Demystifying FATCA Pass-Through Payments A 2017 Compliance Handbook

After months of waiting, the Treasury Department (“Treasury”) released proposed Foreign Account Tax Compliance Act (“FATCA”) “withholdable ... FATCA withholding generally will be required on payments made to FFIs ... passthru payments made after January 1, 2017. Additionally ... Background · Removing FATCA withholding on payments of gross proceeds from the regulations · Deferring withholding on foreign pass-through ... Foreign passthru payments made to recalcitrant account holders and nonparticipating FFIs by a participating FFI are also subject to withholding; ... passthru payments starting in 2017. II. Grandfathered obligations ... as any withholdable payment and any foreign passthru payment; however, they ... ... (FATCA) regime. The proposed regulations would eliminate withholding on payments of gross proceeds, defer withholding on foreign passthru ... Under prior FATCA regulations, a 30 percent withholding tax was required on payments of gross proceeds to certain foreign entities made after ... effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden ... The February Proposed Regulations extend the date on which FATCA withholding begins on foreign pass-thru payments from 1 January 2015 to 1 January 2017. The table below shows regulations, rulings, notices, announcements, and other FATCA-related guidance or requirements.