Cal. Code Regs. Tit. 18, §§ 18662-0 - Table of Contents - Regulation Sections 18662-1 Through 18662-8
§ 18662-1.
Withholding -- Generally.
(a) Types of
Withholding -- Application of Regulation Sections
18662-0 through
18662-8.
(1) Overview.
(b) Withholding of Tax at Source.
(1) General.
(2) Real Estate Withholding.
(3) Withholding by Withholding
Agent.
(c) Withholding
Required After Notification.
§
18662-2. Definitions.
(a)
Buyer.
(b) California Business
Entity.
(c) California Real
Estate.
(d) California
Resident.
(e) California Trust or
Estate.
(f) Exempt
Organization.
(g)
Individual.
(h) Items of
Income.
(i) Non-California Business
Entity.
(j) Nonresident.
(k) Nonresident Alien.
(l) Nonresident Estate or Trust.
(m) [Reserved].
(n) Partner.
(o) Partnership.
(p) [Reserved].
(q) Payee.
(r) Payer.
(s) Permanent Place of Business.
(t) Person.
(u) Real Estate Escrow Person.
(v) Remitter.
(w) Seller.
(x) Transferee.
(y) Transferor.
(z) Withholding Agent.
§ 18662-3. Real Estate Withholding.
(a) General.
(b) Statutory Basis and Rates.
(c) Who Must Withhold -- Required
Notification and Responsibility.
(1)
Notification.
(2) Penalties for
Failure to Provide Notice.
(3) The
Real Estate Escrow Person May Assist the Buyer/Transferee With the
Buyer's/Transferee's Withholding Obligations.
(d) Exemption and Withholding Requirements.
(1) Full Exemption Under FTB Form
593.
(2) Transfers Requiring an
Exemption Certificate to Exempt the Sale From Withholding on FTB Form
593.
(3) Transfers That May
Partially or Fully Exempt the Sale from Withholding.
(e) Withholding on Special Entities.
(1) Grantor Trusts.
(2) Trusts.
(3) Bankruptcy Trusts and Estates.
(4) Estates.
(5) Conservatorships and
Receiverships.
(6) Relocation
Companies.
(f)
Procedures.
(1) Exemption Certificate and
Estimated Gain or Loss Certificate.
(2) Verification.
(3) Electing the Alternative Withholding
Calculation.
(g) Special
Rules.
(1) Multiple Family Units.
(2) Multiple Sellers/Transferors.
(3) Sellers/Transferors on Title for
Incidental Purposes.
(4) Sale of
Multiple Parcels.
(5)
Leaseholds/Options.
(6) Personal
Property Included in Real Estate Transaction.
(7) Short Sale
Transactions.
(h) FTB
Form 593, Real Estate Withholding Statement.
(i) FTB Form 593-V, Payment Voucher for Real
Estate Withholding.
§
18662-4. Withholding on Payments (Nonresident Withholding --
General.
(a) Nonresident Individuals and
Non-California Business Entities; De Minimis Amounts; and Rate.
(1) Nonresident Individuals and
Non-California Business Entities.
(2) De Minimis Amounts.
(3) Rate.
(4) Cross-References.
(b) Optional Withholding or No Withholding
Required.
(1) California Residents.
(2) California Business Entities.
(3) Tax Exempt Organizations.
(4) California Estates and Trusts.
(5) Banks and Banking Associations.
(6) Sale of Goods.
(7) Services of a Nonresident Outside of
California.
(8) Intangible Personal
Property.
(9) Motor Carrier
Compensation.
(10) Wages Paid to
Employees.
(11) Nonresident
Corporate Directors.
(12) Insurance
Companies, Individual Retirement Plans, Pension or Profit Sharing
Plans.
(13) Income from Qualified
Investment Securities.
(c) Withholding Exemption Certificates.
(1) General.
(2) Incomplete or Invalid Exemption
Certificates.
(3) California
Address.
(4) False
Certificate.
(d)
Information Returns Also Required.
(e) Waivers and Reduced Amounts.
(1) Waivers.
(2) Request for Reduced Withholding
Amount.
(3) Other Conditions As May
Be Required.
(f)
Requirement to File a California Return.
(g) Suspended and Forfeited
Corporations.
(h) FTB Form 590,
Withholding Exemption Certificate.
(i) FTB Form 592, Resident and Nonresident
Withholding Statement.
(j) FTB Form
592-PTE, Pass-Through Entity Annual Withholding Return.
(k) FTB Form 592-F, Foreign Partner or Member
Annual Withholding Return.
(l) FTB
Form 588, Nonresident Withholding Waiver Request.
(m) FTB Form 589, Nonresident Reduced
Withholding Request.
