topic Offshore Non US Vendors in Deductions & credits

Offshore Non US Vendors

appdeveloper — Sun, 24 Nov 2019 14:21:02 GMT

I recently opened my S-Corp LLC and just got my first contract to work on.

Part of the work will be outsourced to an offshore vendor (type Pvt. Limited similar to LLC in the US). The vendor companies and its workers are non US based residents or nationals.

How should I account these payments as?

- Tax Deductible Expense?

- Withhold some tax for these payments?

- Other options?

Re: Offshore Non US Vendors

Critter — Sun, 24 Nov 2019 17:00:19 GMT

First if you have never had an S-corp before I highly recommend you seek local professional guidance to be educated in the filing & payroll requirements and bookkeeping aspects so you start off on the right foot ... getting it wrong will be painful later.

Next ... paying for services from a company requires you to have substantiation ... they should send you a receipt/invoice and you probably should have a contract on file. If withholding is required depends on many factors ... again seek local assistance with someone versed in international business.

Re: Offshore Non US Vendors

appdeveloper — Wed, 27 Nov 2019 02:22:27 GMT

Thanks for your advice.