Foreign Tax Withholding for Equipment and Software Purchase

[ndc24075]

My company is purchasing some equipment and software from a foreign company. I wonder how much tax withholding my company need to do for them. The software is highly specified and not on-the-shelf. The purchase for both is with full title transfer.

For equipment, I found University of Oregon said "Payments for tangible goods or products are not subject to U.S. reporting or tax withholding." Payments to Foreign Entities | Business Affairs (uoregon.edu) But it says nothing about software. There are not many references to cross check whether it is true so I hope someone can please help. Thanks.

[Critter-3 · Accepted solution]

You do NOT   need to withhold any taxes for a purchase of equipment or software  from anybody (foreign or domestic)... not even sure how you could even do it if you wanted to do so.   Keep the sales reciept for your records in case of an audit like any other purchase.