Section 871(m) amendment - ISDA Provision: Difference between revisions

Section 871(m) amendment - ISDA Provision (view source)

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 {{isdaanat|871(m) amendment}}
-[[Section 871(m)]] of the [[Internal Revenue Code]] clamps down on foreigners avoiding [[withholding tax]] for dividends on US [[Share - Equity Derivatives Provision|equities]]. Previously, US dividend [[Withholding tax|withholding]] did not apply to returns on notional principal contracts and instruments linked to underlying US equities.
+[[Section 871(m)]] of the [[Internal Revenue Code]] clamps down on dirty foreigners avoiding [[withholding tax]] for dividends on US [[Share - Equity Derivatives Provision|equities]]. Previously, US dividend [[Withholding tax|withholding]] did not apply to returns on notional principal contracts and instruments linked to underlying US equities.
 That’s all changed now.
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 The new regulations will establish up to a 30% [[withholding tax]] on foreign investors on dividend-equivalent payments under [[equity derivative|equity derivatives]].  There are a wide range of products that fall into this camp including [[swap]]s, [[option]]s, [[future]]s, [[convertible bond|convertible debt]], [[structured note|structured notes]] and other customised derivative where the  ...
-====Beware of {{tag|Greeks}}====
+===Beware of {{tag|Greeks}}===
 ... [[delta]] (see what I did there?) against the underlying stock is .08 or greater.