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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 '16 at 21:47
  • @Carlos2W do I have to collect a W-8 or something form the foreign company? – diyoda_ Oct 27 '16 at 22:02
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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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