Payee Tax Representation - ISDA Provision: Difference between revisions

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{{isdaanat|3(f)}}
{{manual|MI|2002|3(f)|Section|3(f)|medium}}
{{isdaanat|FATCA Amendment}}
{{h1|US Tax Reps}}
The Payee Tax [[reps]] required depend on the nature of the {{isdaprov|Counterparty}}.
 
==Tax Reps For ISDA==
*'''[[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 {{isdaprov|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.
{{isdaquote|'''[[HIRE Act]]''':<br>
1. The flush language at the end of Section {{isdaprov|2(d)(ii)}} ({{isdaprov|Obligations}} - {{isdaprov|Deduction or Withholding for Tax}} – Liability) of this {{isdaprov|Agreement}} is replaced in its entirety with the following:<br>
:"then, except to the extent Y has satisfied (including by making a payment to X pursuant to Section {{isdaprov|2(d)(iii)}}) or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability (including any related liability for interest, but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d))."
2. The following is added at the end of Section 2(d) as new section 2(d)(iii):<br>
:'''Additional Amendments related to Tax'''. The parties agree that solely as between Party A and Party B, the definitions and provisions contained in the [[ISDA 2010 Short Form HIRE Act Protocol]] published by the [[International Swaps and Derivatives Association]], Inc. on November 30, 2010, including the Attachment thereto ("Short Form Protocol"), will be deemed to be incorporated herein, mutatis mutandis, as though such definitions and provisions were set out in full herein, with any such conforming changes as are necessary to deal with what would otherwise be inappropriate or incorrect cross references. The parties further agree that the Implementation Date (as such term is defined in the Short Form Protocol) shall be the date of execution of this Agreement.|Hire Act Amendment|2002}}

Revision as of 15:31, 24 February 2020

2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual™

Resources and navigation

[[{{{1}}} - 1992 ISDA Provision|This provision in the 1992]]

Resources Wikitext | Nutshell wikitext | 1992 ISDA wikitext | 2002 vs 1992 Showdown | 2006 ISDA Definitions | 2008 ISDA | JC’s ISDA code project
Navigation Preamble | 1 • (a) (b) (c) | 2 • (a) (b) (c) (d) | 3 • (a) (b) (c) (d) (e) (f) (g) | 4 • (a) (b) (c) (d) (e) | 5 • 5(a) Events of Default: 5(a)(i) Failure to Pay or Deliver 5(a)(ii) Breach of Agreement 5(a)(iii) Credit Support Default 5(a)(iv) Misrepresentation 5(a)(v) Default Under Specified Transaction 5(a)(vi) Cross Default 5(a)(vii) Bankruptcy 5(a)(viii) Merger Without Assumption 5(b) Termination Events: 5(b)(i) Illegality 5(b)(ii) Force Majeure Event 5(b)(iii) Tax Event 5(b)(iv) Tax Event Upon Merger 5(b)(v) Credit Event Upon Merger 5(b)(vi) Additional Termination Event (c) (d) (e) | 6 • (a) (b) (c) (d) (e) (f) | 7 | 8 • (a) (b) (c) (d) | 9 • (a) (b) (c) (d) (e) (f) (g) (h) | 10 | 11 | 12 • (a) (b) | 13 • (a) (b) (c) (d) | 14 |

Index: Click ᐅ to expand:
2002 ISDA
1992 ISDA

Section 3(f) in a Nutshell™

Use at your own risk, campers!
3(f) Payee Tax Representation. Each Payee Tax Representation it has made to which this Section 3(f) applies (as specified in the Schedule) is true.

Full text of Section 3(f)

3(f) Payee Tax Representations. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(f) is accurate and true.

Related agreements and comparisons

Click here for the text of Section 3(f) in the 1992 ISDA
Template:Isdadiff 3(f)

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Content and comparisons

No change between the 1992 ISDA and the 2002 ISDA.

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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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General discussion

Template:M gen 2002 ISDA 3(f)

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See also

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References

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