Final regulations - Treatment of withholding taxes imposed in certain “structured passive investment arrangements” 

September 3: The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9634) that adopt “with no substantive change” regulations that were proposed in 2011.

At issue was the creditability of foreign taxes paid or accrued in connection with certain “structured passive investment arrangements” (SPIAs) that Treasury and the IRS had identified as producing inappropriate economic benefits, in part, through use of the U.S. foreign tax credits.

The final regulations [PDF 199 KB] adopt the 2011 proposed regulations and remove corresponding temporary regulations.


The 2011 proposed regulations were issued to clarify that a foreign payment attributable to income of an entity includes withholding tax imposed on a dividend or other equity distribution (including those made by pass-through entities or a disregarded entity).

Read TaxNewsFlash-United States 2011-334.

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