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Foreign Directors Face 30% Withholding Tax at U.S. Boards

6/2/2025

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Summary

Story summary

Non-U.S. directors at U.S. board meetings may incur a 30% withholding tax on fees.
The de minimis exception under Sec. 861 (a)(3) allows exemptions for limited income and time spent in the U.S.
Income tax treaties can offer relief, though many states may not honor federal exemptions.
Compliance with IRS reporting is essential to avoid penalties for foreign companies.

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Story summary

Non-U.S. directors at U.S. board meetings may incur a 30% withholding tax on fees.
The de minimis exception under Sec. 861 (a)(3) allows exemptions for limited income and time spent in the U.S.
Income tax treaties can offer relief, though many states may not honor federal exemptions.
Compliance with IRS reporting is essential to avoid penalties for foreign companies.