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Withholding on payment to Hong Kong vendor
October 3, 2024
Q. We have a vendor that we have a royalty agreement with (use of trademark on product). I am wanting to confirm that that we should be withholding 30% on these types of payments since there is no tax treaty with Hong Kong.
A.
(Answered by IOFM's third-party tax experts)
Because there is no tax treaty between the U.S. and Hong Kong, you would withhold 30% U.S. federal income tax at the time of payment if the income is U.S.-sourced (such as for the use of a copyrighted item here in the U.S.) and…
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