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Do I have to withhold tax when paying a contractor overseas?

Banking, payments & cross-border

It depends on where the work is performed. Services performed entirely outside the US are generally foreign-source and not subject to US withholding.

US-source payments generally are, at the statutory rate unless a treaty reduces it. Either way you need a valid W-8 on file to support your position.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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