July 14, 2020

Volume X, Number 196

July 13, 2020

Subscribe to Latest Legal News and Analysis

US Withholding Tax on Dividend Equivalent Payments Under Swaps

The US Department of the Treasury has issued regulations with respect to withholding on “dividend equivalent” payments made to a non-US long party on swaps and other financial instruments that are linked to US equities. These regulations are effective for swaps entered into on or after January 1, 2017, and for payments made on or after January 1, 2018 on swaps entered into during 2016. The International Swaps and Derivatives Association is currently working on a revised protocol that will permit the short party to withhold US tax on dividend equivalent payments made to a non-US long party as required under the regulations. 

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume V, Number 289

TRENDING LEGAL ANALYSIS


About this Author

Partner

Jill E. Darrow is head of Katten's New York Tax Planning practice. She concentrates her practice in tax planning and tax law with a focus on partnership transactions, financial services, hedge funds, commodities funds and real estate.

Jill advises clients on all aspects of tax with a concentration in the areas of financial services and real estate. Her practice covers the tax aspects of transactions involving partnerships, limited liability companies, carried interests, subchapter S corporations, regulated investment companies (mutual funds), recording and...

212-940-7113