ICMSA Bulletin 180305/42: Guidelines for securities subject to US Tax Section 871(m)

This bulletin has been produced by the ICMSA Global Tax Sub-Committee to provide guidance relating to the 871(m) regulation.

The U.S. Internal Revenue Service (IRS) issued Final and Temporary Regulations on Dividend Equivalent Payments from U.S. sources on 19 January 2017. The purpose of the document is to provide guidance for:

  • The acceptance of section 871(m) securities issued and held through the ICSDs.
  • The reporting of section 871(m) DEPs (dividend equivalent payments) for the Form 1042-S reporting.
  • The reporting of inventory of unsold positions deemed non-reportable by the issuer for the purposes of Form 1042-S reporting.

ICMSA Bulletin 170727/40: Recommendations for the completion of the Conditions Precedent to Closing Mechanisms

There is a change on page one of the bulletin (providing information on large new issue transactions denominated in less liquid or ‘exotic’ currencies) to update BULLETIN – 140808/30 – recommendations for the completion of the Conditions Precedent to Closing as early as possible in the international primary market

In response to concerns raised around late closings and consequential delayed payments to issuers (causing liquidity problems), the ICMSA seeks to inform all participants in the international primary market of the ICMSA recommendations for the completion of the Conditions Precedent to Closing (CPs) as early as possible on the specified legal closing date.

These recommendations are applicable to syndicated closings through a Common Depositary taking place in European time zones and in relation to same day currencies.