Empowering Taxpayers A Simplified Guide to FATCA Passthru Payment Withholding

However, Participating FFIs generally will be required to report (but not withhold on) foreign passthru payments made to non-Participating FFIs. Background · Removing FATCA withholding on payments of gross proceeds from the regulations · Deferring withholding on foreign pass-through ... That means that. FATCA withholding could apply to a termination payment on an NPC even where ... defining foreign passthru payments are issued. We ... (1) Withholding. A participating FFI is required to deduct and withhold tax with respect to payments made to recalcitrant account holders and nonparticipating ... Under prior FATCA regulations, a 30 percent withholding tax was required on payments of gross proceeds to certain foreign entities made after ... Foreign passthru payments made to recalcitrant account holders and nonparticipating FFIs by a participating FFI are also subject to withholding; ... As mentioned above, the proposed regulations eliminate withholding on gross proceeds and defer withholding on passthru payments. Taxpayers ... The proposed rules eliminate withholding on payments of gross proceeds and certain insurance premiums, defer withholding on foreign pass-thru ... Withholding may also apply to non-US source payments because of the concept of 'passthru payments' (see below). How to avoid the withholding tax. In the case of an FFI that seeks to avoid withholding tax on a payment ... FATCA withholding on gross proceeds and “passthru” payments remains ...