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INTERNATIONAL PAYMENTS - U.S. TAX WITHOLDING POLICY FOR PAYMENTS

In accordance with the IRS and Treasury regulations, payments to non US vendors are subject to a mandatory 30% US tax withholding on US sourced income (payment for services performed inside the United States) unless the income from providing such service is exempt under a provision of a tax treaty between the vendor's home country and the United States. The withholding rate may be reduced or the payment may be exempt from withholding under an applicable tax treaty between the United States and the vendor's country of residence.

To avoid withholding, non US vendors must submit a properly completed IRS Form W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, or W-8IMY to Booz Allen Hamilton before payment can be issued for such services. Non US vendors that are individuals who wish to avoid withholding must be eligible to claim a tax treaty exemption by having a social security number (SSN) or individual taxpayer identification number (ITIN) and must submit a completed IRS Form 8233 to Booz Allen Hamilton prior to performing services.

The purpose of completing the Form(s) W-8 or Form 8233 is to enable Booz Allen Hamilton to determine whether payments to the Non US person/entity are subject to U.S. reporting and withholding and if so to determine the withholding rate.

If a non US vendor performs services within the US and does not provide the proper documentation to support a tax exemption, Booz Allen Hamilton will withhold the appropriate taxes and report annually on IRS Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding).



See additional resources for detailed information on withholding payments to non US entities.

  • IRS Publication 515: Withholding of Tax form on Nonresident Aliens and Foreign Entities


  • U.S. Tax Treaties IRS Publication 901: A list of existing tax treaties between the U.S. and other countries


  • U.S. Withholding Agent Frequently Asked Questions


  • General Information for the International Taxpayer