Revenue and Taxation Code § 18666

ARTICLE 5. Withholding

Current as of September 28, 2026Rev. & Tax. Code, § 18666Official source ↗

Amended by Stats. 2026, Ch. 236, Sec. 31. (SB 1435) Effective September 14, 2026. Applicable to taxable years beginning on or after January 1, 2025, provided in Section 46\nof Stats. 2026, Ch. 236.

(a) Section 1446 of the Internal Revenue Code, relating to withholding of tax on foreign partners’ share of effectively connected income, shall apply to the extent that the amounts represent income from California sources, except as otherwise provided.

(b) (1) The rate of tax referred to in Section 1446(b)(2)(A) of the Internal Revenue Code shall be the maximum tax rate specified in Sections 17041 and 17043, as applicable, rather than the rate specified in Section 1 of the Internal Revenue Code.

(2) The rate of tax referred to in Section 1446(b)(2)(B) of the Internal Revenue Code shall be the rate specified in Section 23151, 23181, or 23183, as applicable, rather than the rate specified in Section 11 of the Internal Revenue Code.

(3) Section 1446(f) of the Internal Revenue Code, relating to special rules for withholding on dispositions of partnership interests, shall not apply.