New Guidance on US Withholding on Dividend Equivalent Payments on Swaps over US Equities

On January 19, 2012, new guidance was released regarding swap contracts over US equities that call for "dividend equivalent payments" that can be subject to up to 30 percent gross US withholding. Helpfully, the guidance extended, from March 19, 2012 to December 31, 2012, the period during which the current standards apply for determining whether "dividend equivalent" payments on swaps are subject to US withholding tax.

Read more about it here.

If you would like to discuss any of the issues raised, please get in touch with your usual PwC contact.

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