The new withholding tables will tell employers and payroll administrators how much less in federal income taxes to withhold from
counterpart and is intended to equal withholding tax that a Canadian corporation would withhold from
dividends paid to foreign shareholders.
Therefore, Nortem intends to withhold from
the final liquidating distribution at the general Dutch tax withholding rate (25% of the Dutch "dividend" amount) with respect to all shareholders; after the liquidating distribution, a shareholder eligible for treaty benefits will be entitled to file for a refund of amounts withheld in excess of the applicable treaty rates with the Dutch tax authorities in The Netherlands.
Penalties for failure to withhold from
eligible rollover distributions made after Dec.
So how do individuals know how much they should withhold from
their paycheck given the new tax law changes?
3405(b)(2) requires the payor of any nonperiodic distribution to withhold from
such distribution 10% for distributions that are not qualified total distributions, and an amount determined under IRS tables for qualified total distributions.