Section 280G in the International Context

The Internal Revenue Code of 1986, as amended (the “Code”) imposes a 20% excise tax on compensatory payments made to a number of individuals under §280G of the Code and its regulations that are made pursuant to a corporate sale, and a loss of deduction on those amounts for the payor. Section 280G does not exclude either foreign individuals or corporations from coverage, meaning that non-U.S. taxpaying persons can become subject to the excise taxes and loss of deduction. The purpose of this article is to discuss some of the implications of foreign persons being subject to the tax and ...