Accessing US Capital: Understanding the US Tax Perspective

There is an African proverb that says, “Not to know is bad; not to wish to know is worse.” In order to properly access US investment capital, a non-US company (an “Issuer”) and its advisors should understand not only the local non-US tax consequences, but also the potential US tax consequences, facing US investors with respect to the investment. The purpose of this article is to identify some of the key US tax concerns facing US investors making a capital investment outside the US so an Issuer can knowledgably respond to US investors’ questions about the investment and, if necessary, ...