Disclaimer: Vectigal is not a tax advisory company; therefore this literature should not be construed as offering tax advice. All persons should consult with their tax and legal advisors with respect to tax issues. Furthermore, this literature should not be taken as an offer to buy or sell any securities.
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Derivatives Tax Refund
Vectigal Corporation provides immediate T+1 (Trade Date + 1) tax refund payments on dividend equivalent withholding taxes within U.S. source derivatives income payments. Vectigal's solutions are a significant development for financial intermediaries (i.e. withholding agents, global custodians, SWAP dealers, broker dealers, etc). Our services:
1. Provide tax treaty benefits to clients on the same day that dividend equivalent withholding taxes are withheld on: |
| a. Cross border securities lending income - substitute or manufactured dividend payments. |
| b. Sale and Repurchase Agreement (REPO) transactions. |
| c. Equity Linked Instruments (ELI) i.e. convertible bond instruments, etc. |
| d. Specified Notional Principal Contracts i.e. SWAPS, futures, forwards, etc. with a delta of 0.80 or more to the referenced underlying securities. |
| e. Custom Indexes per Section 871(m) regulations. |
2. Are consistent with the U.S. Treasury’s Final and Proposed Dividend Equivalent Regulations under Section 871(m) of the Internal Revenue Code as issued on December 4, 2013. |
Vectigal welcomes the new U.S. Department of The Treasury's proposed regulations to implement the statutory directive of Section 871(m), an amendment to the Internal Revenue Code enacted in 2010, and as issued on December 4, 2013. Our patented technology solutions (USPTO #8,234,206) provide immediate tax relief to global investors and financial intermediaries on their dividend and interest withholding taxes worldwide.
Click here to find out more about the U.S. Treasury's regulation.