Foreign Tax Withholding for Equipment and Software Purchase

ndc24075 — Tue, 10 Mar 2026 07:15:19 GMT

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.

Re: Foreign Tax Withholding for Equipment and Software Purchase

Critter-3 — Wed, 28 Dec 2022 13:54:23 GMT

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.

topic Foreign Tax Withholding for Equipment and Software Purchase in Business & farm

Foreign Tax Withholding for Equipment and Software Purchase

Re: Foreign Tax Withholding for Equipment and Software Purchase