Empowering Compliance A Guide to FATCA Pass-Through Payments for 2017

With respect to withholding on passthru payments, the Proposed Regulations indicate that withholding will occur no earlier than January 1, 2017, ... passthru payments starting in 2017. II. Grandfathered obligations ... as any withholdable payment and any foreign passthru payment; however, they ... Under prior FATCA regulations, a 30 percent withholding tax was required on payments of gross proceeds to certain foreign entities made after ... Further Suspension of Potential “Foreign Passthru Payment” Withholding. FATCA provides that certain payments by an FFI to a non-compliant ... This obligation was included as a temporary solution to the requirement to withhold on 'foreign passthru payments' which is included in the US provisions. Under ... ... 2017: Beginning of withholding tax on other US payments (gross proceeds…). What is the FATCA? Participating Foreign Financial Institutions (PFFI) ... U.S. withholding tax will apply to foreign passthru payment to a recalcitrant account holder or a nonparticipating FFI that is made after the ... Importantly, from 1 January 2017,. Participating FFIs must deduct withholding on payments to non-participating or uncooperative FFIs (“passthru payments”) and ... A passthru payment that is a withholdable payment would be subject to FATCA ... payments made before January 1, 2017. Instead ... Now, the fact is that the passthru payment concept has essentially been deferred until 2017, and even then, it's final form will need to be substantively ...