Treasury releases proposed regulations providing guidance on FIRPTA exemption for foreign pension funds

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June 2019

Overview

Today, Treasury and the IRS released proposed regulations under Section 897(l).  The proposed regulations provide guidance regarding the exception from taxation with respect to gain or loss of a qualified foreign pension fund attributable to the disposition of interests in US real property interests.  The proposed regulations also include rules for certifying that a qualified foreign pension fund is not subject to withholding under Section 1445 or 1446 on dispositions of, and distributions with respect to, such US real property interests.

The proposed regulations contain 49 pages of preamble and 34 pages of regulatory text.  The proposed regulations are generally proposed to be effective for transactions occurring on or after the date of publication of final regulations in the Federal Register; however, certain rules are proposed to be effective for transactions occurring on or after the date of publication of the proposed regulations in the Federal Register, which is scheduled for June 7, 2019.

PwC will publish a detailed analysis of the proposed regulations within the coming days.

Contact us

Oren Penn

Principal, US Inbound Tax and International Tax Services, PwC US

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