Tax deduction on foreign company invoice
Hi,
I have a S-Corp which is mainly engaged in web site design and software development for US customers. I am going to sign an agreement with a foreign company located in India for web site design works. Foreign company will invoice me for the services. All work will be performed outside the US.
Questions:
1) do I require to deduct US tax on the invoice payments?
2) If so, what is the process?
I will appreciate your advice or guide me to related IRS topics.
Thank you.