Central Withholding Agreement

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Central Withholding Agreement Services in Charlotte

Serving Athletes & Entertainers from All Around the World

Obtaining an O or P visa can be one of the most challenging aspects of bringing your talents and contributions to the United States. However, it is not the only problem you may face. Without proper planning, foreign entertainers and athletes often owe staggering amounts of money to the United States’ Internal Revenue Service (IRS). This can be extraordinarily frustrating for O and P visa holders because of the substantial contributions they are already making to the U.S. economy.

With the right guidance, however, you may arrange your business operations in a way that allows you to meet your tax obligations without paying more than you need to. At Oakhurst Legal Group, we provide highly effective central withholding agreement services to clients in Charlotte and all around the world. With years of experience and a track record of success, our attorneys can help you maximize profit and minimize liabilities.

To learn more about central withholding agreements and what our law firm can do for you, call 704-243-8178 or contact us online today.

How Do Central Withholding Agreements Minimize Taxes?

Most foreign athletes and entertainers are contractors, which means they are subject to income withholding of 30{1106fe1a032145a7ce887f3f2bb95c04ba93cfa6fff56783b1539dad6a0206fe}. Withholding agents that comply with this 30{1106fe1a032145a7ce887f3f2bb95c04ba93cfa6fff56783b1539dad6a0206fe} rule include The Ultimate Fighting Championships, Top Rank Inc., and the PGA Tour.

A central withholding agreement is an effective way of avoiding this rate because it allows you to pay taxes on your net revenue rather than your gross income. As such, you can negotiate your expenses into the withholding agreement.

Let’s say, for example, that a fighter enters into a $70,000 contract. Without the central withholding agreement, the fighter’s taxable income would be $70,000, and the government would collect $21,000. But if the fighter establishes a central withholding agreement, they can deduct $31,000 of expenses (e.g. management, training, promotional costs, part of the agreement fee, etc.) from the taxable income. Taxes and fees are then just short of $9,000, rather than $21,000.

The source of revenue to pay the U.S. government is usually the promoter of the competition, a booking agent, or another manager with financial authority and control. The central withholding agreement must be established at least 45 days before the event.

Get Started on Your Central Withholding Agreement Today

Oakhurst Legal Group works closely with our CPA partners to ensure total compliance with U.S. tax law as we form central withholding agreements.

You can depend on our law firm and partners to:

Time is of the essence with central withholding agreements, and the stakes can be extraordinarily high. As such, you can trust us to work with a sense of urgency and close attention to detail.

Get started on your central withholding agreement as soon as possible by calling 704-243-8178 or contact us online Today.

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