Interest Producing Investments
INTEREST-PRODUCING DEPOSITS, BONDS and other SECURITIES
U.S. Taxation of the Foreign Investor
The following Assets are Exempt from U.S. Estate Tax and the Interest or Dividends on such Assets are Exempt from U.S. Income Tax (or U.S. Withholding Tax)*:
Cash Deposits with U.S. Banks (other than merely as Trustee or custodian)
Certificate of Deposit
Cash Deposits with Foreign Commercial Bank Branches of U.S. Institutions
Cash Deposits with U.S. Commercial Bank Branch of a Foreign Institutions
Bonds or other Debt Obligations of U.S. Issuers or other U.S. Persons (other than the above deposits) issued after July 18, 1984, if (a) registered or if bearer issues targeted for foreign Investors and (b) otherwise qualified under Portfolio Exemption
U.S. Government T-Bills (maximum six-month maturity; over six-months and maximum
Original issue discount obligation (other than U.S. Government) (maximum six-month maturity)
U.S. Government T-Notes (maximum one-year maturity)
U.S. Government Bonds (maximum one-year maturity) or Treasury Notes (maximum one-year maturity)
Bonds issued by U.S. corporations or U.S. partnerships (more than one-year maturity)**
Non-bearer Euro/Yankee bonds issued by U.S. corporations (more than one-year maturity)**
Original issue discount obligation of a publicly traded corporation or publicly traded partnership (over six-months and maximum 12-month maturity)
The Dividends on the following Asset are Exempt from U.S. Income Tax (or U.S. Withholding Tax), but the Asset is only Partially Exempt from U.S. Estate Tax*ٱ:
Bonds or other Debt Obligations of U.S. Issuers or other U.S. Persons (other than the above deposits) issued after July 18, 1984, if (a) registered or if bearer issues targeted for foreign Investors and (b) otherwise qualified under Portfolio Exemption held by Mutual Fund that is a regulated investment company (“RIC”) designated by the Fund as an “interest-related dividend” paid with respect to years of the Fund beginning in 2005, 2006, or 2007
The information provided herein is based upon the following assumptions:
The Foreign Investor has timely submitted IRS Form W-8BEN (and W-8IMY or W-8EXP, if applicable) to Withholding Agent;
The Asset is owned directly for or by Foreign Investor; and
The Asset is held for Investment (and NOT effectively connected with Foreign Investor’s U.S. trade or business).
The information provided herein is based upon the assumption that the Foreign Investor or the family members of the Foreign Investor do not together own (directly, indirectly or constructively) 10% or more in a U.S. company or U.S. partnership doing business in the U.S.
The amount treated as exempt from U.S. Estate Tax is based on the proportion of assets in the Fund at the end of the quarter immediately preceding the decedent’s death that would be exempt if held directly by the Foreign Investor. This provision applies to decedents dying after December 31, 2004, and before January 1, 2008.