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Cross-Border Payments & Withholding (1042-S, W-8BEN)
Paying foreign contractors, landlords, lenders or shareholders: collecting W-8 forms, withholding at the right treaty rate, and filing Forms 1042 and 1042-S.
What is included
- W-8BEN and W-8BEN-E collection and review
- Treaty rate withholding (e.g. on dividends, interest, royalties)
- Forms 1042 and 1042-S filing
- FIRPTA withholding on U.S. real estate sold by foreign persons
- Refund claims for over-withholding
The payer is responsible
If tax should have been withheld from a payment to a foreign person and was not, the U.S. payer can be liable for it. Services performed entirely outside the U.S. are generally not U.S.-source income, which is why the W-8 matters.
Common questions
Do I withhold on a Chinese contractor working in China?
Generally no, because the income is foreign-source; collect a W-8BEN to document it.
Tell us your situation. We will tell you the fee.
A few short questions, a written quote within one business day, and a free 15-minute consultation if you would rather talk it through first.