82,891
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) m (Amwelladmin moved page Template:M summ 2002 ISDA 871(m) amendment to Template:Isda 871(m) amendment summ) |
||
(One intermediate revision by the same user not shown) | |||
Line 3: | Line 3: | ||
Yes! You’re right! They invested in swaps all the time! | Yes! You’re right! They invested in swaps all the time! | ||
The HIRE Act, by amending Section 871(m), clamps down on naughty foreigners avoiding [[withholding tax]] for dividends on US [[Share - Equity Derivatives Provision|equities]] and provides that everyone gets taxed at the same rate. | The [[HIRE Act]], by amending [[Section 871(m)]] of the [[Inland Revenue Code]], clamps down on naughty foreigners avoiding [[withholding tax]] for dividends on US [[Share - Equity Derivatives Provision|equities]] and provides that everyone gets taxed at the same rate. | ||
The new regulations establish up to a 30% [[withholding tax]] on foreign investors on dividend-equivalent payments under [[equity derivative|equity derivatives]]. | The new regulations establish up to a 30% [[withholding tax]] on foreign investors on dividend-equivalent payments under [[equity derivative|equity derivatives]]. | ||
Line 14: | Line 14: | ||
The calculation is cumulative so even if the delta threshold isn’t met in one transaction, it may be as a result a connected transaction. (Foiled, tricksy foreigners!) | The calculation is cumulative so even if the delta threshold isn’t met in one transaction, it may be as a result a connected transaction. (Foiled, tricksy foreigners!) | ||
===Documentationary things=== | |||
There is an ISDA-sponsored Hire Act Protocol you can sign up to, and a standardised amendment to Section 2(d) of the ISDA to take account of the Hire Act and make sure all your reporting is right. |