Foreign contractors may be subject to U.S. tax obligations depending on various factors, including their country of residence, the nature of the work performed, and applicable tax treaties. Generally, non-U.S. contractors are required to pay taxes on income sourced from the United States. However, tax obligations can be reduced or eliminated under certain tax treaties.
In some cases, employers may be mandated to work withhold up to 30% of a foreign contractors pay. It is essential that you understand your obligations when engaging a foreign contactor. If you are uncertain how to navigate these logistics, please contact our offices to schedule confidential consultation.