2015 Section 871(m) Protocol Clause Samples

The 2015 Section 871(m) Protocol is a contractual provision designed to address the U.S. tax regulations under Section 871(m), which impose withholding tax on certain dividend equivalent payments made to non-U.S. persons. This clause typically outlines the responsibilities of parties to identify, report, and withhold the appropriate taxes on transactions such as equity derivatives or structured products that reference U.S. equities. By clearly allocating compliance duties and tax liabilities, the clause ensures that parties adhere to U.S. tax law and mitigates the risk of unexpected tax exposure or penalties.