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View Full Version : Taxation of foreign contractors


pron0010
Dec 5, 2006, 07:06 PM
How do I tax foreign contractors working from outside the US for a US Corporation?

How do I show it in the books?

AtlantaTaxExpert
Dec 6, 2006, 04:25 PM
U.S. taxes do not apply to foreign citizens working outside the United States, even if the corporation is U.S.-based. The local tax laws do apply, however.

You show the salary paid as salary and taxes collected and paid as taxes.