What is IRC 881 and when does the 30% withholding tax apply to foreign corporations with U.S. income?
My LLC elected to be taxed as a corporation using Form 8832. I'm the sole owner and I live in Singapore. My tax advisor mentioned IRC 881 and said there could be a 30% withholding tax on certain types of income my company receives from the U.S. What kinds of income does this apply to? Is this in addition to the regular corporate income tax? I'm confused about how this works with my corporate election.
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