What is the difference between Chapter 3 and Chapter 4 withholding, and does a treaty claim cover both?
I keep seeing 'Chapter 3' and 'Chapter 4' on withholding forms and the 1042-S, and both seem to be 30%. My foreign payee gave me a W-8 claiming a treaty rate. Does that single treaty claim take care of both chapters at once, or are they two separate things I have to handle? I don't want to under-withhold because I assumed the treaty covered everything.
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