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FATCA and Nonresident Withholding


NRA Withholding

Payments to all foreign persons, including nonresident alien individuals, foreign entities and governments, may be subject to NRA withholding. Generally, a foreign person is subject to U.S. 税 on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. 税 of 30%, unless a reduced rate, including exemption, applies.

FATCA(Foreign Account Tax Compliance Act)

FATCA isset of rules designed to assistthe IRS in collecting 税es owed by foreign persons that receive payments from U.S. 企业. It impacts nearly all non-U.S. entities that receive most types of U.S. source income. Failure to comply with FATCA withholding regulations can result in increased 税 liability, penalties and fines for non-compliance.

Under FATCA, your foreign payees are likely to be subject to the 30% withholding 税. Withholdable payments commonly include U.S. source dividends, 租金, 感兴趣, 版税, 工资, 工资, annuities or other fixed, determinable, annual or periodic income; gross proceeds from the sale or disposition of U.S. property that could produce 感兴趣 or dividends; or 感兴趣 paid by a foreign branch of a U.S. 银行.

Schneider Downs’ professionals can assist in:

  • A process to capture, track and maintain the data and documents required for FATCA reporting.
  • Filing of Form 1042 and related Form 1042-S.
  • Determining the classification of each of your foreign payees (NFFEs,FFIs, etc.).
  • Assistancecollecting, validating and managing Forms W-8as part of your FATCA compliance process.

About Schneider Downs Tax Advisors 

With one of the largest regional 税 practices in the country, Schneider Downs Tax Advisors’ personal focus on clients and in-depth understanding of current issues ensures that clients are complying with 税 filing requirements and maximizing 税 benefits. Our industry knowledge and focus ensures delivery of technical 税 strategies which can be implemented as practical business initiatives. Learn more at Tax bet9平台游戏.

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