Demystifying FATCA Pass-Through Payments A Clear Guide for 2017

With respect to withholding on passthru payments, the Proposed Regulations indicate that withholding will occur no earlier than January 1, 2017, ... Additionally, FATCA imposes a 30% withholding tax on Withholdable Payments and. Passthru Payments made to certain non-U.S. entities that are not FFIs ("Non- ... In 2010, Congress passed the Foreign Account Tax Compliance Act (FATCA), to reduce tax evasion by US taxpayers holding funds in foreign accounts. withholding and reporting. Jan. 1, 2017. Start of FATCA withholding on gross proceeds payments. Earliest date to apply expanded withholding pass thru payments ( ... FATCA withholding generally will be required on payments made to FFIs ... passthru payments made after January 1, 2017. Additionally ... alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden. 2. Documentation of ... This document contains proposed regulations eliminating withholding on payments of gross proceeds, deferring withholding on foreign passthru payments. effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden ... Under FATCA, a passthru payment is defined as “any withholdable payment or other ... January 1, 2017,24 and discussed the existence of the ... Foreign passthru payment. The definition of a foreign passthru payment itself is not yet defined by the FATCA law. The withholding on this ...