In the case of any person who issues a registration-required obligation which is not in registered form, there is hereby imposed on such person on the issuance of such obligation a tax in an amount equal to the product of—
(1)1 percent of the principal amount of such obligation, multiplied by
(2)the number of calendar years (or portions thereof) during the period beginning on the date of issuance of such obligation and ending on the date of maturity.
For purposes of this section—
(1) Registration-required obligation
(A) In general
The term “registration-required obligation” has the same meaning as when used in section
163(f), except that such term shall not include any obligation which—
(i)is required to be registered under section
(ii)is described in subparagraph (B).
(B) Certain obligations not included
An obligation is described in this subparagraph if—
(i)there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person,
(ii)interest on such obligation is payable only outside the United States and its possessions, and
(iii)on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.
(2) Registered form
The term “registered form” has the same meaning as when used in section
2010—Subsec. (b)(1). Pub. L. 111–147amended par. (1) generally. Prior to amendment, text read as follows: “The term ‘registration-required obligation’ has the same meaning as when used in section
163(f), except that such term shall not include any obligation required to be registered under section
Amendment by Pub. L. 111–147applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) ofPub. L. 111–147, set out as a note under section
149 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 ofPub. L. 99–514, set out as an Effective Date; Transitional Rules note under section
141 of this title.
Section applicable to obligations issued after Dec. 31, 1982, with an exception for certain warrants, see section 310(d)(1), (3) ofPub. L. 97–248, set out as an Effective Date of 1982 Amendment note under section
103 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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