Unveiling the Secrets of FATCA Passthru Payments for International Businesses in 2019

Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to work together, along with Partner Jurisdictions, to develop ... The regulations provided that withholding on Passthru. Payments will not begin before the later of January 1, 2019, or the date the final reg-. First, it eliminates Foreign Account Tax Compliance Act (“FATCA”) withholding on gross proceeds. Second, it pauses withholding on pass-through ... Second, withholding on foreign passthru payments prevents nonparticipating FFIs from avoiding FATCA by investing in the. United States through a ... The Proposed Regulations would defer the withholding requirement on a Foreign Passthrough Payment made to nonparticipating FFIs or recalcitrant ... Such an FFI would be treated as a. Participating FFI (PFFI). 8. What are the consequences to an FFI of not complying with FATCA? Non-compliance potentially ... A “passthru payment” is defined in the regulations to mean a withholdable payment and any foreign passthru payment. The FATCA regulations ... In September 2015, the US IRS announced that withholding on foreign passthru payments would not apply until 1 January 2019 at the earliest. 2 In addition to complying with the reporting and diligence procedures, a participating FFI is required to withhold 30% of any "passthru" payments that it makes ... ... payments of gross proceeds, deferred withholding on foreign pass thru payments, eliminated withholding on certain insurance premiums, and clarified the ...