Tax Representation Letter

If you make an investment into a company that is not incorporated in the United States, we require the company to sign a tax representation letter.

 

The tax representation letter is a document that all non-US portfolio companies sign. It's a confirmation that the company is neither majority owned by US persons, and that it doesn't earn a majority of its income from rent or interest (i.e. isn't a passive income generating company). The second part of the document lays out what the company would need to report if it ever became a 'passive foreign investment company'. As a reference, every US fund that invests in foreign incorporated companies will require the same or similar representations.

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