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Understanding tax withholding for foreign vendors providing services in the U.S.
March 20, 2024
Q. If a foreign vendor perform service in US, is it regardless of the tax status and 30% withholding taxes (or less depends on the service types) need to be withhold?
A.
Answered by IOFM's third-party tax experts.
30% U.S. federal income tax withholding is required when paying a foreign individual or a foreign entity (a company or other organization) for a service they did for your organization here in the U.S. ... UNLESS that foreign payee has given your organization a Form W-8BEN, W-8BEN-E or…
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