FATCA Regulations on Cross Border Financing - IPBA 2012

More documents

Recommendations

Info

Procedures to Identify and Withhold on Pass thruPayments‣ A participating FFI must also agree to deduct and withhold a tax equal to 30% on:• any “pass thru payment” which is made by the FFI to a “recalcitrant accountholder” or another FFI which does not have an agreement in place; and• in the case of any pass thru payment made to another FFI which has made anelection to be withheld upon, so much of such payment as is allocable toaccounts held by recalcitrant account holders or FFIs which do not have anAgreement in place.‣ Interim guidance sets forth the IRS’ first attempt at establishing rules fordetermining when payments made by an FFI are “attributable” to withholdablepayments received by the FFI. In general, this “pass thru” payment calculationwill need to be made on a quarterly basis, based on the relative percentage of theFFIs U.S. assets to total assets (a so-called “pass thru payment percentage”).• This is very complicated and most commentators expect to see refinement inthe next round of guidance.‣ Participating FFIs will be required to make their pass thru payment percentageavailable to the public on a website or other publicly accessible database.gsblaw.com 24
Working with Persons Making Payments Subject to <strong>FATCA</strong>gsblaw.com 25
Page 1 and 2: FATCA Regu
Page 6: Key Withholding RequirementsWithhol
Page 9: Glossary of General Terms‣ Non-Fi
Page 12 and 13: Key Terms Related to “Foreign Fin
Page 14 and 15: Phased Implementation‣ On July 14
Page 16 and 17: FFI and NFFE Compliance Requirement
Page 18 and 19: 5-Step Procedure for Identification
Page 20 and 21: Private Banking Clients‣ Special
Page 22 and 23: Reporting on U.S. Accounts and Owne
Page 26 and 27: Payors of Withholdable Payments Lia
Page 28 and 29: Updating Internal Systems‣ Payor
Page 30 and 31: Withholding Scenarios for FFIsSCENA
Page 32 and 33: Interaction with NRA Withholding Ru
Page 34 and 35: FATCA and U.S. Inc
Page 36 and 37: Withholding on U.S. Equity Swaps‣
Page 38 and 39: Notional Principal Contracts‣ An
Page 40 and 41: Specified Notional Principal Contra
Page 42 and 43: Liability of Withholding Tax‣ Wit

FATCA Regulations on Cross Border Financing - IPBA 2012

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?