Hi,
I have a C-Corp which is mainly engaged in web site design and software development for US customers. I am going to outsource the design work to company outside the U.S. and foreign company will invoice me for the services. All work will be performed outside the US.

Since the payments do not required tax withholding,

1. Will I be able to deduct the expenses on these invoices on my tax return?
2. If so, would keeping copy of invoices from foreign company and proof of payments enough to support my tax position in case of audit?

Thank you!

While I do not prepare corporate returns, it seems likely to me that the answer to both questions would be YES.

Thank you for your promptly response!

Any idea where I can get advices on this matter? Appreciate your help!

Suggest you try a tax forum for corporate returns.