Ask Experts Questions for FREE Help !
Ask
    pron0010's Avatar
    pron0010 Posts: 1, Reputation: 1
    New Member
     
    #1

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

    How do I show it in the books?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Independent contractors - Puerto Rico [ 7 Answers ]

We have recently contracted several Sole Proprietors(US Citizens residing in Puerto Rico) to clean our facility in San Juan, Puerto Rico. While we are familiar with the standard 1099Misc reporting required for IRS reporting, we have heard that we may be required to deduct a percentage for local PR...

Query on foreign-earned taxation India/US DTAA [ 4 Answers ]

I was employed in US by a US organization for 5 months from Aug'05 to Dec'05 on H1B visa. I had file US returns with IRS in the month of April '06 with filing status as 'Other Single Non-resident alien', as I did not satisfy the substantial presence test of 183 days in US. Now, while I am...

For All you Contractors Out There [ 9 Answers ]

I got 2 estimates to do work on home.. I live in upstate NY approx.1/2hr west from Albany.. here is what they sent me ESTIMATE #1 Remove old asphalt siding Install R-Max 1/2" insulation(unable to blow in insulation) Install D-4 Dutchlap vinyl siding(GENTEK) Soffits and fascia included...

Taxation [ 1 Answers ]

Does higher taxation mean better standard of living? Justification is required.


View more questions Search