As brought up at the #EscrowInstituteof California Conference, and at #CaliforniaEscrowAssociation meetings, there is potential drama if the following item in the BBB passes Senate (as it has already passed the Assembly. Apparently, foreigners with FIRPTA withholdings might be subject to increased withholding percentages depending on which country they are from and what the U.S. tariff requirements are with that country at the time of the closing of the transaction. Here are some links to Section 899 and its possible effects:
https://www.mwe.com/insights/the-proposed-us-tax-regime-for-non-us-investors-and-companies/
https://globaltaxnews.ey.com/news/2025-1172-united-states-proposed-irc-section-899-would-affect-certain-asset-management-entities
https://www.alvarezandmarsal.com/insights/proposed-section-899-tax-increases-target-foreign-investors-from-countries-with-unfair-foreign-taxes
US Section 899 Tax Proposal: A Threat to Foreign Capital Flows and Treasury Demand
https://www.winston.com/en/insights-news/one-big-beautiful-bill-proposed-tax-changes-clear-house-and-proceed-to-senate
This is hugely concerning for those of us who handle a lot of foreign investment transactions and we must all keep a close watch on this.
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Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
President and Escrow Manager
Viva Escrow! Inc.
Arcadia, CA 91006
www.vivaescrow.comhttps://julianatu.com------------------------------