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California Air Resources Board April 2013CHAPTER 3: WHAT DOES MY COMPANY NEED TO DO TO COMPLY WITH THE CAPANDTRADE REGULATION? 3.1 Register with the CapandTrade Program The Compliance Instrument Tracking
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Chapter 3 pertains to the rules and regulations regarding withholding tax on non-resident aliens and foreign corporations.
Any person or entity making payments to non-resident aliens or foreign corporations is required to file chapter 3.
Chapter 3 forms must be completed accurately, including the identification of the payee, the type of income, and the amount of withholding tax.
The purpose of chapter 3 is to ensure that non-resident aliens and foreign corporations pay the appropriate amount of withholding tax on income sourced in the United States.
Information such as the payee's name, address, and taxpayer identification number, as well as the type and amount of income paid, must be reported on chapter 3 forms.
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