you basically need to request a form w8ben from your payee overseas.you as an U.S. person who makes a payment of income to a foreign person may have withholding tax liability . yu may request a form w8ben from the foreign payee;This form is used to establish entitlement to a reduced withholding rate or exemption under an applicable treaty.
Without the w8ben, you need to
you, The standard 30-percent withholding rate may be reduced or eliminated based on an applicable treaty or Code provision but there are stringent documentation requirements associated with claiming those exemptions.as aWithholding agent, when you fail to withhold or properly document why you did not withhold can be personally liable for the underwithheld tax.you
must annually fi le Form 1042 to report your total withholding tax liability, amounts withheld, reportable amounts paid to foreign person and other relevant information, and fi le (with the IRS) and issue (to each foreign recipient of the payments) Forms 1042-S showing the amounts and types of income paid to each recipient, the taxes withheld, and any applicable withholding exemptions.
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