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Reporting payment to a non-U.S. resident for sale of a software patent

November 20, 2023
November 20, 2023


Q. Our university is in the process of trying to pay the distribution of profit from the sale of a software patent to an individual who is not an employee. This individual was involved in the creation of the software and will be receiving a portion of the revenue share from sales made. He provided us with a Form W-8BEN certifying his status as a non-U.S. tax resident. Is this considered payment for independent personal services, and, as such, should be withheld at a 30% rate (absent a…

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