Revolutionizing FATCA Passthru Payments Innovative Strategies for 2019

In September 2015, the US IRS announced that withholding on foreign passthru payments would not apply until 1 January 2019 at the earliest. FATCA requires Foreign Financial Institutions (FFIs) to report to the US Internal Revenue Service (IRS), information on assets of US$50,000 or more held by US ... ... 2019; (ii) extends the date for beginning of withholding on foreign passthru payments to January 1, 2019 (at earliest); (iii) extends ... ... passthru payments (until 2 years after the definition of such payments appears in final regulations), (3) elimination of withholding on non ... Although FATCA was enacted in 2008, the IRS extended several FATCA related effective dates and in particular extended until January 1, 2019, the ... Remove withholding on payments of gross proceeds; · Defer withholding on foreign passthru payments; · Eliminate withholding on certain insurance ... THIS AGREEMENT is dated 26 March 2019 ... in relation to a “passthru payment” described in ... ” means a deduction or withholding from a payment under a Finance ... alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden. ... th day of May, 2019. The IRS has issued proposed new regulations that will further delay the imposition of withholding tax on foreign passthru payments. Under the tax code, entities that fail to comply with FATCA may be subject to a 30% withholding tax on (i) U.S.-source income, (ii) gross proceeds from the sale ...