Navigating FATCA Compliance with Passthru Payment Solutions

FATCA imposes a 30% withholding tax on “withholdable payments ... payments received by the custodian (“foreign pass-thru payments”)); and ... implement FATCA, these proposed regulations further extend the time for withholding on foreign passthru payments. Accordingly, under ... Withholding on foreign passthru payments serves important purposes. ... Despite being attributable to the U.S. source payment, the payment made to ... For example, if an entity is classified as an Exempt Beneficial ... passthru payments. This withholding will now not be required before ... The Notice requires an FFI to "publish" its passthru payment percentage by, for example, making the percentage available on the FFI's website ( ... Each of these calculations is discussed below. B. Passthru Payments – In General. We understand and support the view that FATCA is a reporting ... Remove withholding on payments of gross proceeds; · Defer withholding on foreign passthru payments; · Eliminate withholding on certain insurance ... FATCA withholding may be required for "foreign pass-through payments", which are expected to be the subject of future U.S. guidance. 11. What are the ... Unless future guidance limits the scope of passthru payments, they may capture transactions that are unconnected to U.S.-sourced income. For ... FATCA provisions generally apply to two defined payment types: • Withholdable payments; and. • Pass-thru payments. However, FATCA withholding is not required ...