FATCA Regulations on Cross Border Financing - IPBA 2012

Withholding Requirements‣ <strong>FATCA</strong> requires withholding agents to apply a 30% withholding tax onwithholdable payments to non compliant FFIs and NFFEs.• Withholding agents will have to verify payee compliance with <strong>FATCA</strong>Withholding requirements will require payors of withholdable payments, intheir capacity as withholding agents, to make determinations as to the statusof their payees for <strong>FATCA</strong> withholding tax purposes.‣ FFIs. The IRS intends to maintain a database that will permit withholding agentsto confirm whether an FFI is a participating or deemed-compliant FFI.‣ NFFEs. A withholding agent must request the NFFE to provide the payor with thename, address, and U.S. tax identification number of each substantial U.S. ownerof the NFFE, or certify that it does not have any substantial U.S. owners, unless itis an exempt NFFE (e.g., a publicly traded corporation).gsblaw.com 27