When paying a sales commission out of the country do you need to withhold taxes?

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When paying a sales commission out of the country do you need to withhold taxes?

2007-06-26 01:55:38 · 2 answers · asked by judy d 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

the products sold and the commission paid both shipped out of the USA. the company that earned the commission and the company that purchased the products are out of the USA

2007-06-26 02:28:44 · update #1

2 answers

If the recipient is subject to US taxation, yes you must. If you have a nexus in the country where the commissions are paid you must comply with all local laws as well.

2007-06-26 02:02:09 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋

you omit to mention where the sales work was done. That controls the applicability and type of taxes.

more clarity, please??

2007-06-26 02:01:55 · answer #2 · answered by Spock (rhp) 7 · 0⤊ 0⤋