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USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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I am owe a commission by foreign bank. Commission is held by

Customer Question

I am owe a commission by foreign bank. Commission is held by WIR bank in Switzerland, but was told to hold commission by clearing house of US tax agency.It was stated that money made abroad by US citizens have to taxed before it is transferred in US.? My CPA informed me the tax ($17000+) should be deducted from my commission, and commission transferred, and thus not be required to be remitted by me, before commission is allowed to transfer to me by WIR Bank
Submitted: 2 years ago.
Category: Tax
Expert:  USTaxAdvising replied 2 years ago.


Yes this does sound correct. It depends on which country the commission is earned from though. Most countries impose some sort of tax on outbound payments made to non citizens of their country. The US imposes a flat 30% withholding tax on payments made to non US citizens unless there is a treaty with the non US citizen's country.

I hope this provides the confirmation you were looking for. Please let me know if you have any further questions I will get back to you as soon as I can.

Best regards,

Customer: replied 1 year ago.
due to bonding and insurance on fund by central bank of Sao Tome Principe, So Africa, deduction which should have ordinarily be done by any organ of gov't of USA on fund before it clears your acct can not happen.the instruction for deduction of tax by the IRS through US clearing house received on 20 July 2015, based on the transfer of your commission into your acct-this is mandatory tax requirement_----????
Expert:  USTaxAdvising replied 1 year ago.

I'm sorry but I don't understand your last comments. Can you explain the facts in detail and the question you have?

Customer: replied 1 year ago.
Please explain!!!I have pd $23. to answer my question. I did not receive adequate explanation!! SHOULD TAX BE DEDUCTED FROM MY COMMISSION , AND COMMISSION THEN TRANSFERRED TO ME..???
I have been charged an additional $5. on 9/18??, and charged $18. on 9/24/ for which I have not received service!!!!!!!??Raymond K Oukrop
Expert:  USTaxAdvising replied 1 year ago.

Hello - I can answer your questions but I need to know the source of the income. Where is the income coming from? How much tax is being imposed?

Customer: replied 1 year ago.
I purchased an Oil Lift company through Sao Tome Principe bank in So africa in 2009! The commission for selling *brokerage*, after purchasing is $22 Mill. Agreement was made to pay 1/3 initially through WIR Bank in Switzerland. Wir bank has stated the commission cannot be paid as stopped by US clearing house until a tax of $17000+ is paid first. My CPA has informed me this tax should be deducted from commission and commission paid to me. I should not send any money!!
Your response??
Customer: replied 1 year ago.
Please respond
Expert:  USTaxAdvising replied 1 year ago.

I am sorry. I don't understand your fact pattern and I can't serve you as timely as you would like as I am travelling. I will opt out and hopefully another expert can assist. I truly apologize for the delay.