Simplifying FATCA Passthru Payment Withholding A Practical Guide

Here, FATCA imposed withholding to on these “foreign pass-through payments” so that U.S. citizens could not avoid U.S. taxation by moving money ... 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 ... The Proposed Regulations would defer the withholding requirement on a Foreign Passthrough Payment made to nonparticipating FFIs or recalcitrant ... Specifically, the proposed regulations eliminate withholding on payments of gross proceeds, defer withholding on foreign passthru payments ... FATCA provisions generally apply to two defined payment types: • Withholdable payments; and. • Pass-thru payments. However, FATCA withholding is not required ... of the obligations under US Foreign Account Tax Compliance Act (FATCA) ... impose passthru payment withholding to or close the account of any. The proposed rules eliminate withholding on payments of gross proceeds and certain insurance premiums, defer withholding on foreign pass-thru ... 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 agent with respect to such payment shall deduct and ... (7) PASSTHRU PAYMENT- The term passthru payment means any withholdable payment or other. A withholding. Agent is required to withhold 30.0 per cent of any passthru payment made to a non- participating FFI. The underlying purpose of the passthru ...