The Definitive Guide to FATCA Passthru Payment Withholding for Tax Professionals

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- ... ... FATCA reporting and passthru payment withhold ... on the question of foreign passthru payment withholding,23 stated that foreign financial institu ... FATCA generally applies to two defined payment types: 1) Withholdable Payments and 2) Passthru. Payments. However, FATCA withholding is not required with ... FATCA provisions generally apply to two defined payment types: • Withholdable payments; and. • Pass-thru payments. However, FATCA withholding is not required ... withholding. ▫ Compliance date is January 1, 2019 for withholdable payments that are gross proceeds or “pass-thru” payments. ▫ Reporting Model 1 FFI had ... Specifically, the proposed regulations eliminate withholding on payments of gross proceeds, defer withholding on foreign passthru payments ... withholding on certain payments (“Withholdable Payments”). ... Deferral of FATCA Withholding on Foreign Pass-thru Payments: “Foreign Pass-thru. with FATCA's reporting, withholding, and account closure requirements. ... foreign pass thru payments until January 1, 2017, two years later than in. which would thus not be subject to withholding before the foreign passthru payment ... • To properly allocate any FATCA withholding tax ... Additionally, PFFIs must withhold 30 percent of any passthru payment to a nonparticipating FFI or account holders who refuse to release their.