IRS 871(m)

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IRS 871(m) affects non-US investors who invest in derivative products that have US equities or indices as underlying.

SIX identifies “in-scope” and "potentially in-scope" derivatives based on their underlying instruments and indices.

See example

Delta calculations

  • Delta at issuance from issuers and exchanges
  • Daily delta for exchange-traded derivatives
See example

Qualified indices

  • Assess whether an index is Qualified
  • Derivatives with qualified index underlyings are marked as exempt from 871(m) withholding

Issuer data

  • Withholding responsibility
  • Simple or complex product
  • Delta at issuance
  • Shares in hedge
See example

Tax messages for Dividend Equivalent Payments

  • Including gross amount and payment date
  • Referencing the underlying dividend message
See example
Aerial view of a dam, symbolizing the two sides of the CSDR coin: data quality for cash penalty calculation and reconciliation for settlement reporting, highlighted in the "Two Sides of the CSDR Coin" webinar.
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US Tax Package

Aerial view of a dam, symbolizing the two sides of the CSDR coin: data quality for cash penalty calculation and reconciliation for settlement reporting, highlighted in the "Two Sides of the CSDR Coin" webinar.
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