Unveiling the Impact of FATCA Passthru Payment Withholding on International Transactions

FATCA creates a new information reporting and withholding regime for payments made to certain foreign ... In addition, an FFI must withhold 30% on any passthru ... C. Impose passthru payment withholding on payments to other FFIs organized in the FATCA treaty partner or in another jurisdiction with which the United. (C) A foreign passthru payment subject to withholding under chapter 4. (ii) ... FATCA Report,” regardless of whether withholdable payments are made to such ... ... withholding agent with respect to such payment shall deduct and ... (7) PASSTHRU PAYMENT- The term passthru payment means any withholdable payment or other. ... payments (known as “withholdable payments”),. FATCA will ultimately also impose a withholding tax on “foreign passthru payments”, which are ... 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 ... 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 ... If a withholding agent has knowledge of the facts that give rise to a payment but is unable to determine at the time of payment the source of the payment, such ... January 1, 2019: Withholding on “foreign passthru payments” will become effective the later of January 1, 2019 or the date of publication of the ... That means that. FATCA withholding could apply to a termination payment on an NPC even where ... defining foreign passthru payments are issued. We ...