FATCA Insight: Grappling With Cross-Border Payments

Law360, New York (February 13, 2013, 12:57 PM EST) -- Under the Foreign Account Tax Compliance Act, U.S. companies will have to withhold 30 percent of payments to foreign companies from U.S. sources under agreements signed after 2013, even in cases where there would not otherwise be any withholding tax.

This new withholding regime is a stick designed to force foreign financial institutions that receive payments to provide information about their U.S. account holders to the U.S. tax authorities. The stick is also supposed to force other foreign business entities to disclose any significant U.S. partners...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.