Foreign Withholding and Related Compliance

Regardless of whether an investor qualifies for tax treaty benefits, certain types of income or payments made to a foreign person require tax withholding. These income types include U.S. source fixed or determinable annual or period income (“FDAP”), effectively connected income (“ECI”), the gain on the sale of a U.S. partnership, and the gain on the sale of a direct or indirect interest in U.S. real property (“FIRPTA”). The identification and timely reporting of this withholding is important to avoid penalties and to account for all potential tax liabilities. We identify transactions and accrued income subject to these rules and assist with filing the required tax forms. ​For more information about completing the various W-8 forms, please see this Rödl Tax Matters. ​For more information about requesting a W-8 form, please see this Rödl Tax Matters.