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, I assumed related-party payments are exempt from withholding. Is that true, or do dividends, interest, and royalties to a foreign parent still get withheld and reported on Form 1042-S?
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