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    jlaroche's Avatar
    jlaroche Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 12, 2007, 02:00 PM
    TAX Deductions for FOREIGN company invoicing services in the US
    I would appreciate a bit of advice in the following situation:
    There is a foreign company that will perform consulting services for a U.S. company, when this foreing company invoices its services, will it suffer a TAX deduction from the paying client (US Company)?

    Thanks for the help.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 15, 2007, 10:29 AM
    The U.S. company CAN claim a tax deduction for payment for services rendered by a foreign company, as long as the foreign company is identified as the recipient of the payment to both the IRS and the foreign company's home country tax authority.
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