ............... 22 Tax Treaty Tables  ............................... 25 Table 1. Withholding Tax Rates on Income Other Than Personal Service Income—for Withholding in 2000  ................. 26 Table 2. Compensation for Personal Services Performed in United States Exempt from Withholding and U.S. Income Tax Under Income Tax Treaties  ................ 29 Table 3. List of Tax Treaties  .......... 40 How To Get More Information  .......... 41 Index  .................................................... 42 Important Changes Income  tax  treaties.    New  income  tax  trea- ties   with   Estonia,   Latvia,   Lithuania,   and Venezuela went into effect January 1, 2000. New   electronic   deposit   rules.   For  return periods  beginning  after  1999,  you  must  use electronic  funds  transfer  to  deposit  taxes  if you  had  to  deposit  more  than  $200,000  of federal  depository  taxes  in  the  second  pre- ceding  calendar  year.  Once  you  meet  this requirement,  you  have  to  continue  making deposits   electronically   for   all   subsequent years.  For  example,  you  must  deposit  taxes electronically  for  return  periods  beginning  in and  after  2000  if  you  deposited  more  than $200,000 during 1998. If you do not meet the $200,000 threshold, electronic deposits are voluntary, even if you were required to deposit electronically under a previous threshold. Department of the Treasury Internal Revenue Service Publication 515 (Rev. April 2000) Cat. No. 15019L Withholding of Tax on Nonresident Aliens and Foreign Corporations For Withholding in 2000