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I have a translation company in USA providing service overseas in various languages. I contract translators from other countries to serve my company. Do I have to tax them under the USA law?

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I believe if they're contractors, you wouldn't tax them. They would be responsible for any taxes they incur, either in this country or others. You would just pay them, which would be an expense for your business, although the more paperwork you have to document the relationship the better off you'll be. It sounds similar to this question:

Taxes and outsourced foreign employees / contract workers

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Tax is an imprecise word... I assume you mean "withhold payroll taxes?"

I believe that the US will not require you to withhold payroll taxes for an overseas employee who is not subject to US taxes at all. However, international law may vary depending on the country in question, and you should consult with a qualified tax lawyer from that country to make sure you are not violating employment laws in other countries.

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Foreign tax authorities are unlikely to be super-aggressive, because pursuing someone abroad is pretty hard, and the amounted unintentionally evaded will be relatively modest. But, you're right, foreign advice is best, and qualified advice is essential. – Marcin Apr 13 '11 at 14:35

Either you don't need to know this, or you need actual advice from a professional. I suspect you are in the latter camp, but either way, do not get your tax advice from an internet board.

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