In This Issue
Quick Links
Contact Us
September 2016
Tax Changes Affecting Foreign Investors

New IRS Rules for Form W-8BEN-E
Effective April 2016, the IRS released an updated Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities). The United States generally imposes a thirty percent withholding tax on certain types of income from a United States source to a foreign, non-resident entity. The federal government allows certain entities to take advantage of reduced withholdings by completing IRS Form W-8BEN-E. The recent IRS changes released in the updated April 2016 version of the form now require foreign entities to identify more specifically how they qualify for this reduced withholding benefit. United States withholding entities may continue to accept the prior version of IRS Form W-8BEN-E until October 2016. However, after October 2016, all foreign entities must submit the 2016 version of the form. For more information, please contact a member of the Haynsworth Sinkler Boyd Economic Development team.
New DHS Proposed Rule May Benefit International Entrepreneurs

On August 31, 2016, the Department of Homeland Security (DHS) proposed new regulatory provisions that may benefit international entrepreneurs. The proposed rule would allow DHS to use its existing discretionary parole authority to temporarily admit international entrepreneurs of start-up entities, on a case-by-case basis, whose entry into the US would provide a significant public benefit through the substantial and demonstrated potential for innovation, rapid business growth, and job creation.  HSB attorney Garrett Steck provides more information on the proposed rule here.
Defend Trade Secrets Act

On May 11, 2016, President Obama signed into law the Defend Trade Secrets Act of 2016 ("DTSA"), which provides a federal, civil cause of action for misappropriation of a trade secret. This opens up federal courts to trade secret owners even without a separate basis for federal jurisdiction, provided that the trade secret "is related to a product or service used in, or intended for use in, interstate or foreign commerce." For more information, see Haynsworth Sinkler Boyd attorney Denny Major's article here .
ITIN Changes: Renewals Begin in October

In early August, the IRS announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program, which result from enactment of the Protecting Americans from Tax Hikes Act of 2015. The changes require some taxpayers to renew their ITINs beginning in October.
Manufacturing Gets an "A"

The 2016 Manufacturing & Logistics Report Card gave South Carolina an "A" for the health of its manufacturing sector. SC was one of only five states to receive this top grade. For more information, please see this blog post from SC Economic Developers' Association.
US DOC Says Banner Year for Foreign Direct Investment
According to the International Trade Administration of the US Department of Commerce, 2015 was a "banner year" for inward flow of Foreign Direct Investment in the United States. The US continues to have strong relationships with the United Kingdom, Japan, Canada, and Germany, and the top four fastest-growing sources of FDI are Argentina, Chile, China, and Malaysia. For more information, see the ITA's report: here .
FLSA Overtime Rules - Are You Compliant?

Haynsworth Sinkler Boyd's Employment attorneys have closely monitored and continued to receive inquiries regarding the new rules that will take effect on December 1, 2016, regarding who is exempt from the Fair Labor Standards Act's overtime rules. As the effective date looms, the clock is ticking for employers to ensure they will be in compliance under the new rules, which are forcing many employers to make changes. Determining the best option for compliance depends on a number of case specific factors, and understanding the new rule is essential for choosing the best option. Click here to read more about these changes.
HSB Economic Development Attorneys Earn Recognition

Congratulations to Will Johnson on receiving the 2016 American Bar Association "On the Rise - Top 40 Young Lawyers Award" and being named one of six ABA Young Lawyers Division 2016 "Stars of the Year."

Edward Kluiters (International Law) was recognized in the Columbia Business Monthly's 2016 Legal Elite of the Midlands.
Frank Davis (International Law) and Philip Land (Government Affairs Law) were recognized in the Greenville Business Magazine's 2016 Legal Elite of the Upstate. 

Congratulations to Julie Medich for being named to the Board of Directors for the Liberty Fellowship. She joins six other leaders from across South Carolina as part of the new Board, with co-founder Hayne Hipp serving as Chair Emeritus.

Best Lawyers®, a legal peer-review guide, named 11 Haynsworth Sinkler Boyd attorneys as "Lawyer of the Year" in their respective metropolitan area and practice.

Congratulations to Edward Kluiters on being named Best Lawyers' 2017 Columbia, SC Economic Development Law "Lawyer of the Year."

The following Economic Development team members were also selected for inclusion in the 2017 Best Lawyers in America©:

Julie Medich - Corporate Law, Mergers & Acquisitions Law (Charleston)
Will Johnson - Tax Law (Columbia)
Edward Kluiters - Economic Development Law, Project Finance Law, Public Finance Law (Columbia)
Gary Morris - Corporate Law, Real Estate Law (Columbia)
Ben Zeigler - Economic Development Law (Florence)
Frank Davis - Commercial Litigation Law, Corporate Law, Economic Development Law, Tax Law (Greenville) | Charleston | Columbia | Florence | Greenville | Myrtle Beach

Edward G. Kluiters, Economic Development Group Leader | 1201 Main Street, 22nd Floor, Columbia, SC 29201