I (Company) have been paying a foreign company for their work on few of our software products. I expected that it is a expense from our end, The payments over the times roughly adds up to 150K and I did not with hold any.

So, That foreign company has to pay taxes to the US government or what does it has to do with my company?

  • The other company should pay taxes in its country. Yours can declare the 150K as expense.
    – Carlos2W
    Oct 27, 2016 at 21:47
  • @Carlos2W do I have to collect a W-8 or something form the foreign company?
    – diyoda_
    Oct 27, 2016 at 22:02

1 Answer 1


You shouldn't need to collect anything from the other company. I assume they sent you invoices which you then paid. Those invoices and receipts are enough to establish that this is a legitimate expense for your own taxes. Whether the company you paid properly pays its own taxes is their issues, not yours.

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