United States: Withholding Tax

The Treasury Department and IRS have issued Notice 2026-61, extending the phase-in of Section 871(m) withholding regulations on dividend equivalent payments until 2029. This marks the sixth extension over more than a decade, affecting non-delta-one transactions, qualified derivative dealers, and the qualified securities lender regime, while Treasury officials indicate forthcoming regulations may replace or supplement the current framework.

In recent years, we have seen tax authorities increasingly relying on anti-abuse arguments to deny relief under double tax treaties.

On Jan. 13, 2025, Michigan Gov. Gretchen Whitmer (D-MI) signed several bills into law to stimulate economic growth, boost research and development...