Section 956 final regulations confirm those eligible for territorial dividend exemption can benefit from foreign guarantee and collateral support without incurring US tax.

On May 23, 2019, the US Treasury and Internal Revenue Service (together, Treasury) published final regulations (the Final Regulations) under Section 9561 that allow US corporate borrowers to obtain credit support from non-US entities without incurring US tax, so long as certain conditions are met. The Final Regulations generally adopt the proposed regulations published by Treasury on November 5, 2018 (the Proposed Regulations).