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Yes, the person will need to give your a Form
W-8Ben. This is because foreign
persons are normally subject to a U.S. tax rate withholding
of 30% on certain types of income that they receive from U.S. sources. The Form W8-Ben establishes that the individual is not a U.S. person for tax purposes, and the form claims that the person is a beneficial owner of the owner.
Link to Form W8Ben/instructions:
There is a tax treaty between the U.S. and Russia, which means that there will be no double taxation
for the foreign person. Article 22 of the treaty states
In accordance with the provisions and subject to the limitations
of the law
of each Contracting State (as it may be amended from time to time without changing the general principle hereof), each State shall
allow to its residents (and, in the case of the United States, its citizens), as a credit
against the tax on income, the income tax paid to the other Contracting State by such residents (and, in the case of the United States, also such citizens).
Link to full treaty:
The business will need to complete Forms 1042 and 1042-S.
Link to Form 1042/instructions:
Link to Form 1042-S/instructions:
Please let me know if I can be of further assistance to you regarding this matter.
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