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Deposit of withholding on foreign corporation payee

January 30, 2017 • Gregory Beck • Log In to Post Comments

I have a Colorado corporation doing business in California.  It wants to pay dividends to a foreign (non-US) owner.  A portion of the dividend is from CA sourced income (actually nearly all).  According to CA Pub 1017 under question #14 it says that the withholding rate is 8.84%.  But when my client goes on line to pay they can only find options for 7% withholding (which appears to be the default).

How does my client go about paying this online and do they withhold at 7% or 8.84%?


Comments

The rate is 8.84% and is paid with the Form 592-A.  There is nothing in the Form 592-A instructions that refers to electronic payments, so I'm checking with the FTB to see if this is allowed. 

Hi Gregory,

I've spoken with the FTB. Can you please send me an email (sandyw@spidell.com).

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