Expert Insights FATCA Passthru Payments Made Simple (2019)

Extension of FATCA Transitional Rules for Gross Proceeds, Foreign Passthru Payments ... Withholding on Foreign Passthru Payments delayed until 2019, 11, 1471(b)(1 ... The regulations reserve on the definition of a foreign passthru payment, but do provide that a participating FFI does not have to withhold on a foreign passthru ... U.S. withholding tax will apply to foreign passthru payment to a recalcitrant account holder or a nonparticipating FFI that is made after the ... Deduct and withhold a 30% tax on any “passthru payment” to recalcitrant account holders or other FFIs that are not PFFIs, deemed compliant ... 1. EXTENSION OF DATES FOR WHEN WITHHOLDING BEGINS FOR PAYMENTS OF GROSS PROCEEDS AND PASSTHRU PAYMENTS · 2. EXTENSION OF LIMITED BRANCH AND ... First, it eliminates Foreign Account Tax Compliance Act (“FATCA”) withholding on gross proceeds. Second, it pauses withholding on pass-through ... Withholding on foreign passthru payments serves important purposes. ... Despite being attributable to the U.S. source payment, the payment made to ... ... payment and any foreign passthru payment. The ... 2019, or the date of publication in the Federal ... FATCA partner jurisdictions in implementing the information ... Additionally, FATCA imposes a 30% withholding tax on Withholdable Payments and. Passthru Payments made to certain non-U.S. entities that are not FFIs ("Non- ... Withholding on payments of gross proceeds would be removed from the regulations; · There would be a deferral of withholding on foreign pass thru ...