Withholding Tax on Payments to a Canadian Company

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Latest post Tue, Feb 10 2009 3:38 PM by Lawrenceville. 2 replies.
  • Mon, Feb 9 2009 3:51 PM

    Question [=?] Withholding Tax on Payments to a Canadian Company

    Hi,

    We are getting marketing services from a company that is based in Canada, and we are in GA.
    They bill us on monthly basis, and we mail the check to a local address in GA.
    Do we need to deduct withhold any taxes?
  • Tue, Feb 10 2009 2:29 AM In reply to

    Feedback [*=*] re: Withholding Tax on Payments to a Canadian Company

    No tax withholding is required for the payments made for the marketing you buy from them. There are various kinds of payments made to foreign persons that are subject to withholding, but generally payment for regular goods and services are not subject to withholding.

    Dividends, rents, royalties and other payments of generally passive forms of income to foreign persons are subject to withholding. Also subject to withholding is the purchase of U.S. real estate from a foreign person (which includes the purchase of stock in U.S. corporation held by a foreign person, if the U.S. corporation's assets are more than 50% real estate) and certain purchases from foreign persons of timber and minerals that are extracted from the U.S.
  • Tue, Feb 10 2009 3:38 PM In reply to

    re: Withholding Tax on Payments to a Canadian Company

    Thank you so much for your reply.
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