USA Question

[applekey]

Small group of touring US musicians will hire one foreign national to tour with them for a week in foreign country. Payment flows through US company. How to deal with payment to foreign national who is not performing services in US.

 

[Marshall]

For the touring group (as US partnership??), the payment would be a deduction for US tax purposes as long as the income is also taxed in the US.

As for any treatment for the musician, that would depend on the local tax laws, tax treaties , etc.