Unlocking the Secrets of FATCA Passthru Payment Withholding for Businesses

Withholding on Withholdable Payments consisting of U.S.-source dividends, interest and certain other income is required commencing January 1, ... 1474, commonly referred to as FATCA) requires withholding agents to withhold 30% of certain payments to a foreign financial institution (FFI) ... The proposed regulations provide that withholding will not be required with respect to foreign source passthru payments paid to nonparticipating FFIs and ... withholding on “Passthru” payments (income payments from an FFI to a foreign individual or entity who has not complied with FATCA requirements) will begin ... ... withholding agent with respect to such payment shall deduct and ... (7) PASSTHRU PAYMENT- The term passthru payment means any withholdable payment or other. FATCA generally applies to two defined payment types: 1) Withholdable Payments and 2) Passthru. Payments. However, FATCA withholding is not required with ... The. Proposed Regulations would defer the withholding requirement on a Foreign Passthrough Payment made to nonparticipating FFIs or ... Under prior FATCA regulations, a 30 percent withholding tax was required on payments of gross proceeds to certain foreign entities made after ... However, a domestic fund does need to determine if its limited partners are subject to FATCA withholding. ... foreign passthru payment. Participating FFIs will. 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- ...