§
18662-5. Other Types of Payments and Withholding Obligations.
(a) Payments to Nonresidents Subject to
Withholding.
(1) General.
(2) California Source Income Subject to
Withholding.
(3) Business
Situs.
(4) Payments to Nonresident
Aliens or Foreign Entities.
(5)
Payments Made to Reimburse Expenses.
(6) Services in Connection With the Sale of
Goods.
(b) Payments to
Independent Contractors.
(c)
Payments to Nonresident Subcontractors.
(1)
Withholding Requirements.
(2)
Payments to California Residents.
(3) General Contractor Obligations.
(4) Multiple
Contractors/Contractor-of-Record.
(d) Rent or Lease Payments to Nonresidents.
(1) Rent or Lease Payments Made to
Nonresidents.
(2) Types of Rental
or Leased Property Subject to Withholding.
(e) Royalty Payments Made to Nonresidents.
(1) Compensation for the Right to Use Natural
Resources.
(2) Compensation for
Services Derived from Intangible Property Having a Taxable or Business Situs in
California.
(f) Payments
to Corporate Directors.
(1) Withholding Not
Required.
(2) Filing of Information
Return.
(g) Seminar
Speakers and Expert Witnesses.
(h)
Income Allocation.
(1) Nonresident
Contractors.
(2) Reliance on
Allocations Provided by Payees.
(3)
Allocation Based on Time.
(4)
Reasonable Method of Allocation Based on Goods and Services.
(5) Allocation of
Distributions.
(i) FTB
Form 588, Nonresident Withholding Waiver Request.
(j) FTB Form 589, Nonresident Reduced
Withholding Request.
(k) FTB Form
587, Nonresident Withholding Allocation Worksheet.
(l) FTB Form 590, Withholding Exemption
Certificate.
§
18662-6. Nonresident Withholding, Entertainers, Athletes, and
Speakers.
(a) Payments Subject to Withholding.
(1) General.
(2) Payments Made to Entertainer's Agents or
Promoters.
(3) Sound and
Lights.
(b) Request for
Waiver or Reduced Withholding Amount.
(c) Exceptions.
(1) California Resident.
(2) California Business Entity.
(3) Tax Exempt Organization.
(4) Total Payments Equal to or Less Than
$1,500.
(5) Services Performed
Outside of California.
(6)
Withholding Waiver Received.
(d) Entertainment Venues Having Similar
Names.
(e) Canceled
Performances.
(f) Additional Rules
for Athletes.
(1) Duty Days.
(2) Performance and Signing
Bonuses.
(g) FTB Form
590, Withholding Exemption Certificate.
(h) FTB Form 592, Resident and Nonresident
Withholding Statement.
(i) FTB Form
588, Nonresident Withholding Waiver Request.
(j) FTB Form 589, Nonresident Reduced
Withholding Request.
§
18662-8. Reporting and Remitting Amounts Withheld, Penalties, and
Interest; Other Procedures.
(a)
General.
(b) Real Estate Sales --
Information Returns.
(1) Payment Due Dates
and Form.
(2)
Reporting.
(c)
Withholding From Payments Other Than Real Estate Sales.
(1) Payment Due Dates.
(2) Reporting.
(3) Electronic and Magnetic Media.
(4) Withholding
Adjustments.
(d) Interest
and Penalties.
(1) Interest.
(2) Penalties and
Liabilities.
(e) Other
Information Returns.
(f)
Coordination With Group Returns.
(g) FTB Form 593, Real Estate Withholding Tax
Statement.
(h) FTB Form 593-V,
Payment Voucher for Real Estate Withholding.
(i) FTB Form 592, Resident and Nonresident
Withholding Statement.
(j) FTB Form
592-V, Payment Voucher for Nonresident or Resident Withholding.
(k) FTB Form 592-PTE, Pass-Through Entity
Withholding Return.
(l) FTB Form
592-Q, Payment Voucher for Pass-Through Entity Withholding.
(m) FTB Form 592-F, Foreign Partner or Member
Annual Withholding Return.
(n) FTB
Form 592-A, Payment Voucher for Foreign Partner or Member
Withholding.
(o) FTB Form 592-B,
Resident and Nonresident Withholding Tax Statement.
Notes
2. Change without regulatory effect amending subsection 18662-3(c)(3) filed 12-9-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 50).
3. Amendment filed 10-8-2019; operative 10-8-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 41).
Note: Authority cited: Section 19503, Revenue and Taxation Code. Reference: Section 18662, Revenue and Taxation Code.
2. Change without regulatory effect amending subsection 18662-3(c)(3) filed 12-9-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 50).
3. Amendment filed 10-8-2019; operative
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