Does your company make payments to foreign entities or non-U.S. individuals?

If yes, you may have tax withholding requirements under US Tax Code Section 1441: Withholding & Reporting Requirements.

By: Michael Diaz, Jr., Miami Office; Arti Sangar, Miami Office

Tax Code Section 1441 sets forth the requirements for tax withholding that applies when a U.S. entity makes payments to a foreign person. Many U.S. companies, however, are either unfamiliar with the applicable rules, or are unaware of the significant risks of non-compliance. Every US company making payments to foreign persons has reason to be concerned about the potential 1441 liability.  US companies making payments to non-U.S. citizens should review the Internal Revenue Service (IRS) protocols and key points relating to withholding tax to assess their level of compliance. Learn more by linking here...

Argentina Increases Bonds Offered by $600 Million post US Order to Freeze its Assets

On June 18, 2010, it was announced that Argentina will increase the amount it can sell of 7 percent bonds due in 2017 by $600 million. On the same day, it was also announced that Argentina may extend its $18.3 billion debt restructuring past a June 22 deadline if the government feels the swap is progressing well. These announcements come less than a month after a U.S. Judge issued a restraining order to freeze $ 2.43 billion of Argentine assets in the U.S. at the behest of class-action plaintiffs. This report provides information relating to this interesting court ruling. Read more here.

“China Welcomes Foreign Investment”

By: Xin “Joe” Zhang, Shanghai, China Office

In the past two years, the landscape of foreign direct investment (“FDI”) in China has been changed by several newly promulgated regulations and made the investors ask the question: “Is foreign investment no longer welcomed in China?” To ease the worries of foreign investors, the State Council has recently issued several circulars that will have significant impact on foreign investors. In this article, Joe Zhang considers these circulars and their implications.  Click here to read more »

Civil RICO: Reaching Overseas To Grab Unwitting Wrongdoers

By: Chad Purdie, Miami Office

Companies doing business in the United States (or having a connection to the United States) increasingly have found themselves as defendants facing charges of racketeering in suits under RICO. Chad Purdie looks at the issue from a civil point of view with a detailed explanation of the RICO statute. This article also addresses the two key tests that apply for a civil RICO claim, as well as gives useful advice to companies doing businesses abroad. Click here to learn more »

New Development in Trade Secret Protection in China

Protection of commercial secrets is always a critical concern for companies doing business in China.  Unlike patents or copyrights, commercial secrets have value to the owner only if they remain secret and accessible only to the owner.  Unlike the U.S., China has lagged behind in trade secret legislation.  As a result, trade secret protection has always been a problem in China.  In this article, Vincent Li delineates and compares Chinese trade secret law to the Uniform Trade Secrets Act in the U.S and provides an update on the latest cases in China. The goal of this article is to provide the reader with an overview of trade secret protection regime in China and to outline trade secret protection strategies for foreign investors in light of the most recent regulatory developments.

Promexico Names Diaz Reus as Legal Representative at the World Expo, China

ProMexico, the government institution responsible for strengthening Mexico’s participation in the global economy recently entered into an agreement with Diaz Reus & Targ, LLP to serve as legal advisors to the Mexican delegation during the World Expo in Shanghai, China. This report provides an update on this development.