Demystifying FATCA Passthru Payments A Simplified Approach for International Businesses in 2019

Under FATCA, participating foreign financial institutions (FFIs) must agree to withhold at the 30% rate on foreign passthrough payments made to ... Participating FFIs must withhold on any passthru payments made to their recalcitrant account holders and to nonparticipating FFIs. Similar to ... ... foreign passthru payments. These provisions represent a significant burden reduction for SIFMA member firms complying with FATCA. There are ... When enacted, FATCA was projected by the Joint Committee on. Taxation to raise $1 billion in revenues per year by 2019, which is a small share ... Withholding on foreign passthru payments serves important purposes. ... Despite being attributable to the U.S. source payment, the payment made to ... effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden. 3 ... Elimination of foreign passthru payment withholding · The Treasury and IRS efforts in promoting FATCA have achieved a wide global coverage of IGAs, including ... Although FATCA was enacted in 2008, the IRS extended several FATCA related effective dates and in particular extended until January 1, 2019, the ... Second, withholding on foreign passthru payments prevents nonparticipating FFIs from avoiding FATCA by investing in the. United States through a ... January 1, 2019: Withholding on “passthru payments” will become effective the later of January 1, 2019 or the date of publication of the final regulations ...