Empowering Businesses with FATCA Foreign Passthru Payment Knowledge

The final regulations, like the proposed regulations, do not define foreign-source passthru payments,11 and provide that withholding on foreign- ... The Fatca draft regulations provide that foreign passthru payments are passthru payments that are not withholdable payments. This must mean, therefore, that ... (7) PASSTHRU PAYMENT- The term passthru payment means any withholdable payment or other payment to the extent attributable to a withholdable payment. (e) ... In general, a withholding agent is required to withhold 30% on a withholdable payment made to a. Foreign Financial Institution (FFI) or to a Non-Financial ... What is a FFI? Foreign Financial Institutions (FFIs) are defined as entities that are not resident in the U.S.A. for tax purposes and that:. The regulations reserve on the definition of a foreign passthru payment, but do provide that a participating FFI does not have to withhold ... FATCA has a specific definition for financial institution that may be broader than the definition ... The approach to become a FATCA-compliant FFI depends ... ... definition of the term withholdable payment means any payment ... foreign passthru payment. 2. EXTENSION OF LIMITED BRANCH AND LIMITED ... 1474, commonly referred to as FATCA) requires withholding agents to withhold 30% of certain payments to a foreign financial institution (FFI) ... Under FATCA, certain US taxpayers and foreign financial institutions (FFIs) must report information on financial accounts held by US taxpayers ...