Unveiling FATCA Passthru Payment Withholding Essential Information for Non-US Entities

Participating FFIs must withhold on any passthru payments made to their recalcitrant account holders and to nonparticipating FFIs. Similar to ... FATCA withholding for U.S. source gross proceeds will begin January 1, 2017. Passthru payments will become subject to FATCA withholding no earlier than January ... 1474, commonly referred to as FATCA) requires withholding agents to withhold 30% of certain payments to a foreign financial institution (FFI) ... January 1, 2019: Withholding on “foreign passthru payments” will become effective the later of January 1, 2019 or the date of publication of the ... 1 The withholding requirement applies to payments to FFIs and certain nonfinancial foreign entities (NFFEs). FATCA also imposes requirements on ... Eliminate U.S. withholding under FATCA on payments ... Impose passthru payment withholding on payments to recalcitrant account holders, to. Participating FFIs will be required to report Passthru Payments2 beginning January 1, 2015 but will not be required to withhold on Passthru Payments prior to ... ... payments (known as “withholdable payments”),. FATCA will ultimately also impose a withholding tax on “foreign passthru payments”, which are ... ... withholding on foreign pass thru payments, eliminating withholding on certain insurance premiums, and clarifying the definition of investment The tax is imposed on the person making the payment to the foreign person, and this payor is often a US financial institution; the payor/withholding agent has ...