Canadian subcontractor for US firm

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christiane
Posts: 1
Joined: Tue Aug 13, 2013 3:47 pm
Location: Troy, Michigan

Canadian subcontractor for US firm

Post by christiane »

Please confirm if this is correct-a Canadian resident doing work as an independent contractor only in Canada for a US firm-they must File W-7 to get an ITIN to use on their Form W-8BEN to give to the US firm so that the compensation paid to them will be exempt from US withholding tax-as it is 'Income not from US sources'? And the US firm will be required to issue the Canadian resident a 1042-S at year end? The US firm is required to collect a W-8BEN from the CA subcontractor in order to properly claim the monies paid as a deduction? Thanks for any comments to verify that this is the necessary protocol.
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