Passthru Payments and FATCA A Step-by-Step Guide

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 ... would subject passthru payments to withholding only if they are directly traceable to withholdable payments. Treasury felt that a direct tracing approach ... Foreign Passthru Payments. Withholding on "foreign passthru payments" (on which the definition of which the Final Regulations continue to ... FATCA imposes a 30% withholding tax on “withholdable payments ... payments received by the custodian (“foreign pass-thru payments”)); and ... FATCA provisions generally apply to two defined payment types: ( 1) Withholdable Payments and (2) Passthru Payments. However, FATCA withholding is not required ... Remove withholding on payments of gross proceeds; · Defer withholding on foreign passthru payments; · Eliminate withholding on certain insurance ... The final regulations, like the proposed regulations, do not define foreign-source passthru payments, and provide that withholding on foreign-source passthru ... Each of these calculations is discussed below. B. Passthru Payments – In General. We understand and support the view that FATCA is a reporting ... 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 ...