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U.S. income Tax Reporting Requirements For Hiring Foreign Workers


"How can companies operate using freelancers from overseas without have to issue a 1099 or pay payroll taxes? Are there any laws regarding using freelancers from oversees, or is there simply no red tape?"

This question was asked at a recent webinar, now available on-demand:

"Winning Globally – Determining When to Take Your Company International"

Please add your thoughts about it below. Thanks!


vincent Matrisciano
Title: Sr Dir
Company: Colgate Group
LinkedIn Profile
(Sr Dir, Colgate Group) |

To start with A U.S. entity paying a non U.S. tax person is required to withhold and remit tax on all payments at the prescribed rate unless a lower rate is stipulated in the tax treaty with their country. The bigger issue to watch out for is your U.S. company stands a strong chance, without proper planning ahead of time, of being subject to tax in the contractor's country with substantial tax implications and concepts of taxation that are can be quite alien from our U.S. system. Additionally the concept and statutory definition of a "contractor" can be very different from the IRS's.


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