Withholding & Tax TreatiesAnswered

I'm paying a foreign freelancer who did work inside the US — do I withhold, and is W-8ECI the right form for a treaty claim?

P2
priya_2c88new member
May 14, 2026 2,050 views 1 answer
independent-contractorform-8233personal-servicestreaty-claim

My LLC hired an independent contractor based abroad. For one project they actually flew to the US and performed the work here. They asked to send me a W-8ECI so I don't withhold, and they mentioned a treaty in their country. I assumed 'independent contractor' meant no withholding at all. Is that wrong, and is W-8ECI really how they claim a treaty exemption on these wages?

Related Questions

WithholdingAnswered

Do I withhold and issue Form 1042-S if my foreign contractor worked entirely outside the U.S. in 2026?

I hired a contractor in Ukraine to do all the work remotely. They never came to the U.S. Does my LLC still need to issue them a Form 1042-S and withhold 30%?

O0
olena_087a·Apr 11, 2026
5211
WithholdingAnswered

What is IRC 1441 withholding and when do my U.S. clients have to withhold 30% from payments to me?

I'm a South Korean graphic designer with a New Mexico LLC. A U.S. company I freelance for said they need to withhold 30% of my payments because I'm a foreign person and IRC 1441 requires it. Is this r...

MK
minji_kr_45b7·Jan 12, 2022
1,8761
WithholdingAnswered

What is the difference between Chapter 3 and Chapter 4 withholding, and does a treaty claim cover both?

I keep seeing 'Chapter 3' and 'Chapter 4' on withholding forms and the 1042-S, and both seem to be 30%. My foreign payee gave me a W-8 claiming a treaty rate. Does that single treaty claim take care o...

E6
elena_6d51·May 18, 2026
1,7401
WithholdingAnswered

My US LLC (taxed as a corporation) pays royalties and interest to its foreign parent — do I withhold and file 1042-S?

We have a US LLC that elected to be taxed as a corporation. It pays a royalty for IP and some interest on an intercompany loan up to its foreign parent company. Because it's all inside the same group,...

L7
lukas_7a39·May 16, 2026
1,8801
WithholdingAnswered

Payroll asked for a W-8BEN for treaty-exempt wages, but I thought personal services should use Form 8233. Which one is right?

I do not want to send the wrong document just because the payroll team is using a generic template. My understanding is that treaty claims on personal services compensation are usually handled with Fo...

ND
natalia_d68d·Oct 25, 2025
1,7741
WithholdingAnswered

Do I need Form 8833 to claim a treaty withholding reduction in 2026?

I'm claiming a reduced treaty rate on dividends. Do I have to file Form 8833 to disclose the position, or is the reduced withholding enough?

E7
eshaan_7c17·Apr 13, 2026
2471
WithholdingAnswered

Do I have to withhold 30% when I take an owner draw from my disregarded LLC to myself as the foreign owner?

I'm the single foreign owner of a US LLC that is disregarded for tax. Every month I move profit from the LLC's bank account to my personal account abroad. Someone told me that because the money is goi...

A5
anika_5e72·May 12, 2026
2,4801
WithholdingAnswered

I'm paying US-source income to a foreign-owned disregarded LLC — whose W-8 do I collect and who goes on the 1042-S?

From the other side of the table: my company is paying US-source royalties to a US LLC that is disregarded and owned by a foreign person. The LLC sent me a W-8 in the LLC's own name claiming a treaty ...

N2
naomi_2f58·May 28, 2026
1,5601
WithholdingAnswered

I forgot to give payroll Form 8233 early enough, so they withheld tax. Can I still claim the treaty benefit on my return?

This looks like a timing problem more than a legal one. I may have qualified for treaty relief on personal services compensation, but I did not get Form 8233 to payroll in time, so the withholding hap...

P3
pawe_35a0·Oct 24, 2025
1,9421
WithholdingAnswered

Do I report a treaty-exempt or zero-withheld payment on Form 1042-S in 2026?

I paid a foreign vendor under a tax treaty so withholding was zero. Do I still issue them a Form 1042-S for 2026, or does the treaty exemption skip the reporting too?

KA
klara_a95f·Apr 15, 2026
3671

Have a similar question?

ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.

Become a Member — $9.99/mo

Disclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.

Watch the walkthroughs