Dividends paid to foreign shareholders may be subject to U.S. taxation

Special Withholdings for Dividends to Foreign Shareholders There are special withholding tax rules that apply to dividends paid by U.S. corporations to foreign persons. Under these rules, you are required to withhold federal income tax at a 30% (or lower treaty rate) on dividends paid to foreign shareholders. Before you withhold on distributions to foreign persons or their intermediaries you must request proper documentation from these persons. The following is a brief summary of the documentation requirements, including what certification you can rely on to determine if a shareholder is subject to 30% (or lower treaty rate) withholding and how to treat payments to intermediaries. After you've had a chance to review this letter, please contact me so that we can discuss any special problems well in advance of the next dividend payment.