Single-stock futures skirt US dividend-equivalent withholding
Listed futures and options have economics that put them outside of the proposed regulations on US dividend withholding tax under the Hire Act, writes Nicolas Billeaud at Light Horse Market Solutions
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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