FATCA Passthru Payment Withholding Explained Implications and Mitigation Strategies

(1) Withholding. A participating FFI is required to deduct and withhold tax with respect to payments made to recalcitrant account holders and nonparticipating ... ... foreign-to- foreign payments not subject to withholding under Fatca. Similarly, any payment of interest or dividend from Côte d'Azur to the US tax evader. In the case of an FFI that seeks to avoid withholding tax on a payment ... FATCA withholding on gross proceeds and “passthru” payments remains ... In order for an FFI to be treated as a participating FFI, it must also agree to withhold on passthru payments to recalcitrant account holders ... The table below shows regulations, rulings, notices, announcements, and other FATCA-related guidance or requirements. Under FATCA, participating foreign financial institutions (FFIs) must agree to withhold at the 30% rate on foreign passthrough payments made to ... ... F.A.T.C.A. Thus, to prevent the use of “F.A.T.C.A. blockers,” F.A.T.C.A. imposes a withholding tax on foreign pass-thru payments. Although the proposed ... The elimination of FATCA withholding on gross proceeds and non-cash insurance premiums that are described above also apply to payments made to ... 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 ... imposes withholding on so-called foreign passthru payments. Withholding does not apply to on payments to a financial institution that ...