4.9.8 Specifying Tax Details

You can specify the following tax details:

• FATCA Waiver

  The system defaults the preference maintained at the FATCA/Chapter 3 Waiver screen. However, you can modify it.

• Grand Fathered

  Select this check box to indicate that grandfathered status should also be considered when the payments are being made under the drawdown contracts.

• Chapter 3 Waiver

  The system defaults the preference maintained at the FATCA/Chapter 3 Waiver screen. However, you can modify it.

• Grandfathered Effective Change Date

  If you have modified the Grandfathered option by amending the tranche and when the grandfathered option is changed to NO, then specify the effective date of change. If the grandfathered option is change, then authorization process undergoes dual authorization.

  The system calculates the tax based on the logic given below considering the FATCA and Chapter 3 Tax rules waiver option:
  • If a customer is FATCA compliant and Chapter 3 withholding waiver option at tranche is yes, the system does not do any withholding.
  • If a Customer is non-FATCA compliant and FATCA withholding waiver option is Yes at tranche, the system does not to any withholding.
  • Below is the combination for partial FATCA compliant cases where the system is expected to perform both types of withholding.

    Flag Value	Action
    FATCA Waiver = Y Chapter 3 Waiver = Y	No Withholding
    FATCA Waiver = Y Chapter 3 Waiver = N	No FATCA Withholding
    FATCA Waiver = N Chapter 3 Waiver = Y	No Chapter 3 Withholding
    FATCA Waiver = N Chapter 3 Waiver = N	Both tax are Withheld