Payee Tax Representation - ISDA Provision
Overview
No change between the 1992 ISDA and the 2002 ISDA.
Summary
US Payee Tax Representations
The required Payee Tax Representations depend on the nature of the Counterparty.
- US Person: Counterparty is a “U.S. person” for the purposes of the Internal Revenue Code of 1986 as amended.
- US Corporation: It is classified as a US Corporation for United States federal income tax purposes.
- Foreign Person: It is a “foreign person” for United States federal income tax purposes.
- Non-US Branch of Foreign Person: Each branch is a non-US branch of a foreign person for US federal income tax purposes
- Non-Withholding Partnership:It is classified as a “non-withholding foreign partnership” for United States federal income tax purposes.
- Connected Payments: Each payment received or to be received by it under this Agreement will be effectively connected with its conduct of a trade or business within the United States.
- Non-Connected Payments: Each such payment received or to be received by it in connection with this Agreement will not be effectively connected with its conduct of a trade or business in the United States
- Tax Treaty Benefits: It is fully eligible for the benefits of the “Business Profits” or “Industrial and Commercial Profits” provision, the “Interest” provision or any “Other Income” provision of the Income Tax Convention between the United States and Counterparty’s Jurisdiction* with respect to any payment described in such provisions and received or to be received by it in connection with this Agreement and no such payment is attributable to a trade or business carried on by it through a permanent establishment in the United States.
- Public International Organisation: It is a public international organization that enjoys the privileges, exemptions and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f).
- Withholding and Reporting: It will assume withholding and reporting for any payments (or portions of any payments) determined to be non-Effectively Connected income for United States federal income tax purposes.
- Monetary Policy: Its primary purpose for entering into this Agreement is to implement or effectuate its governmental, financial or monetary policy.
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- The JC’s famous Nutshell™ summary of this clause