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    Marika2010's Avatar
    Marika2010 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 17, 2010, 12:34 PM
    Should I deduct tax to a consultant fee based abroad? I will deposit on her us bk acc
    I am a US based consultant who started subcontracting consultants abroad. I will start making payments to one of them who is living in another country but has an US bank account. I wonder if there is any tax liability for me if the contractor does not pay taxes.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #2

    Aug 17, 2010, 06:59 PM

    Is the payment for services or for some other type of transaction?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Aug 18, 2010, 02:22 AM

    If you are making payment for services to a foreign alien, the income of the foreign alien is not taxable in the U.S. You do not need to withhold any taxes. Get W8-BEN from the foreign sub-contractor.
    Marika2010's Avatar
    Marika2010 Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Aug 25, 2010, 02:22 PM

    The payment is for services. Thank you
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Aug 26, 2010, 12:44 PM
    Agreed; no U.S. taxes are due.

    You MAY want to check if there is a requirement to submit a tax report to the tax ministry of the sub-contractor's home country.
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