Thursday, March 9, 2017
U.S.-source income payments to foreign persons, as reported on Form 1042-S, Foreign Person’s U.S.-Source Income Subject to Withholding, rose to $697.6 billion for Calendar Year 2013. This represents an increase of 3.7 percent from 2012.
U.S.-source income payments subject to withholding tax rose by 24.5 percent from 2012, which fueled an increase in withholding taxes of 31.2 percent. Despite these increases, nearly 88 percent of all U.S.-source income paid to foreign persons remained exempt from withholding tax. The residual U.S.-source income subject to tax was withheld at an average rate of 16.8 percent.
Related Link: Foreign Recipients of U.S. Income