On 2 April 2018, the Internal Revenue Service (IRS) issued a notice (2018-29) which provides interim partial relief from withholding tax obligations that are imposed on transfer of partnership interests by non-US persons (see previous item).

These obligations are applicable on amounts paid and on certain partnership distributions to a foreign person where the partnership is engaged in a trade or business in the U.S. Taxpayers may rely on the interim guidance provided in the notice pending the issuance of the final regulations.

For further information, please contact Paul Hale or Anvit Jain.