Empower Your Business with Passthru Payments and FATCA Compliance

FATCA provides that certain payments by an FFI to a non-compliant account holder at such FFI that are “attributable to” withholdable payments ... For example, the IRS (i) will be required to finalize revised Forms W-8 to comport with FATCA requirements,3 (ii) must release a standard FFI Agreement, (iii) ... The proposed regulations defer withholdings on pass-through payments. A pass-through payment is any payment made by a foreign financial ... If a borrower is itself a participating FFI, then there is potentially also "passthru withholding" (from 2017 at the earliest) on payments to a ... Withholding on foreign passthru payments serves important purposes. ... Despite being attributable to the U.S. source payment, the payment made to ... The second prong of the definition of pass-thru payments is what is referred ... blockers,” F.A.T.C.A. imposes a withholding tax on foreign pass-thru payments. In addition, an FFI must withhold. 30% on any pass-through payment it makes to a “recalcitrant account holder”, as well as on payments it makes ... Defer withholding on foreign passthru payments; Eliminate withholding on certain insurance premiums; Clarify the definition of investment entity ... apply FATCA withholding on passthru payments to others. Under the ... For example, a PFFI that is a bank would be required to withhold ... (4) Foreign passthru payments. A participating FFI is not required to deduct ... For example, if a relationship manager is notified that the account ...