Single-stock futures skirt US dividend-equivalent withholding

Skirting the tax

nicolas-billeaud

The US Treasury and the Internal Revenue Service (IRS) have finally released long-awaited proposed regulations relating to the 871(m) statute and “dividend-equivalent” withholding. 

Section 871(m) was enacted as part of the Hiring Incentives to Restore Employment (Hire) Act, and provides that dividend-equivalent payments to foreign entities will be treated as a dividend from sources within the US and subject to withholding.

For those who remember the previous regulations proposed in January 2012

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