Intercompany payment to a foreign subsidiary

October 12, 2020


Q. We have a subsidiary foreign company and have an intercompany payment which service was performed inside of USA. We are corporate and have 100% ownership. We know intercompany payments are generally not exempt from the withholding and reporting rules; if there is any U.S,-source income or/and witholdable payment, 1042-S reporting and/or 30% withholding is required, if the company does not provide Form W-8BEN-E and claim their tax treaty. Does our disregarded subsidiary need to provide Form…

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