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Foreign Tax Withholding for Equipment and Software Purchase
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.
