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Old 11-20-2015, 07:26 AM
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U.S Withholding Tax on Foreign Payments (1042)

Can anyone please clarify that "Repairs & Upgrades" are with holdable payment under section 1441 U.S NRA Withholding Tax (1042)? Please confirm.


Last edited by Balu : 11-20-2015 at 07:28 AM.


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Old 11-21-2015, 04:36 AM
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Originally Posted by Balu View Post
Can anyone please clarify that "Repairs & Upgrades" are with holdable payment under section 1441 U.S NRA Withholding Tax (1042)? Please confirm.
No; Form 1042 is a form that one files with the IRS to report withholding of taxes from the U.S. income, NOT expenses,i.e., repairs / upgrades deducted from gross income, earned by a foreign person.



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Old 11-21-2015, 04:57 AM
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U.S Withholding Tax

Thank you very much for your response.

Just have a question with respect to your reply -

What If the repairs are performed in the onsite United States? Would still be considered as expenses or repairing services? Please confirm.



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