Payments to Non-resident Aliens - Government reporting
Scott MacDonald (President/Owner, AlphaMac Resources, Inc.)
| Feb 1, 2012Interested to hear how your US based company handles obtaining W-8 forms from NRAs. Also, the relationship to the 1042 and 1042S.
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Answers
Company: Aargo Inc.
WE have contracted work out to international consultants in India, canada, and France, and asked for and received completed W-8s. These consultants may grumble and complain, but when you tell them that you will have to with hold income tax on any payments you make, its amazing how quickly a completed W-8 is signed and returned. Given the state of the world economy, I think everyone knows that international payments are watched closely by the tax authorities in every country, and that payment of tax is inevitable. Hence they are better of receiving consulting fees gross under W-8, than suffering the with holding and having to navigate the process of tax credit offset when filing their local returns!