Discussion:1099 Withholding on a Foreign Citizen
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Discussion Forum Index --> Advanced Tax Questions --> 1099 Withholding on a Foreign Citizen
Discussion Forum Index --> Tax Questions --> 1099 Withholding on a Foreign Citizen
| 16 June 2008 | |
| I have a new client with a California LLC that has three members, my client, who is a US Resident and two foreign members, one from Denmark and one from the UK. This is a consulting/Computer software programing firm and the work done by the foreign members will be all performed outside of the US and they will not be in the US at all. The members will be getting profit/loss percentages at year end from the LLC but in addition to that receive commissions throughout the year on jobs they complete. On the commission monies that they will receive how much needs to be withheld for federal IRS purposes? They will receive a 1099-Misc for the commissions paid. The more I get into research for this the more confused I get. I find some thought for 14% and some for 30%?
Thanks in advance for any insight shared, Norma Rae Retrieved from "http://www.taxalmanac.org/index.php/1099_Withholding_for_Foreign_Citizen" | |
| 16 June 2008 | |
| Thanks. They will have to get ITIN's but I was just unsure of the withholding percentage.
Norma Rae | |
| 17 June 2008 | |
| You will first need to compute the effectively connected income. The foreign partners' share of the ECTI is subject to a a withholding rate of 35%. Also, you may be required to withhold California taxes at the rate of 9.3%. | |
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