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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Can the Ecuadorian withholding tax paid by a US Company on

Customer Question

can the Ecuadorian withholding tax paid by a US Company on an invoice issued to an Ecuadorian company be offset against the US Company's income tax?
Submitted: 7 months ago.
Category: Tax
Expert:  Mark Taylor replied 7 months ago.

Hi my name is Mark. I will be happy to help you with your questions.

Customer: replied 7 months ago.
I want an answer to the above questions as soon as possible..
Expert:  Mark Taylor replied 7 months ago.

I am sorry, I had to step away from the computer. Let me make sure that I understand the question. You are the US company and you paid an Ecuadorian vendor and withheld funds. Is this correct?

Expert:  Mark Taylor replied 7 months ago.

Let's say that the invoice from the vendor is $10,000. If you paid the vendor $7500 and withheld $2500 you could claim a $10,000 deduction. If you paid $10,000 to the vendor and a withholding of $2,500 you could deduct $12,500. I am not sure that I am completely understand your question. I will look forward to your response.