Treaty Return

[mtnman]

I'm confuded, for a business that has US income but no establishment in US and time spent in US < 6months with withholding tax when filing a 1120F with form 8833 does the return include all US income and expenses ? If so how do you reduce tax owing to zero ? What form do you need to support withholding tax and who is responsible for preparing it ?

Or

Do you not include any income and expenses and file form 8833 ?

Thanks

[nelsona]

This is ion the instructions that have already been pointed out to you:
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Treaty or Code exemption. If the corporation does not have any gross income for the tax year because it is claiming a treaty or Code exemption, it must still file Form 1120-F to show that the income was exempted by treaty or Code. In this case the corporation should only complete the identifying information (including items A through M) at the top of page 1 of Form 1120-F and a statement that indicates the nature and amount of the exclusions claimed. In the case of a treaty exemption, the corporation may complete item W at the top of page 2 of Form 1120-F, which includes completing and attaching Form 8833, if required in lieu of attaching a statement....

Note. If the corporation does not have any gross income for the tax year because it is claiming a treaty or Code exemption, and there was withholding at source, the corporation must complete the Computation of Tax Due or Overpayment section at the bottom of page 1 of Form 1120-F (in addition to the information specified in the previous paragraph) to claim a refund of the amounts withheld.

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You are excluding your gross income due to treaty.
So, on Page 1, you zero lines 1-3, put the withholding on line 5i, and request refund.

Question, how was income withheld from corp-to-corp payment?

[mtnman]

Thanks Nelsona, I had forgotten that I had previously asked this question. My memory is slipping.