FATCA Passthru Payment Withholding Essential Considerations for Tax Professionals

subject to withholding tax of 30% on certain payments received by them. 2. Does FATCA replace the existing U.S. tax withholding and reporting regimes? No ... (C) A foreign passthru payment subject to withholding under chapter 4. (ii) ... FATCA Report,” regardless of whether withholdable payments are made to such ... PFFI. Participating Foreign Financial Institution as defined in the US FATCA regulations ... withholding prior to making a payment);. •. Interests not issued by ... January 1, 2019: Withholding on “foreign passthru payments” will become effective the later of January 1, 2019 or the date of publication of the ... ... withholding agent with respect to such payment shall deduct and ... (7) PASSTHRU PAYMENT- The term passthru payment means any withholdable payment or other. 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 ... 8488, March 8, 2019, the IRS scheduled an April 10 public hearing on the following proposed regulations eliminating withholding on payments of ... (1) Withholding. A participating FFI is required to deduct and withhold tax with respect to payments made to recalcitrant account holders and nonparticipating ... Participating FFIs must withhold on any passthru payments made to their recalcitrant account holders and to nonparticipating FFIs. Similar to ... Withholding may also apply to non-US source payments because of the concept of 'passthru payments' (see below). How to avoid the withholding tax.