(a) Requirement to withhold.— The partner or shareholder to whom the administration of the special partnership or of the corporation of individuals has been delegated, or any other persons to whom the requirement to furnish the report described in §§ 30242 or 30247 of this title to the partners or stockholders, has been delegated, shall deduct and withhold an amount equal to twenty-nine percent (29%) of the distributive share of a partner in the income of the special partnership, or an amount equal to thirty-three percent (33%), or the maximum applicable rates as provided in § 30061 of this title, of the distributive share of a shareholder in the income of the corporation of individuals, of a partner or of a shareholder who is a foreign individual, an estate, or a nonresident trust. The distributive share in the income of the partnership or the corporation of individuals shall be deemed to be distributed pursuant to the provisions of §§ 30566 or 30584(j) of this title, as applicable. The provisions of this subsection shall not apply to the share attributable to a nonresident shareholder not engaged in trade or business in Puerto Rico of international insurers or of international

The provisions of this subsection shall not apply to the share attributable to a nonresident shareholder not engaged in trade or business in Puerto Rico of international insurers or of international insurer holding companies which are compliant with § 4304 of Title 26.(b) Liability of the payer.— Except as otherwise provided, every person required to deduct and withhold any tax under the provisions of this section shall be liable to the Secretary for the payment of such tax and shall not be liable to any other person for the amount of any of such payments.(c) Failure to withhold.— If the withholding agent fails to withhold the amount referred to in subsection (a), unless the nonresident partner or shareholder pays the tax to the Secretary, the amount which should have been deducted and withheld shall be collected directly from the special partnership, the corporation of individuals, or the person in which the requirement to deduct and withhold the income tax was delegated. History —Jan. 31, 2011, No. 1, § 1062.10, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 73.