The 1042-S Income Code/Ch. 3 Tax Rate (ICTX) table defines Ch. 3 withholding tax rates including exemptions (that is, tax rate is 00.00) per the 1042-S Income Code for countries with which the US has entered into an income tax treaty. Two factors determine the population of this table:
IRS data in IRS Publication 515
Only countries with the Treaty Indicator selected on the IRS Country of Residence (ICTRY) table may be defined on this table.
Note: Reportable 1042-S transactions for undefined 1042-S Income Code/IRS Country Code combinations for Ch.3 recipients are taxed at the rate specified in the 1042-S Backup Withholding Rate field on the 1099 Processing Options and Controls (1099P) table.