My S-corp paid two foreign contractors throughout 2021. They are both citizens of foreign countries and are located outside the US, so neither contractor would count as a US Person.
One contractor is from a country that has an income tax treaty with the United States. The other contractor is from a country that does NOT have an income tax treaty with the United States.
My questions are:
1. Am I required to withhold any taxes for either contractor?
2. Are the payments deductible in full as business expenses?
3. I understand that I need to file W-8BEN forms for these contractors. Do these need to be attached to my tax return, or are they filed in some other way?
4. How does the income tax treaty affect this? Is it something I do not need to worry about?
