Global Information Reporting - International Tax Reporting and Withholding

Automotive companies enter into thousands of transactions each year. Many of these transactions involve making payments of interest, dividends, rents, royalties, or compensation for services. Where a U.S. taxpayer makes a payment of U.S. source income of the type outlined above to a foreign person or entity, withholding may be required. Failure to withhold can result in the U.S. taxpayer, not a foreign recipient, being liable for the tax that should have been withheld, plus substantial penalties and interest.