Demystify Passthru Payments and FATCA A Step-by-Step Approach

Background · Removing FATCA withholding on payments of gross proceeds from the regulations · Deferring withholding on foreign pass-through ... 1, 2014 with transitional relief for payments of gross proceeds and passthru payments. 5. November 2013. Page 6. PwC. ➢ The objective of FATCA ... In addition to withholding tax payable on 'withholdable payments', a withholding tax will also be applied to 'passthru' payments made by an FFI ... FATCA compliant. Passthru payments include withholdable payments and, beginning no earlier than 1 January 2017,. "foreign passthru payments". For example, Form 5471 is used to report certain direct, ... This is the so-called concept of "passthru payments," defined at Treas. Under FATCA, payments of US source income to FFIs are subject to a 30% withholding tax unless the FFI is a participating FFI or otherwise exempt from ... In addition, an FFI must withhold 30% on any passthru payment it makes to a recalcitrant account holder, as well as to payments it makes to another FFI unless. Under the proposed regulations, gross proceeds from the sale or other disposition of an asset will not be subject to FATCA withholding, and passthru payments ... ... passthru payments" but are not otherwise subject to FATCA withholding. ... example, that an FFI is a participating FFI or a registered ... FATCA Regs: Investment Entity Definition Clarified & Gross Proceeds Withholding Eliminated · Extend the time for withholding on foreign passthru ...