FDAP Withholding on Derivatives? A Comparative Perspective
Author: Dashiell Shapiro.
Source: Volume 29, Number 01, Fall 2011 , pp.51-57(8)
< previous article |next article > |return to table of contents
Abstract:
There is an ongoing debate in the United States as to whether payments under derivative products should be subject to withholding tax under FDAP, and to date the IRS has not taken a definitive position. This article outlines the issues, and suggests that theUnited States should look to the United Kingdom for guidance, since the FDAP concept itself was borrowed from U.K. law, and the two countries have interpreted their laws in similar ways.Keywords: FDAP; withholding tax; annual payments; derivatives
Affiliations:
1: U.S. Department of Justice.