Information Reporting and Withholding
On July 24, 2013, Deloitte hosted a Dbriefs webcast entitled, “Information Reporting and Withholding: A Potentially Significant Liability.” Questions received during the webcast are listed in the attachment, along with responses.
Sample question and answer
Question: How does Foreign Account Tax Compliance Act (FATCA) apply to an existing treaty that the U.S. may have with another foreign country?
Answer: FATCA withholding is imposed before NRA withholding. It is a flat 30% if there is a failure to document. If FATCA withholding does not apply, NRA withholding may apply and treaty rates would be applicable.
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