FATCA FAQ: Local law does not allow me to collect taxes for a foreign government. If the U.S. expects me to make FATCA withholding on a recalcitrant account holder, what can I do?
|January 27, 2012||Filled under FAQ, FATCA, United States|
An FFI might make an election to have the withholding agent (or another FFI making the payment) do the withholding on payments allocable to accounts held by recalcitrant account holders or FFIs which do not have a valid FFI agreement in place. If an FFI makes this election, it will need to provide the withholding agent with the information required for the withholding agent to determine the appropriate amount to withhold. Additionally, the FFI will need to waive any right under any U.S. tax treaty with respect to any amount withheld.