Unlocking Cross-Border Payments Passthru Payments and FATCA

(For example, as US Persons,. Foreign Financial Institutions or Non-Financial Foreign. Entities). • Report information to the IRS or local tax authority on all ... 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 ... FATCA withholding generally will be required on payments made to FFIs after 2013 and will be required on certain passthru payments made after ... (for example) ... ▫ Should generally neither be subject to FATCA withholding on payments they receive, nor required to apply passthru. In addition to withholding tax payable on 'withholdable payments', a withholding tax will also be applied to 'passthru' payments made by an FFI ... FATCA provisions generally apply to two defined payment types: ( 1) Withholdable Payments and (2) Passthru Payments. However, FATCA withholding is not required ... apply FATCA withholding on passthru payments to others. Under the ... For example, a PFFI that is a bank would be required to withhold ... Under FATCA, participating foreign financial institutions (FFIs) must agree to withhold at the 30% rate on foreign passthrough payments made to ... Treatment of Passthru Payments. The Parties are committed to work together, along with Partner Jurisdictions, to develop a practical and ...