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Glossary term

Passive NFFE

A passive NFFE is a non-financial foreign entity deriving more than 50% of its income from passive sources (e.g., dividends, interest). FATCA requires passive NFFEs to disclose their substantial U.S. owners or face 30% withholding on U.S.-source payments, closing a key loophole for hidden U.S. ownership.

All terms beginning with P

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