Unveiling FATCA Pass-Through Payments Your Essential Guide for 2017

Potential 30% withholding tax is payable on all interest and fees (and from January 2017 on principal) paid by US borrower and paid from US ... ... 2017: Beginning of withholding tax on other US payments (gross proceeds…). What is the FATCA? Participating Foreign Financial Institutions (PFFI) ... Thus, a nonparticipating foreign fund could be subject to 30% withholding on any foreign-source passthru payments that it receives from a participating foreign ... FATCA seeks to accomplish this goal by requiring foreign ... Delay withholding on foreign "passthru payments" until at least 2017. able payments and (beginning no earlier than 1 January 2017) foreign passthru payments paid to a client that is not FATCA-compliant. Foreign passthru ... ... foreign passthru payments before January 1, 2017. Instead, until withholding applies, to reduce incentives for nonparticipating FFIs to use participating ... The Regulations further provide, as noted above, that an obligation will not give rise to a foreign passthru payment if it is entered into on or ... The rules for defining a pass-through payment are expected to be enormously complex, and administratively burdensome to implement. U.S. Treasury ... This is linked to the reporting requirements, which do not mandate the reporting of gross proceeds until some point in 2017, under Article 2. Fatca preparation ... PFFI. Participating Foreign Financial Institution as defined in the US FATCA regulations ... 2017. The fund should also perform pre-existing account due ...