Glossary term

Withholdable Payment

This term has 2 definitions.

1. A “withholdable payment” includes U.S.-source interest, dividends, and gross proceeds from asset sales generating U.S. income. Under FATCA, such payments to non-compliant FFIs or recalcitrant account holders incur a 30% withholding tax aimed at enforcing offshore transparency.

2. A withholdable payment includes U.S.-source income such as interest, dividends, rents, royalties, or gross proceeds from property sales. FATCA mandates 30% withholding on such payments to non-compliant FFIs or recalcitrant account holders, ensuring tax transparency and closing offshore tax evasion gaps.

All terms beginning with W