[1042-S] Box 13j LOB Codes
Box 13j: LOB Treaty Category on Form 1042-S identifies the provision under a tax treaty that allows the income recipient to claim reduced withholding tax rates. This box applies when the recipient of U.S.-sourced income, such as dividends, interest, or royalties, is a resident of a country with which the U.S. has a tax treaty, and the treaty includes a Limitation on Benefits (LOB) article to prevent abuse of treaty benefits.
Code: LOB Treaty Category
02 – Government – contracting state/political subdivision/local authority
03 – Tax exempt pension trust/Pension fund
04 – Tax exempt/Charitable organization
05 – Publicly traded corporation
06 – Subsidiary of publicly traded corporation
07 – Company that meets the ownership and base erosion test
08 – Company that meets the derivative benefits test
09 – Company with an item of income that meets the active trade or business test
10 – Discretionary determination
11 – Other