Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-12-2015, 06:22 PM
Junior Member
 
Join Date: Sep 2015
Posts: 8
foreign withholding tax

I am the sole shareholder of a Delaware C-Corp. Revenues are generated off-shore in China and Germany. Our services are also offshore - we just use a US bank account. These are no US operations aside from our mailing address in California

What forms do we have to fill out (W9, etc). to pay a vendor in Malaysia who worked for us on a project in China? The vendor will be paid from our US bank account.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-13-2015, 05:39 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,231
Quote:
Originally Posted by sungmbh View Post
I am the sole shareholder of a Delaware C-Corp. Revenues are generated off-shore in China and Germany. Our services are also offshore - we just use a US bank account. These are no US operations aside from our mailing address in California

What forms do we have to fill out (W9, etc). to pay a vendor in Malaysia who worked for us on a project in China? The vendor will be paid from our US bank account.
You, as a payer, DO NOT fill out a W8BEN for the vendor in Malaysia, and neither does the Malaysian vendor UNLESS the vendor was physically presented in US or the vendor’s services are provided inside the US.However, the Malaysian vendor can fill it out for you as there is no penalty in filling out the form W8BEN.But actually as said, the vendor does not need to fill out the form W8BEN since the income the vendor receives is NOT from US sources. So you , as a payer, DO NOT need to withhold 30% of US tax on the payments made to the foreign vendor for the vendor overseas. The vendor does not need to file his return with the IRS either. So you do not even need to fill out a W9 to pay the foreign vendor since he does not need to file his return with the IRS on the payments from you .This means that the foreign vendor does not even need an ITIN from the IRS. Also, You do not send a 1099 to the foreign vendor so you do not need to submit 1099/1096 to the IRS either.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
(Sec 1441 NRA foreign withholding tax) Balu C-Corporation 3 12-29-2013 02:20 AM
How does a Partnership pay the Foreign Withholding Taxes attributable to Foreign Partners? TaxGuru Limited Liability Company 0 05-06-2013 02:47 PM
California State Announces reduced "Withholding for Foreign Partners." TaxGuru California 0 08-16-2011 07:48 PM
What is IRS Form 1042-S Annual Withholding Tax Return for U.S. Source Income of Foreign Persons? TaxGuru Income 0 07-06-2011 05:35 PM
The IRS announces rules on "Withholding on Foreign Partners". TaxGuru For 2009 0 06-18-2009 12:16 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning