Empowering Businesses Navigating FATCA Passthru Payment Withholding

Withholding on foreign passthru payments serves important purposes. ... Despite being attributable to the U.S. source payment, the payment made to ... The table below shows regulations, rulings, notices, announcements, and other FATCA-related guidance or requirements. Passthru payments will become subject to FATCA withholding no earlier than. January 1, 2015. 3. Who is impacted by FATCA? Any entity making a ... Participating Foreign Financial Institutions (PFFI) must therefore identify and document all accounts for clients susceptible of being US ... The elimination of FATCA withholding on gross proceeds and non-cash insurance premiums that are described above also apply to payments made to ... Under FATCA, payments of US source income to FFIs are subject to a 30% withholding tax unless the FFI is a participating FFI or otherwise exempt from ... imposes withholding on so-called foreign passthru payments. Withholding does not apply to on payments to a financial institution that ... Participating FFIs will be required to report Passthru Payments2 beginning January 1, 2015 but will not be required to withhold on Passthru Payments prior to ... The IRS has issued proposed new regulations that will further delay the imposition of withholding tax on foreign passthru payments. However, a domestic fund does need to determine if its limited partners are subject to FATCA withholding. ... foreign passthru payment. Participating FFIs will.