On 15 July 2016, U.S. IRS published an international practice unit on the source of income for FDAP Payments, which are generally subject to 30% withholding if from sources within the U.S. unless an exemption or reduction applies. The practice unit covers a five-step process to determine whether payments are subject to withholding: Is the payment made to a foreign person? If yes, is the income FDAP income? If yes, is the income U.S. source income? If yes, is there any exemption from chapter three withholding (CTW) tax available? If not exempt, is there a valid claim for a reduced...