Page 209 - International Taxation IRS Training Guides
P. 209

Hybrid Transactions







                                                              generally any transaction, series of
             Hybrid transaction is
                                              agreement, or instrument with a payment
                 transactions,

                 treated as interest
                                                         or royalties for US federal income tax

                 purposes
                                      but not so treated for foreign tax law purposes





                                   Foreign


                                   treatment:                          FP
                                   Exempt
                                   dividend                                                Hybrid


                                                                                           Instrument

                                   US

                                   treatment:                         USC

                                   Interest








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