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ISDA 2015 Section 871(m) Protocol
The ISDA 2015 Section 871(m) Protocol (the “Protocol”) offers market participants an efficient way to amend ISDA Master Agreements to address the effects of Section 871(m) of the U.S. Internal Revenue Code and the regulations thereunder. For parties that have adhered to the ISDA 2010 HIRE Act Protocol and/or the ISDA 2010 Short Form HIRE Act Protocol (“2010 Protocols”) or otherwise incorporated language intended to address the impact of Section 871(m) in their ISDA Master Agreements or confirmations, the Protocol replaces such provisions for all transactions entered into on or after January 1, 2017. For parties that have not adhered to a 2010 Protocol and do not currently have language intended to address the impact of Section 871(m) in their ISDA Master Agreements, the Protocol will allocate the risk of withholding tax under Section 871(m) to the long party to any transaction entered into on or after January 1, 2016. The fundamental risk allocation in the Protocol is effectively the same as the previous risk allocation under the 2010 Protocols.
Please refer to the “Frequently Asked Questions” below for more information on the Protocol’s substance.
The Protocol is open to ISDA members and non-members. Parties will pay a one-time fee of $500 to ISDA to adhere to the Protocol. There is no cut-off date to this Protocol. ISDA does, however, reserve the right to designate a cut-off date by giving 30 days’ notice on this site.