Paying Foreign Contractors or a Chinese Parent: 30% Withholding, W-8BEN-E and Form 1042-S
Services performed outside the U.S. are foreign-source: generally no withholding and no 1099. U.S.-source interest, dividends and royalties paid to foreign persons are withheld at 30%, or 10% under the U.S.-China treaty with a valid W-8BEN-E. Forms 1042 and 1042-S are due March 15.
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